Connecticut Attorney General's Office

Press Release

Attorney General Disagrees With Fed Chair Statement That CT LAW Prevented Lawsuit To Block AIG Bonuses

March 24, 2009

"I respectfully disagree with Federal Reserve Chairman Ben Bernanke's statement today that Connecticut law prevented a Federal Reserve lawsuit to block AIG bonuses.

"The Federal Reserve never contacted me or my office concerning the applicability of the Connecticut wage law to the AIG bonuses. If the fed had called, we would have given the green light for litigation blocking these unconscionable bonuses.

"My office has reviewed AIG's claim and state law, concluding that these bonuses were not wages under the Connecticut Wage Protection statute. AIG used this joke of a justification to squander $218 million of taxpayer money, rewarding monumental failure."