AIG Use Conn. Law As Bonus Scapegoat

iVillage Member
Registered: 03-18-2000
AIG Use Conn. Law As Bonus Scapegoat
Wed, 03-25-2009 - 10:51am

Bernanke, AIG Use Connecticut Law As Bonus Scapegoat, Lawyers Say

Complete article at link...

http://www.courant.com/news/politics/hc-aig-bernanke-connecticut.artmar25,0,807596.story

March 25, 2009
Federal Reserve Chairman Ben Bernanke would have pursued a lawsuit to block the AIG bonuses, he told Congress on Tuesday — but Connecticut's labor law prevented him.

In Connecticut, public officials and employment lawyers have been disputing that notion since last week, when AIG itself cited the state statute.


  

>" Connecticut Attorney General Richard Blumenthal said Tuesday that he "respectfully disagrees" with Bernanke's statements, adding that the Federal Reserve never contacted his office to discuss Connecticut's laws. Blumenthal has maintained that the bonuses are not wages and are thus not protected by the Connecticut Wage Act.

"With all due respect, he is one of the world's most eminent and distinguished economists, but he probably doesn't have an intimate knowledge of Connecticut's wage statute," Blumenthal said. "My hope is that he may now correctly understand the Connecticut law and that he may now work with my office in a common effort to recover the excessive payments.""<       




Edited 3/25/2009 4:54 pm ET by libraone

 


Photobucket&nbs