Senate Democrats press Fiserv for details on ex-CEO Frank Bisignano's role

[President Trump Delivers Remarks From The Oval Office]

U.S. Senate Democrats Ron Wyden and Elizabeth Warren are demanding answers from Fiserv (FI [https://seekingalpha.com/symbol/FI]) about former CEO Frank Bisignano's role in the payment technology company's recent slump and its discredited financial projections.

Last week, FI shares plunged [https://seekingalpha.com/news/4510095-fiserv-shakes-up-leadership-board-after-big-q3-earnings-miss-stock-plunges-30] after the firm revamped its leadership, refreshed its board, slashed its full-year earnings guidance, and launched a new action plan after its Q3 earnings fell short of Wall Street consensus. The stock extended losses as a media report disclosed Fiserv's (FI [https://seekingalpha.com/symbol/FI]) small-merchant customers were getting fed up with the extra fees [https://seekingalpha.com/news/4511592-fiserv-stock-extends-decline-as-details-of-strategy-overhaul-guidance-reset-emerge] attached to the Clover payment systems.

Meanwhile, the Senate Finance and Banking Committee leaders have asked Fiserv's (FI [https://seekingalpha.com/symbol/FI]) new CEO, Mike Lyons, to detail Bisignano's involvement in the company's now-disavowed financial forecasts and its bids for federal contracts. Bisignano now oversees both the Social Security Administration and the Internal Revenue Service.

"At a minimum, Mr. Bisignano appears to have failed to manage Fiserv effectively, and may have misled investors and the public about the company’s financial status, raising concerns about hisability to serve as a key Social Security and IRS official in the Trump Administration," the senators wrote in a letter.

They also noted that Bisignano held [https://www.finance.senate.gov/imo/media/doc/wyden_warren_fiserv_letter.pdf] roughly $594M in Fiserv (FI [https://seekingalpha.com/symbol/FI]) shares when he was confirmed by the Senate in May, and offloaded them between May 16 and July 1, when the stake was valued at about $530M.

The lawmakers asked for a response by Nov. 20.

Neither the Social Security Administration nor Fiserv (FI [https://seekingalpha.com/symbol/FI]) immediately responded to Seeking Alpha's request for comment.

FI shares gained 2.3% in Friday afternoon trading, though they're on pace to close out the week with a 3.3% slide.

DEAR READERS: We recognize that politics often intersects with the financial news of the day, so we invite you to click here [https://seekingalpha.com/article/4836097-politics-and-the-markets-110725] to join the separate political discussion.

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