Frank Bisignano faces accusations of spying on colleagues and misusing company resources during his time at JPMorgan Chase over ten years ago. These claims were highlighted in a detailed report by the Wall Street Journal regarding his role as head of the Internal Revenue Service under President Donald Trump. Bisignano’s career has included various senior positions at prominent banks, notably serving as co-chief operating officer, where he reported to CEO Jamie Dimon.
In light of the seriousness of these claims, I reached out to JPMorgan for clarification. The bank previously referred to Bisignano as a “trusted advisor” whose dedication to both the Social Security Administration and the IRS was commendable. I spoke with a senior executive at JPMorgan who has knowledge of the situation.
“The bank looked into the allegations of espionage and misuse of funds but found no proof of any misconduct,” he stated.
A representative from the Wall Street Journal has defended their report, asserting that it is accurate and well-supported by knowledgeable sources. They expressed confidence in their findings.
For full context, it’s worth mentioning that the column “On The Money” shares corporate ownership with the Wall Street Journal. In my previous reporting days on Wall Street, I had the chance to meet several individuals involved in this narrative, including Bisignano, Dimon, and Wells Fargo CEO Charles Scharf, who is also mentioned in the piece, alongside the president himself.
Unquestionably, this is a significant matter, especially considering Bisignano’s current leadership of both the IRS and the Social Security Administration. As noted in the report, he oversees agencies that manage vast confidential financial data for taxpayers. His goal has been to leverage his Wall Street experience to enhance the efficiency of these government bodies for the benefit of citizens.
“More than a decade ago, he held the position of co-chief operating officer at JPMorgan Chase, giving him extensive visibility and authority across all departments. According to sources familiar with the allegations, he reportedly leveraged his power within the security department to access confidential information and spy on fellow executives without legitimate business reasons,” the article states.
One of those executives mentioned was Mr. Schaaf, who was leading consumer banking at the time. Other allegations of misconduct surfaced, some of which seem to reflect common complaints about individuals with a tougher demeanor.
Among the serious accusations is the alleged misuse of a company jet for personal matters. I found that particularly surprising. Knowing Bisignano, I initially thought he might be too careful to engage in behavior that would provoke someone like Dimon, who is known for being a meticulous manager.
Another bank executive, speaking anonymously, confirmed that the allegations were investigated, with JPMorgan finding no evidence of any wrongdoing. Bisignano has denied all charges through his legal counsel.
I inquired with Schaaf about the situation. He shared that he and Bisignano were friends and mentioned hearing past rumors about espionage, yet he maintained, “All I know is what I’ve seen, and I’ve never seen any espionage.” After the story broke, he spoke with Bisignano, who dismissed the allegations, even sharing a lighthearted moment about it.
A different former colleague offered insight, stating, “Bisignano was responsible for compliance at JPM and all senior management was directed to focus on it. The internal police were also under his purview, thus he had visibility over our actions.”
While multiple sources have been cited by the Journal, Bisignano, through his lawyer, has denied all allegations. It’s important to remember that these events occurred over a decade ago. After leaving JPM in 2013, Bisignano achieved significant success as CEO of First Data, before joining Team Trump to reform two agencies known for bureaucratic inefficiencies after their merger with Fiserv.
To tackle related issues, he recently appointed Vince Lapadula, another former JPMorgan executive, as his second-in-command at the IRS. Lapadula mentioned that he consulted Dimon before making the move, and Dimon enthusiastically encouraged him, referring to Bisignano as “Mr. Fix-It.”
It makes one wonder why this story is emerging right now.
