The Washington Independent
The Washington Independent

No One’s Fault But Their Own

Last updated: 07/31/2020 08:00 | 04/21/2009 01:16
Katya Ryder

You might have heard that Detroit’s automakers have been struggling recently, and also that the federal government has stepped in with offers to help the dying companies weather the storm if only they’ll revamp their business models and make some concessions regarding employee compensation.

Well, it seems that some industry executives haven’t been willing to take the pay cut. The Washington Post reported today that Chrysler Financial — the lending arm of the withering automaker — lost out on $750 million in federal help because some executives refused to accept Washington’s pay limits. The development means that the company will have to take out its loans from private banks at higher rates, according to The Post.

Most of the agreement was in place, sources said. But on April 7, Treasury asked Chrysler Financial to have its top 25 executives sign waivers regarding their compensation, according to sources familiar with the matter who declined to talk publicly because they were not authorized to speak.

Within a week, the company responded that some of the executives had refused to give their approval. By last week, Treasury had rescinded the loan offer, the sources said.

Chrysler Financial is denying that this is the case, arguing that the company — which has already accepted $1.5 billion in emergency help from Washington — is healthy enough that it doesn’t need more, The Post reported.

“Chrysler Financial has determined that it has adequate private capital funding to cover the short-term needs of our dealers and customers and as such no additional TARP funding is necessary at this time,” the company said in its statement.

That turns this into an all-too-common he-said/she-said saga — and all the sources anonymous. We’re eagerly awaiting more details.

Katya Ryder | School teacher, earned National Board Certification in 2013 I have a passion for science and majored in biology at Arizona State University, where I also earned teaching certificate and Master of Education


MA-Sen: 150 Conservative Bloggers Fan Out, Looking for Scandals

BOSTON -- The mysterious Election Journal blog, which first released the infamous 2008 video of two bumbling New Black Panther Party members waving nightsticks

MA-Sen: 66 to 19

BOSTON -- That, via Alex Isenstadt and Josh Kraushaar, is the number that defined the Massachusetts Senate race more than anything else. From the primary

MA-Sen: A Text Message From Scott Brown

BOSTON -- Having signed up for Scott Brown’s text message service for election day, I just got this text: Are you about to have lunch? It’s a great time to

MA-Sen: Loyal Democrats Grouse About Coakley

BOSTON -- A little while after noon, a steady crowd of Democratic voters streamed into the Cathedral High School Gymnasium to cast votes for their party’s

MA-Sen Photos: ‘Paint the Town Red! Croakley’s Dead!’

Below are some photos of yesterday’s People’s Rally in Worcester, the rally that Brown held to counter-program the Obama rally in Boston. The crush of

MA-Sen: Brown Wins

BOSTON -- At 9:20, the first rumors of Scott Brown’s victory in the Massachusetts Senate race started to work around the room. A moment later, Doug Flutie

MA-Sen: Out-of-Staters for Brown

BOSTON -- A surprising discovery at yesterday’s People’s Rally in Worcester was just how many people had traveled into the state to assist, in whatever way,

MA-Sen: Republicans Celebrate Coakley’s Gaffes in Worcester

WORCESTER, Mass. - By the way, said Curt Schilling. One more thing. I am not a Yankees fan. The overflowing crowd at Worcester’s Mechanics Hall on

Net Investors Bullish on Palin’s Prospects for Staying on Ticket

Just for fun, the Internet prediction Website Intrade has opened a contract on whether Alaska Gov. Sarah Palin will be withdrawn as McCain’s running mate.

© Copyright 2021 The Washington Independent All Rights Reserved

Terms & Privacy |