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But bringing back Daniel M. Meyers appears to have helped the struggling company at least in the short term.
First Marblehead enjoyed a stock market rebound market yesterday after announcing the leadership change and the completion of a nearly $200 million loan from Goldman Sachs Group. The Boston-based First Marblehead arranges securities backed by student loans.
Yesterday, First Marblehead's officers announced that Chief Executive Officer Jack L. Kopnisky is resigning, and Meyers, 45, the company's co-founder and former CEO, is taking over. Kopnisky, 52, will depart in September.
First Marblehead shares jumped $2.14, or 71 percent, to $5.14 on the New York Stock Exchange yesterday. Still, the price reflects a dramatic decline from October 2007, when the company's shares traded at more than $40.
First Marblehead's main troubles began as the market for student loan-backed assets evaporated amid a global credit crisis. It slashed 500 jobs in May.
Meyers resigned as CEO in 2005 after admitting that he had given $32,000 in gifts to the senior vice president in Bank of America Corp.'s student loan operation. At the time, the bank had multiple contracts with First Marblehead.
Meyers told First Marblehead's board that he used his own money to buy the gifts, but the directors determined that he violated the firm's ethics policy.
"We believe there is no better person to now lead First Marblehead than our co-founder Dan Meyers," said William Berkley, the company's lead director, in a statement. "Dan provides extraordinary strategic, market and product leadership and is uniquely qualified to guide the company through this challenging operating environment."
cmcconville@bostonherald.com
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