WASHINGTON--The Government Accountability Office has launched a probe into whether American International Group's federal funding lifeline is providing it with an unfair advantage in the pricing of commercial insurance products.

The probe was launched at the request of Rep. Paul Kanjorski, D-Pa.., chairman of the Capital Markets Subcommittee, and Rep. Spencer Bachus, R-Ala., ranking member of the parent House Financial Services Committee. The pair disclosed their request on Friday night, several hours after the GAO announced its plans.

In addition to a look at market competition, they said they had also asked the GAO to investigate what the likelihood is that the government will recoup the billions it has loaned to AIG in exchange for a 79.9 percent government interest.

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