Regional banking issue Comerica (CMA) is in focus today, after announcing last night that it will sell $800 million in common stock in order to repay its debt to the U.S. government. Under the terms of the Troubled Asset Relief Program (TARP). Comerica owes Uncle Sam about $2.25 billion. At this point, the Dallas-based bank is among the few remaining financial institutions yet to repay its TARP debt.

This morning, Comerica priced its common stock offering at $35 per share, representing a discount to Monday's close at $36.29. The shares have quickly backpedaled as a result, slipping below recent support at their 10-day and 20-day moving averages.

The bailouts of late 2008 and 2009 have cost the American taxpayers $61 billion, according to the Treasury Department, but the banks aren't to blame this time. The auto manufacturer bailout, which includes Chrysler and General Motors (GRM), has cost the country more than $30 billion, with American International Group (AIG) consuming another $30 billion.

Meanwhile, Bank of America (BAC) has already made good with the government, and several banks -- such as Capital One (COF), JP Morgan Chase (JPM) and TCF Financial (TCB) -- only have to clean up situations regarding the warrants they've issued. And interestingly, the losses from the bailouts on AIG and auto manufacturers are being offset by profits from the bank bailouts, which could generate additional funds of up to $19.5 billion.

American International Group (AIG) is a step closer to paying back the U.S. government. The insurer has announced that it's planning to float American International Assurance on the Hong Kong stock exchange. A date hasn't been selected yet, but the decision isn't much of a surprise, given that AIG moved it into a special unit, a signal that some sort of liquidity event was on the way.

According to Robert Benmosche, the company's CEO, "The planned listing is in the best interests of policyholders, distribution partners, AIG shareholders and US taxpayers." He continues to say that AIA's roots are in Asia, which made a Hong Kong listing "a natural choice." The timing, according to AIA president and CEO Mark Wilson will depend on marketing conditions and regulatory approvals.

As planned, Bank of America (BAC) sold securities to raise the capital it needs to settle with the government. The company announced this week that it would repay the $45 billion in bailout money it received under the Troubled Asset Relief Program (TARP). Bank of America raised $19.3 billion, slightly more than the $18.8 billion it originally sought.

Bank of America sold 1.286 billion "common equivalent" securities, which are comprised of a depositary share and a warrant. The security is convertible into one common share of Bank of America, upon approval by shareholders. The rest of the money will come in the form of cash.

Bank of America (BAC) surprised the market on Wednesday by announcing that it would repay the $45 billion in TARP money it received over the next few days. This gives the company much more flexibility in compensating its employees, but it could leave the bank exposed to future economic shocks.

CEO Kenneth Lewis, who's expected to retire at the end of the month, said he wanted to take care of this before leaving the firm. This decision comes at a great time for the Treasury Department, which has been feeling the heat for committing taxpayer resources to a dicey problem without seeing much progress yet.

The U.S. Treasury is receiving a bit of pressure from the internal watchdog that is overseeing the U.S. government's financial bailout. The special inspector, General Neil Barofsky, wants more information from the banks that received TARP funds, and he has his own bank survey to prove it can be done.

According to Barofsky's personal study, more than 80% of the banks responding to his survey said the TARP money they received was used for loans or to avoid reduced lending. Barofsky also said that fewer than a third of the 360 banks he surveyed said their lending levels would have been lower without the TARP funds.

My biggest issue with the TARP money was that there was no requirement for the banks to track the money, or to report what the money was used for -- despite assertions that the money was to be used to increase loans, one way or the other. There has to be some way to track this, and Barofsky has proven this. Of course, this is being dismissed by Assistant Treasury Secretary Herbert Allison (the top official in charge of the program for the Treasury) because, "it is not possible to say that investment of TARP dollars resulted in particular loans, investments or other activities by the recipient." The Treasury does conduct its own survey, which reported that outstanding loan balances were flat in May.

As citizens and taxpayers, we should know what the money is spent for -- but Barofsky did note that the banks did not quantify the amount of new lending or the difference in lending from the bailout funds. However, if (as Barofsky asserts) the banks budget how they would use TARP money, then why wouldn't we be able to know more? It is our right -- at least last time I checked.

Following a meeting with CEO Jamie Dimon on Feb. 6, Citigroup analyst Keith Horowitz believes that JPMorgan Chase & Co. (NYSE: JPM) could be among the first banks to repay its indebtedness under the government's Troubled Asset Relief Program (TARP).

"Clearly there is a risk of future government interference, which is why we believe management would like to get out," noted Horowitz. However, while Dimon thinks banking industry returns will be compressed during the intermediate term due to the government's involvement, he doesn't see any significant changes to JPMorgan's long-term outlook.

Options players, start placing your bailout bets: Nasdaq OMX Group (NASDAQ: NDAQ) announced today that it will launch options trading on its Government Relief Index (NASDAQ: QGRI) effective Monday. The 3-week old Government Relief Index was constructed to track the performance of companies that have received at least $1 billion in government funds under the Troubled Asset Relief Program (TARP) or similar bailout endeavors.

Since its launch on January 5, the QGRI has blazed a steady path lower, tumbling 36.8%. "When you have volatility and a direction, you start to see there's an opportunity to put a product on it that allows investors to benefit from the movement," said John Jacobs, Nasdaq's executive vice president, in comments to Reuters. (Is it just me, or is Mr. Jacobs subtly recommending put options on the Bailout Bunch?)

If you do decide to take a speculative gamble on the slipping Government Relief Index, you'll be wagering on such high-profile bailout names as Citigroup (NYSE: C), General Motors (NYSE: GM), Bank of New York Mellon (NYSE: BK), and Goldman Sachs Group (NYSE: GS). Overall, it looks like the QGRI might be traders' best opportunity to turn a profit on their steadily depreciating taxpayer investments. How's that for cold comfort?

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.