Alternate headline: Banks, Treasury Play Chicken on Chrysler Deal
(NEWSER) - A group of big banks balked at the Treasury’s proposal that they slash 85% of Chrysler’s debt, the government’s second such request. Instead, in what the Wall Street Journal calls a “significant act of brinkmanship” as an April 30 deadline looms, the banks, including bailout recipients Citigroup, JPMorgan, Goldman Sachs, and Morgan Stanley, offered to cut just 35%—to $4.5 billion rather than $1 billion—and asked for a 40% equity stake in return. More»
