The executive ranks at JPMorgan (NYSE:JPM) have shrunk once again. The New York Times reported that Frank Bisignano, one of its co-chief financial officers, is on his way out of the bank and headed to global payment processing company First Data. His departure will leave co-COO Matt Zames in sole control of the position at Morgan.
CEO Jamie Dimon released a statement on Sunday announcing Bisignano’s exit as investigations continue to haunt the bank, which was embarrassed by the London Whale scandal and continues cooperating with federal probes. Dimon and his team were considered the untouchables in many circles, but their multi-billion-dollar blunder in London has taken a great deal of shine off that reputation. Before the London debacle, Bisignano was one of Dimon’s key team members. His specialty was in the mortgage division, which was plagued by problems following the recession.
Bisignano is considered one of the reasons that industry turned around for JPMorgan Chase, and the London fiasco was entirely unrelated to mortgage dealings. Bisignano will become chief executive of First Data Corporation, a privately held company based in Atlanta. First Data handles payment processing and is acknowledged as one of the top companies in the field. JPMorgan will continue without Bisignano’s expertise…
Bisignano’s reputation could be explained with a quick glance at the numbers. When he took control of JPMorgan’s mortgage business in 2011, the division had a net loss of $2.1 billion for the year. Bisignano turned that around in short order, leading the charge to a $3.2 billion profit the following year. He is credited with helping to turn the housing crisis around as leader of a huge bank’s mortgage wing.
Back at JPMorgan, the struggle to get past the London Whale debacle continues. Jamie Dimon is still trying to apologize for the company’s mistakes in the investment branch and offered hope for shareholders in recent statements. “We are reprioritizing our major projects and initiatives,” he said, in a long-winded effort to assure investors of the company’s compliance efforts. As numerous JPMorgan employees remain exposed to charges, the company is hoping the storm will pass soon. In either case, Frank Bisignano won’t be around to watch it happen.