JPMorgan Chase appears to have settled a dispute with a former close confidant of its chairman, Jamie Dimon, the latest reminder that the inner circle that helped the bank weather the financial crisis is no more.
Frank Bisignano, once the bank’s co-chief operating officer, departed last year to become the chief executive of First Data Corporation, a payment processing firm.
After he left, however, Mr. Bisignano lured away several other JPMorgan employees, including its former chief information officer Guy Chiarello, violating the terms of Mr. Bisignano’s exit agreement, according to an article in The Wall Street Journal on Monday.
JPMorgan, First Data and Kohlberg Kravis Roberts, the private equity firm that owns First Data, all declined to comment.
To stop the bank from challenging his hires, First Data agreed to pay JPMorgan under $10 million, according to the story.
Mr. Bisignano was one of a key group of executives who helped Mr. Dimon steer the bank during and after the financial collapse of 2008. Mr. Bisignano’s reputation as a Mr. Fix-it was not blemished by the London Whale trading blowup that cost the bank $6.2 billion.
Mr. Dimon’s inner circle, once hailed as “The Survivors†on the cover of Fortune magazine in 2008, has long since thinned. Most of the 15 executives profiled in the article have departed.
Ina R. Drew, who ran the division at the center of the trading loss, resigned shortly afterward. Last year James E. Staley, the chief of asset management, joined BlueMountain Capital Management, one of the hedge funds that profited from the London Whale trade.
Heidi Miller, who ran the treasury and securities service, retired in 2012. William T. Winters, another senior executive, left to start his own asset management and advisory firm in in 2011.
Charles W. Scharf, who ran the bank’s retail arm, departed in 2012 after being reassigned to an internal private equity group, a move that many saw as a demotion despite Mr. Dimon’s expressions otherwise.
Jay Mandelbaum, the former head of strategy and business development, Barry L. Zubrow, the chief risk officer from 2007 to 2012, and Steven D. Black, an architect of JPMorgan’s acquisition of the broker Bear Stearns, have also departed.
Others, however, remain. Michael J. Cavanagh was promoted to co-chief executive of JPMorgan’s corporate and investment bank in 2012.
S. Todd Maclin moved to Texas to run the consumer and commercial bank, although some inside the bank saw the move as a demotion from Mr. Maclin’s spot on JPMorgan’s management committee. Gordon A. Smith now runs consumer and community banking.
