The president and chief executive of Bisys Group Inc., Russell P. Fradin, has submitted his resignation, and the New York banking technology outsourcing provider appears to be considering selling itself.
Bisys said Thursday that that its chairman Robert J. Casale, would be interim president and CEO starting Sept. 5. Mr. Fradin will join Hewitt Associates Inc., a Lincolnshire, Ill., human resources services company.
Bisys also said that it has retained Bear, Stearns & Co. Inc. to "explore strategic alternatives."
It said that because of the management shuffle it probably will be late filing its earnings statement for fiscal 2006, which ended June 30, with the Securities and Exchange commission.
Bisys has been plagued by accounting missteps. In 2004 it restated results going back to 2001 to correct its reporting on commissions in its life insurance business. The restatement lowered earnings and shareholders' equity by $100 million.
In April, Bisys finally filed its annual report for the fiscal year that ended June 30, 2005, along with restated results for previous years. It had delayed the filing while it investigated the accounting treatment for fees received from mutual funds for which it provided outsourced processing.
In March, Bisys sold its information services unit, which provided outsourced core processing to banks, to Open Solutions Inc. of Glastonbury, Conn. The sale had been delayed twice because of issues related to the restatements.
