The US Treasury has announced that it will lose $1.6 billion on a loan it made to Chrysler early last year. Congressional auditors say the American taxpayers could lose upwards of $34 billion in loans to both Chrysler and GM.
The Treasury Department is ordering pay cuts for top executives at the seven big companies that have yet to pay back government bailout cash. The US public has balked as such firms have handed out huge bonuses.
Although CEO Ken Lewis agrees to a $0 pay package, don't expect a wholesale revolution in executive compensation on Wall Street.