Case Explained: FRANK WILLIAM BONAN, II v. FEDERAL DEPOSIT INSURANCE CORPORATION

Court: United States Court of Appeals for the Seventh Circuit Filed: 2026-08-12 The Seventh Circuit denied Frank William Bonan II’s petition for review of an FDIC administrative order imposing a permanent prohibition from working at any federally insured institution and assessing a $105,000 civil money penalty. The court held that the FDIC’s enforcement action under 12 U.S.C. §§ 1818(e) and (i)(2)(B) did not violate Bonan’s Seventh Amendment right to a jury trial because the statutory claims for “unsafe or unsound banking practices” and “breach of fiduciary duty” constitute public rights rather than private rights cognizable at common law. Applying the framework established in *SEC v. Jarkesy*, the court reasoned that these standards are regulatory terms of art with no direct analogue to common law actions existing at the Founding Era, thereby falling within the “public rights” exception to Article III jurisdiction as defined in *Atlas Roofing Co. v. OSHRC*. The court further rejected Bonan’s Article II challenge regarding the removal protections for FDIC Board members and administrative law judges, ruling under *Collins v. Yellen* that he failed to demonstrate compensable harm resulting from those restrictions. Additionally, the court found no Fifth Amendment due process violations regarding allegations of agency bias, lack of pretrial discovery, or improper service of notice. Finally, applying a deferential “substantial evidence” standard of review, the court affirmed the FDIC Board’s factual findings that Bonan breached his fiduciary duties of care and loyalty by approving a loan to uncreditworthy borrowers, which caused financial loss to the bank and warranted the sanctions imposed. Consequently, the petition for review is denied, leaving the FDIC’s orders in effect. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.