- The Washington Times - Thursday, March 26, 2009

HARTFORD, CONN. (AP) - Connecticut legislators will be asking an executive from American International Group Inc. why the insurer handed out $165 million in bonuses after receiving federal bailout money.

The legislature’s Banks Committee has a hearing Thursday afternoon and plans to question Stephen Blake, head of human resources for AIG’s financial products division in Wilton, Conn.

Lawmakers took up the issue because officials at New York-based AIG say they paid the bonuses partly because of a Connecticut law. That law allows employees to sue for twice the full amount of contractually owed wages and lawyers’ fees, if the employer refuses to pay.

State Attorney General Richard Blumenthal says AIG was wrong to cite Connecticut wage laws in justifying the bonuses.

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