more bank trouble

[Danzig]

http://www.msnbc.msn.com/id/48313448...s-us_business/

Many TARP banks used federal loans to repay taxpayer debts
Watchdog's report also highlights lack of 'rigorous regulation' of bailed-out insurer AIG


Inspector general: AIG still lacks regulation
In addition, the insurer American International Group, which received the largest TARP investment, still lacks "effective, comprehensive, and rigorous regulation," according to a portion in the report focusing on AIG.

"I think most people are going to be very surprised to learn that for the last two years, AIG has had no consolidated regulator over its financial business," Romero told Dow Jones Newswires.

Taxpayers have now lost $5.5 billion on its investment in AIG, Wednesday's report said. The government's remaining investment in the company is $30 billion, which amounts to about 61 percent of the company's common stock, which is down from the initial $180 billion.