AIG reported a $1.8 billion quarterly profit as Maurice "Hank" Greenberg, the company's former long-time über boss, paid $15 million to the SEC to settle (unrelated) fraud charges.

Quoth the WSJ:

We've got $180 billion (plus or minus a "Cash For Clunkers" program) invested in them, so I guess that's progress.


Meanwhile, Fannie Mae and Freddie Mac's chief regulator, James Lockhart, quit Wednesday amid news (via the

Washington Post

) that the Obama Administration is considering restructuring the two giant government mortgage companies using the "good bank, bad bank" model. That means all the toxic assets would be stripped out and given to a new "bad Freddie" while the good assets would remain with the companies, which is shareholder-owned but backed by $400 billion of taxpayers' assets.

Fannie and Freddie together hold about 73 percent of all home mortgages in the U.S. Together, the companies have tapped about

--making them about a half of one AIG. This is less than the $200 billion I

, and I stand by that prediction today: we're a little less than half done paying for Fannie and Freddie's mess.

Fannie reported a $14.8 billion quarterly loss Thursday and asked for another $10 billion from Mama Bernanke.

All this during a week when the feds

a major independent mortgage funder (one which, incidentally, fed Freddie some of its bad loans), and yet news commentators everywhere are talking about the housing bottom and the end of the recession.

I'm not feeling it.