Chrysler Refused Loan Over Limits on Executive Pay

05/21/2009 05:12 am ET | Updated May 25, 2011
  • David Cho and Peter Whoriskey washingtonpost.com

Top officials at Chrysler Financial turned away a $750 million government loan because executives didn't want to abide by new federal limits on pay, sources familiar with the matter say.

The government had been offering the 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 vital lender to Chrysler dealerships and customers.

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