A Trump administration official’s divestment from a financial technology company earlier this year has saved him more than $300 million due to the company’s since-fallen stock price.
Frank Bisignano, the commissioner of the Social Security Administration, had to sell his stake in Fiserv, where he had been CEO, after he was confirmed to the commissioner role in May.
Bisignano, 66, completed the process in September, with he and his family raking in $560 million, The New York Times reported Thursday, citing filings with the Securities and Exchange Commission.
As of Thursday, Fiserv’s stock price was about half of what it was on Tuesday, after Bisignano’s successor revealed a poor profit outlook. According to the Times, the value of what Bisignano had divested from was now worth around $215 million.
Bisignano and Fiserv were sued earlier this year for allegedly deceiving investors through exaggerated data. The company denies wrongdoing and said it will “vigorously” defend itself. Bisignano didn’t respond to a request for comment from the Times.
The Daily Beast has reached out to the White House, the SSA and the IRS, where Bisignano has been in the newly created role of chief executive officer since early October.
Fiserv’s new chief executive, Michael Lyons, faulted Bisignano for decisions to maximize short-term growth at the expense of long-term health.
“Over the last few years, decisions to defer certain investments and cut certain costs improved margins in the short term, but are now limiting our ability to serve clients in a world-class way, execute product launches to our standards and grow revenue to our full potential,” Lyons told a group of investors on Wednesday, according to the Times.
Bisignano has made dozens of GOP-aligned donations, FEC filings show. In May 2019, he gave $125,000 to the Trump Victory political action committee and $2,800 to Donald J. Trump for President, Inc.
Trump nominated Bisignano to lead the SSA last December.
