Pay Rule Led Chrysler to Spurn Loan, Agency Says - washingtonpost.com:
"Top officials at Chrysler Financial turned away a government loan because executives didn't want to abide by new federal limits on pay, according to new findings by a federal watchdog agency.From Bloomberg:
The government had offered a $750 million loan earlier this month as part of its efforts to prop up the ailing auto industry, including Chrysler, which is racing to avoid bankruptcy. Chrysler Financial is a major lender to Chrysler dealerships and customers"
"The finance company failed to get its top 25 executives to sign compensation waivers and the loan request was denied, according to the report from the special inspector general for the TARP....The finance company said in a statement last week that it had adequate capital and didn’t need the additional money. A person familiar with the talks said stipulations on the loan were too onerous.But fear not, there are already reports that Chrysler (not Chrysler Financial) will be getting $500 million more to get them through until the possible deal with Fiat. Stay tuned.
"The administration in March set aside up to $500 million to help Chrysler get through April, according to a report on oversight of corporate bailout funds prepared by the Treasury Department inspector general."