The former finance chief of WorldCom testified on February 10, 2005, that the company called off 2001 merger talks with Verizon after he and CEO Bernard Ebbers worried Verizon would discover WorldCom had cooked its books. Scott Sullivan told jurors he worried Verizon would uncover the fraud during a process called due diligence, in which companies considering a merger examine each other’s books.
In 2002 HSBC claimed they did due diligence prior to making and offer for troubled predatory lender Household International. Questions remained about such due diligence. But SEC filings reveal HSBC had at least one member on the financial advisory board at Household International.
What is the link between then-CEO William Aldinger and former Citigroup CEO Sanford Weill? Three of Citigroup’s board members, AT&T Chief Executive C. Michael Armstrong, Citigroup CEO Sanford Weill and former ChevronTexaco CEO Kenneth Derr also sit on AT&T’s board. Citigroup has pursued business with AT&T over the years. William F. Aldinger, CEO and Chairman of troubled predatory lender Household International, now owned by HSBC, also sits on the board at AT&T.
Citigroup was forced to close its private bank in Japan last year for ethical lapses, including failure to check properly for possible money-laundering operations. In Europe, Citigroup bond traders sought to boost profits by buying large amounts of futures contracts on German government bonds, driving up the price, then selling the bonds on other markets for a quick profit.
Meanwhile where Aldinger is or was involved, suits and settlements approach the US$3 Billion mark with questionable practices and possibly shady tactics. At AT&T, for instance, he and others tried to say the phone company provided advertising services instead of telephone services. A no-brainer? You decide.
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[...] ta reflects another story” said advocates at Household – HSBC Watch. “Look at Citigroup in Japan and HSBC’s involvement with Shea v Household [...]