I have only been able to test this with Apache 2.2.11 running on Free BSD but I would assume it works across all http server requests.
The issue occurs when you visit a site that has an http password protected directory. If you save the login credentials; username and password the password is represented in Chrome's prompt box as an astrix for each character. ie: If you password was "monkey" you would see ******

Upon the next visit to the site with a new session Apache will prompt you for the credentials again to login. Previously you had Chrome save this information so Chrome will populate the username and password fields, again keeping the password with an asterix for each character. However, the exploit happens when you copy the entire password and paste it into another application, say, notepad. What is saved to your clipboard is not a series of asterix's but the actual ASCII password.

This exploit currently occurs in build 1.0.154.43 of Chrome. If you've stumbled across this entry and would like Google to be informed of this issue while you yourself run Chrome please do the following:
1) Click the 'Page' icon in the top right; on the right side of the address bar
2) Click 'Report bug or broken website'
3) Select 'Other problem'
4) Clear out information for 'Page URL' and uncheck 'Send screenshot of current page'
5) Explain the bug in the description or alternatively link them to this post.
I really don't see the exploit in this one. If you're worried that someone else might copy paste your password, what are you doing saving it anyway? It's not like they need to copy and paste it when they want to login as you, and that's the whole point of seeing someone's password.
IMO it's not an exploit, nor a real problem. The only thing I might be worried about is how the password is stored.
Take this into account; html form passwords stored when using the same method as this copies nothing to your clip board, not even the asterix'.
If you can copy the password that means the only thing Chrome is doing is obfuscating the text output but not what's actually stored when it pre-populates the field.
If you want any real security, you don't store the password on your computer, period. Passwords are stored for your convenience. Like I said, if people are on your account, they can already access these websites, therefor it has no point securing these passwords further. Anyone working under your account is expected to be you. If that is not the case, you shouldn't store passwords, that's just irresponsibility on your behalf.
I just equally easily accessed my firefox passwords. Ok, I looked them up in the preferences of Firefox, but I still didn't have to do anything special to find them. In fact, I just randomly guessed where I could find them, it was very easy.
I suspect that this is the same behavior in safari, except we don't notice because (at least on my safari) I can't copy from the password box.