Chrysler Financial Denied Additional TARP Aid

by Jordan Yerman | April 21, 2009 at 10:31 am

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Chrysler's finance division turned down a $750 TARP loan because it wouldn't agree to an executive pay cap.

Several sources differ in their wording between "turned down" and "was turned down", but the gist is clear: Chrysler Financial disqualifies itself from additional loan money (as part of the bank bailout) by deciding not to enact executive compensation limits.

On the actual automaking front, CHrysler is also not doing so hot, as discussed further below.

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 loan offered was separate from the $4 billion which Chrysler received as part of the auto-industry bailout.

Chrysler Financial got a $1.5 billion loan from the bank bailout program in January and said it would use the money to provide low-rate financing to car buyers.

Meanwhile, Chrysler has only nine days remaining in which to seal the deal with Fiat.

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