Report: Chrysler Financial turned down $750 million in government loans over limits on executive pay

Posted: Apr 20, 2009
 Email 6 Comments

According to sources familiar with the situation, top officials at Chrysler Financial turned down $750 million in government loans because executives wouldn’t subject to federal limits on salaries. Sources said that the government was offering the loan earlier this month to help boost leasing and financing for new Chrysler customers.

It is reported the Chrysler Financial opted to go with more expensive financing from private banks which in return added its financial burdens and to those of Chrysler LLC.

Responding to the statement, Chrysler Financial denied that its executives had refused to accept new limits on pay. It did not say why it chose to forgo the loans provided by the government.

The U.S. Treasury Department has previously provided Chrysler Financial with $1.5 billion in loan with less stringent limits on executive pay.

- By: Omar Rana

Source: Washington Post


Share |  Email  Print |




Subscribe & Connect

Connect with us on any of our social profiles below.

Subscribe to our e-mail newsletter to receive updates.

  • headshox

    I don't blame them for not taking the money, I wouldn't want that money either. The government gave this money out then once everyone had checks in hand put rules and regulations on it. Not that I think these executives are worth the millions they get paid but you can just attach rules after the fact. When the government tells you how much you can make that's call socialism.

    If the government wants to act as a bank then they can't tell the private sector how to spend its money.

    Good job Chrysler!

  • Neil

    Then give back the 10 billion they have accepted elsewhere in the same company.

  • zermatt

    The WSJ reported that the government is putting the brakes on the banks that want to return the TARP money. It is all about control of business and remaking business to look like some sort of Jr High social studies experiment – some like to call it social re-engineering.

    If businesses, like teenagers, are not allowed to fail the country gets businesses that will expect to be saved from themselves. Not everyone should get a trophy just for showing up. Without risk there is no reward.

    The government needs to readjust their involvement in business.

  • jim

    Another nail in the coffin for the idiot US automakers. Nice job and farewell , morons….. Leave more room for the better European and Asian companies

  • zermatt

    The WSJ reported that the government is putting the brakes on the banks that want to return the TARP money. It is all about control of business and remaking business to look like some sort of Jr High social studies experiment – some like to call it social re-engineering.

    If businesses, like teenagers, are not allowed to fail the country gets businesses that will expect to be saved from themselves. Not everyone should get a trophy just for showing up. Without risk there is no reward.

    The government needs to readjust their involvement in business.

  • jim

    Another nail in the coffin for the idiot US automakers. Nice job and farewell , morons….. Leave more room for the better European and Asian companies