Adding to mortgage blues are layoffs like we see here. AT&T Inc. plans to eliminate about 10,000 jobs after completing the $67 billion purchase of BellSouth Corp. The reductions will come in 2007 through 2009, Chief Financial Officer Rick Lindner told analysts. The connection that some people fail to see is that one of AT&T’s board members is William F. Aldinger III, once in charge at Household International when HSBC bought the predatory lender. Some think the seeds of subprime can be traced back to Aldinger’s Household International.
Aldinger is president and chief executive officer of Capmark Financial Group Inc., an international commercial real estate finance company in Horsham, Pennsylvania. Some analysts believe the subprime problems we see today started as a small snowball, formed by William F. Aldinger III, and sent rolling downhill from Household International during the period from 1994 through 2003. A study called The History of Subprime and Predatory Lending With an Emphasis on Household International is an interesting read. The snowball became unstoppable and crushed billions of dollars out of investments around the world.