Treasury Turned Down Chrysler Financial Funds Request in Executive Pay Dispute
EmailABC News’ Bianna Golodryga, Jay Shaylor, Charlie Herman, and Matthew Jaffe report: The Treasury Department turned down Chrysler Financial’s request for additional government funds because company executives refused to sign waivers for legal claims relating to changes in executive compensation restrictions, a government watchdog has revealed.
"As Treasury reported to us, Chrsyler Financial sought additional funding," Neil Barofsky, Special Inspector General for the Troubled Asset Relief Program, told ABC News Monday. "They had basically used up the $1.5 billion that was lent to them…and came back and asked for more money."
"Treasury asked as a condition that the top 25 executives sign waivers reflecting the new executive compensation restrictions that were in the stimulus package. And Chrysler Financial executives refused to sign the waivers. So Treasury, in response, declined their request for additional funding."
On Tuesday morning, Barofsky’s office will release a quarterly report on the $700 billion TARP.
A Treasury spokesperson says the Auto Task Force continues to carefully monitor "financing situations for both GM and Chrysler."
"Unlocking credit and helping consumers get access to affordable auto loans is an important component of our efforts to stabilize the financial system," a spokesperson for Treasury told ABC News in a written statement. "As part of that effort, the Auto Task Force continues to monitor closely the financing situations for both GM and Chrysler. This is an issue that Chrysler and its stakeholders will need to address as part of this process and any potential deal."
"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," a Chrysler Financial official said. "As such, executives have not been presented with any new demands with regard to executive compensation. As a TARP recipient, the Company remains in full compliance with current executive compensation requirements."
- Bianna Golodryga, Jay Shaylor, Charlie Herman, and Matthew Jaffe
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Funny – other networks are reporting that Chrysler turned down the loans – not the other way around.
Posted by: dl | April 20, 2009, 6:35 pm 6:35 pm
this is a bunch of baloney, crysler was told if they didn’t join with fiat a company from anther country no less they wouldn’t get the bail out money, blackmail plain and simple
Posted by: donttaxmeman | April 20, 2009, 6:44 pm 6:44 pm
Good. They are absolutely impossible to work with in this economy! I lost my job in Jan and have been working w/ all creditors on reduced payments so I can keep paying them the money I owe. Chrysler refuses to modify my car payment at all. They would prefer I give them the car back? Of course I don’t want to – wish I could and not suffer for it b/c of how they act.
I am barely hanging on with no bail out in sight – so let Chrysler stay that way too!
Posted by: Lou | April 20, 2009, 7:30 pm 7:30 pm
donttaxmeman – you’re confusing Chrysler Financial with the bailout. Read more!
Posted by: dl | April 20, 2009, 7:32 pm 7:32 pm
Good Job Bob Nardelli! Practicing running Home Depot in the ground on there dime and walking away with the till, 240 million has paid off quite handsomly but which company is on y0our radar next if Capitalism even still exists?
Posted by: sybase46 | April 20, 2009, 7:33 pm 7:33 pm
Screw them!!!!
Posted by: sisterdearest09 | April 20, 2009, 7:47 pm 7:47 pm
Give me a break! These crooks don’t deserve another dime. I am now on the side of let them go bankrupt!
Posted by: Kris | April 20, 2009, 7:55 pm 7:55 pm
It’s not blackmail, they don’t have to take the money. Chrysler did it to themselves, wind em down, sell the “jeep” brand and liquidate the rest. FYI – Chrysler quality is worst in industry, even worse than Fiat. Let Capitalism reign, let them fail. What part don’t you fat cats get? Next in line – GM, start your packing boys! I’d rather pay my tax dollars to the 1 in 10 Americans that will be on unemployment than give my money to the unions and execs.
Posted by: californiagirl4u | April 20, 2009, 8:18 pm 8:18 pm
Gee, it seems like when they are denied the funds, all of a sudden the company seems to come up with the money anyway, so my question is, Do these companies really need all of this money in the first place or is this an easy money making deal for the auto industry?
Posted by: Kathy | April 20, 2009, 8:19 pm 8:19 pm
KEEP TAKING IT FROM THE TAX PAYERS WE SEEM TO NOT NEED THE MONEY
Posted by: whitetornado | April 20, 2009, 8:29 pm 8:29 pm
Chrysler was gutted by Daimler and has really just been a shell. Its only real holding is Jeep, which is the only brand worth saving. Chrysler has a nice dowry for Fiat; I see the deal happening. If it doesn’t then Cereberus can take it on the chin, that’s the choice they made. Chapter 11 for Chrysler isn’t as big of a deal and, again, the Jeep brand will survive.
Posted by: 1percenter | April 20, 2009, 8:30 pm 8:30 pm
GOOD JOB!!! These big corporations have gotten just too habituated to the various kinds of handouts that Republicans have been giving them over the past 28 years: obscene tax “relief”, government contracts with little oversight, favorable (lack of) regulation, and most recently just piles of cash heaped on in much the manner that his adoring disciples laded Bhagwan Shree Rajneesh with 27 Rolls Royce automobiles in the 1980s.
The time has come to be called to account.
Posted by: Jordan | April 20, 2009, 8:30 pm 8:30 pm
Boy I am really amazed at the loyalty of those greedy &*^%$( at the top. They would rather let the company go down and all those workers lose their jobs than give up any of their outrageous compensation. And look at what a good job they have done for the company and shareholders.
Posted by: dale | April 20, 2009, 8:38 pm 8:38 pm
It’s just great that all this TARP money, bailouts for WallStreet, AIG Insurance money, etc. etc. etc.
I have “Under Employed” for almost a year now and had 4 Feet of Raw Sewage backup into my house from the City and Not One Representative from the Federal Gov’t to our Local City Government has said they could help after the City’s Insurance and my own Insurance Denied me for compensation for my losses. Hire an attorney everyone says, we have to worry about the big executives and big business that are killing the economy.
The little people do not matter in this Economy.
I ask, would any of the Big Exec’s have to work again in their lives if the company they are running went bankrupt? Nope.
Where’s my help?
http://www.gilbertsewer.com
Posted by: mike | April 20, 2009, 8:41 pm 8:41 pm
I say let Chrysler go out of business. their cars suck anyway. Jeep will live on past Chrysler like it did AMC.
Posted by: Josh from South Carolina | April 20, 2009, 8:50 pm 8:50 pm
“A Culture of Entitlement ” Dinosaur Thinking !
Posted by: wall1786 | April 20, 2009, 9:09 pm 9:09 pm
Has everyone forgotten that Chrysler was already once bailed out ? This just before the merge with Daimler . What I’ld really like to know , is what happened to a multi-billion $$$ contract sent to India for the making of auto parts there by Chev/Ford/Chrysler ? This that preceded the lay-off of 1000s of Americans from their jobs and apparently precedes these companies request for bail-out money . Has this been declared an asset ? or , is it just a nestegg for those who did their best to ruin one of America’s top industries ?
Posted by: bar | April 20, 2009, 9:11 pm 9:11 pm
Jeep has been a work horse for years, GM got in with the Hummer junk. The old jeeps still keep om running. The top dogs would rather keep their fat money coming in to add to what they have already taken. Hell, we could live very well on 2 mill, let alone 25 or 40. I hate to say it because our auto industry has helped to build our nation with jobs and all. But not with our best intrests at heart.
Posted by: harley93 | April 20, 2009, 9:18 pm 9:18 pm
I don’t trust ABC News! Chrysler turned down the loan funds! ABC and Washington politicians all lie!
Posted by: 312Capri | April 20, 2009, 9:22 pm 9:22 pm
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Posted by: Diva314 | April 20, 2009, 9:53 pm 9:53 pm
Let em all go bankrupt! They should not have gotten a dime to begin with.
Posted by: davrob1 | April 20, 2009, 9:57 pm 9:57 pm
I don’t feel much for any of the auto makers I am a widow live on 17,000.000 per year can’t afford my meds or my isurance, many medical problems Medicare don’t pay much of anything,like the leg brace I am wearing to avoid a knee replacement it was a prescriptoin from an ortopedic dr so was my walker but don’t think it will get paid either but have not yet received that bill I have went to cheap every thing to stay afloat , I live from month to month in hopes of income that will help ?all I do is pay as fast as I get it done not much of a fun way to live I am too rich to be amedicade person my car is only 17 years old I never expect to own any other and I ampossitive orthers are as bad or worst of than I am none of the FAT CATS will reited this way I am diabeled unale to bring income so goes my life
Posted by: dixie | April 20, 2009, 10:04 pm 10:04 pm
I bet you didn’t know we had third graders running these companies……oh wait……maybe that’s why there in the shape they are, come to think of it, that’s probably it!
To turn down financial assistance that would help keep your company from going under on the grounds that you do not like the fact/condition that you will no longer be able to commit legal rape is as asinine as it sounds!
The ONLY thing more asinine is to keep/allow these brain surgeons to keep running the company, or ANY company for that matter.
Posted by: Darryl the Contractor | April 20, 2009, 10:05 pm 10:05 pm
yet more proof that not one dime in bailout money should have ever been spent. as usual, our government steals from us and gives to whoever they please. they are all criminals. every single one of them.
Posted by: mike | April 20, 2009, 10:10 pm 10:10 pm
PLEASE put Chrysler out of its misery and just declare them un-American and bankrupt them. The products suck. The management obviously sucks. And the fact that they had the gall to request more funding and more compensation for the management is proof enough that they are criminals. Close the business, send the management to jail. Screw’em. They design and manufacture garbage anyway.
Posted by: Tax Payer | April 20, 2009, 10:20 pm 10:20 pm
Yes – Chrysler turned down the loans because they declined to adhere to the requirements, which included compliance with executive compensation. So you can say it however you want. The govt said, “welp, if you want funding you’ll agree to our terms.” Chrysler said, “no thanks, we’d rather go out of business.”
Does it matter? The real story line is Chrysler execs had expectations of taking MORE income because if they didn’t then the compensation guidelines would not have been an issue. Far as I’m concerned they actually owe charge-backs because they have not performed, have not created shareholder value, and provide no value-added whatsoever to the enterprise.
Posted by: Tax Payer | April 20, 2009, 10:24 pm 10:24 pm
In Canada the auto workers at Chrysler are willing to “sacrifice” their pay increases for the next two years! They have graciously agreed to continue working for a pay-and-benefit package of $76/hour and refuse to reduce this to the $57/hour rate at Toyota and Honda. There are millions of hard-working people who would be thrilled to have a pay package at 50% ($38/hour). Let Chrysler, it’s greedy and incompetent executives and the union workers fade into the sunset.
Posted by: PeteM | April 20, 2009, 10:25 pm 10:25 pm
The workers at Chrysler in Canada have graciously agreed to sacrifice their pay increases for the next couple of years! Let Chrysler, its executives and its union workers fade into the sunset.
Posted by: PeteM | April 20, 2009, 10:30 pm 10:30 pm
ABC’s own report says Chrysler turned down the funds, but their headline indicates the Messiah’s minions bravely protected the taxpayer by denying same. What lou8sy reporting ! ABC still in his majesty’s thrall !
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Posted by: Charles | April 21, 2009, 7:10 pm 7:10 pm
Chrysler Financial is one of the most corrupt and disorganized company. Chrysler Financial Managers are majority of male chauvinists. They are lazy, arrogant, very racist, favoritism is wide spread and promotion is based on how is the best yes man of all. I am happy that world can see what I see everyday. Hope the government can see how these big greedy corporations having be operation for centuries. Govt. should not give any hard working tax payors money to these executives. They don’t want to give up there jets and million dollars bonus but willing to let the company fail. There should be some laws to protect common man from these greedy – money hungry – power crazy exeuctives. Wake up everyone !!!
Posted by: Chrysler Financial | April 21, 2009, 10:09 pm 10:09 pm
FIAT – Please buy this dinosaur and take it off of our hands!!!
Posted by: gwen | April 21, 2009, 11:37 pm 11:37 pm
Honestly, some people don’t know anything about vehicles. Chrysler has some of the best cars around. Anyone who says they are crap, clearly hasn’t driven an import honda or toyota – now there’s real crap !
Posted by: Amber | April 25, 2009, 1:12 pm 1:12 pm
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Posted by: Alex | May 31, 2009, 7:45 am 7:45 am