WKOW 27: Madison, WI Breaking News, Weather and SportsWisconsin Senators join criticism of AIG bonuses

Wisconsin Senators join criticism of AIG bonuses

KENOSHA (WKOW) -- Wisconsin Senator Russ Feingold added to the chorus of criticism of planned bonus payments to executives of insurance giant AIG.

During a listening session in Kenosha Monday, Feingold told Wisconsin residents some way should be found to rescind the AIG contract bonuses, given the firm's losses and receipt of billions in federal bail-out funds.

Feingold also said AIG's use of federal money deserves more scrutiny.

"Some of it is going to foreign banks,  Swiss banks, French banks, but we don't know where the rest of the money is going,"   Feingold said.   "Is it going to these hedge funds which were part of this whole mess?"

Wisconsin Senator Herb Kohl said the Obama administration should everything in its power to retrieve "misspent bonuses."

UW-Madison Grainger School of Business economist Mason Carpenter told 27 News, even if AIG contract bonuses cannot be rescinded, new federal legislation should be enacted to more tightly require such bonus payments to reflect company performance, if a company receives federal funds.