Monday, 27 June 2016
Last updated 23 min ago
Apr 29 2013 | 12:37pm ET
Kohlberg Kravis Roberts' stewardship of First Data Corp. hasn't gone precisely as planned. Now, the private-equity giant has turned to a top JPMorgan Chase executive to turn the payment processor around.
Frank Bisignano was named CEO of First Data on Friday. The company has lost money every quarter since KKR bought it 2007. In one of the largest leveraged buyouts of all time, KKR paid $26.35 billion for the company, but now values it at only 70% of that level.
"Frank is known for managing technological innovation in customer-focused businesses, and can now apply his skills and experience to leading the largest transaction payment processing company in the world," First Data Chairman Joe Forehand said.
Bisignano had spent eight years at JPMorgan, moving from one crisis to another. He helped integrate the bank with Bear Stearns, which it bought during the financial crisis. In 2011, he took over JPMorgan's mortgage operations amidst controversy over foreclosures, and last year was named co-chief operating officer in the wake of the London Whale trading catastrophe, which cost JPMorgan more than $6 billion.
Prior to joining JPMorgan, Bisignano was at Citigroup, and led that bank's operations following the Sept. 11, 2001, terrorist attacks.
Todd Maclin, a top executive at JPMorgan, in 2011 called Bisignano "the best fix-it person we have."