Pay Rule Led Chrysler Financial to Spurn Loan

[scottm]

http://www.washingtonpost.com/wp-dyn/co ... 56_pf.html

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.

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.

In forgoing the loan, Chrysler Financial opted to use more expensive financing from private banks, adding to the burden on the already fragile automaker and its financing company.

I don't blame them. They would find themselves in a 90% tax bracket.