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