Can Dick Blumenthal Make AIG Execs Look Like Sympathetic Characters?

 Given a chance to issue a press release, Attorney General Richard Blumenthal today asked the federal government to block the payment of $100 million in so-called retention bonuses to those AIG Financial Services employees in Wilton.

 Blumenthal sent a letter to federal Special Master Kenneth Feinberg, who has jurisdiction over executive compensation at bailed-out companies.

“I am writing to urge you to prohibit AIG from paying $100 million in employee bonuses,” Blumenthal said in a follow-up news release. “AIG still reportedly owes federal taxpayers $124 billion — and should therefore be barred from company from paying a penny of bonus until it repays its massive loan.”

 Blumenthal, you recall, is running for the US Senate seat being vacated by Chris Dodd, who will live forever as “Doodles” among certain state Capitol reporters.

 Anyway, the Blogster just got a call from Gary Phelan, a Stamford attorney with the New York firm of Outten & Golden, representing some AIG employees. “They are clearly entitled to it under Connecticut law,” he said. “Under the Connecticut Wage Statute, AIG is clearly obligated to make these retention payments. It is also an enforceable contract under Connecticut contract law. Attorney General Blumenthal makes no attempt to explain – because he can’t – that these payments should not be made in March.”

 Some AIG employees collected $100 million in bonuses today as part of a reduced-benefits deal where they took 10 percent-to-20-percent less than they were entitled under their retention contracts. An additional $136 million is scheduled to be doled out in March.