Blumenthal, a Democrat, said he believes state law does not protect bonuses in the same way it protects regular wages under employment contracts.
"We're writing today to the Fed that in light of the disclosure yesterday that another $230 million will be paid in March of next year to the employees there this year," Blumenthal said. "We are urging the Fed take prompt and aggressive action to protect taxpayer money going to bonuses that seem excessive and unnecessary."
AIG officials Thursday defended to lawmakers in Washington recent bonuses reported to total $165 million to perhaps as much as $218 million, which were funded with money from the $170 billion federal bailout of the company. Officials said the bonuses were paid in accordance with terms of employment contracts.
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