Chrysler Financial Snubs Fed Bailout Bucks Over Pay Limits
The Washington Post reports that Chrysler Financial turned down $750 million worth of federal loans to avoid executive pay limits. Surprised? Me neither. And that’s not a whole lot of money in the grand scheme of things ($1.5 billion already “loaned” to Chrysler Financial, $6 billion for GMAC, $7 billion for Chrysler, $17.4 billion for GM, $5.5 billion for suppliers). Anyway, the WaPo sure has its dander up. “In forgoing the loan, Chrysler Financial opted to use more expensive financing from private banks, adding to the burdens of the already fragile automaker and its financing company . . . The company’s decision comes amid a firestorm on Capitol Hill and elsewhere over the lavish pay of executives at companies being aided by government money. The uproar has made companies skittish about taking federal aid and hindered the Obama administration’s effort to revive lending by replenishing the coffers of the nation’s financial firms.” Ah. OK. So, NOT accepting federal support is bad. Welcome to Bailout Nation. And its media dupes, like Autoblog, who called ChryCo execs’ explanation (after the jump) “disingenuous.” Folks, the LESS taxpayer-funding in the US auto industry, the better. Period.
More by Robert Farago
Comments
Join the conversation
@Robert Schwartz: I keep seeing the "Employee Pricing Plus Plus Plus Plus Really Plus" commercials on television where they announce "[this promotion] is in its final month!" I keep thinking it's not the final month of the promotion, it's the final month of Chrysler's existence.
I'd like to hear more about the "private banks" that think lending C7hrysler any money at all is a good use of their funds. Did they need investment losses for tax purposes?
Of course they don't want TARP money that would limit there bonuses since it's the last one's they'll ever see (if they ever do see them in liquidation).
What I want to know about are all the families who have been, and may soon be, on assistance because of all the intrusions into the labor market in Michigan. Oh, I guess we will never here about that in the news.