William F. Aldinger, former CEO of troubled predatory lender Household International and now Chairman of HSBC North America, is also on the board of directors of AT&T. Aldinger has a law degree and also sits on the board of Mastercard International. Here is the latest report (February 24, 2005) from Federal Regulators:

WASHINGTON — Federal regulators ruled Wednesday that AT&T skirted the law by failing to pay fees on its popular prepaid calling cards, a decision that could cost the long-distance company about $500 million.

AT&T Corp. contended that the cards should not be subjected to the fees, which go to local phone companies to cover their cost for connecting calls on their lines and to a federal fund that subsidizes phone and Internet service in rural areas and for schools and libraries.

The company used to pay the fees, but in 1999 it added advertisements heard when someone placed a call using the cards. The ads, AT&T argued, made the cards an “information service,” which are exempt from fees. But the Federal Communications Commission disagreed, ruling the ads are incidental to the underlying telecommunications service offered to the cardholder.

Consumer watchdog organization Household – HSBC Watch, which monitors William Aldinger, said the “information service” idea is so shallow and outrageous that anyone with a law degree should have seen through the sham.

While on the board of MasterCard International, American Express sued and won a judgement for US$1 billion and another suit is pending. While CEO of Household International, Aldinger’s company was fined $484 million for predatory lending. After taking over at HSBC, they paid another $11 million under Shea v Household and have RICO charges pending under civil racketeering, influence and corrupt organization laws. Household International is now called HSBC Finance Corporation.

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