A pair professors expressed concern that it would not be proper for banks who have received government bailout funds to buy the same type of toxic assets which have caused them problems previously as part of a government public-private investment program.

I'm worried about the following scenario: You and I have troubled assets, I buy assets from you, you buy them from me, and at the end of the day it ends up suspiciously like you bought assets from yourself, said Lawrence White, a professor at New York University's Stern School of Business, according to Reuters.

Professor Wayne Shaw at Southern Methodist University’s Cox School of Business says strict rules would be needed to avoid risk.

“Without very strict regulation you're potentially creating big risks by allowing banks to buy toxic assets with house money,” he said. “It's a terrible risk.”

One lawmaker is already proposing new legislation to keep companies from “gaming” the program, the report states.

If banks “are colluding to swap assets at inflated prices using taxpayers’ dollars, the bailout cycle has sunk to a new level of absurdity,” said Rep. Spencer Bachus, who sits on the House Financial Services Committee.

Dan Alpert, an investment banker with Westwood Capital LLC believes that while there may be concerns “theoretically there is no reason to keep [banks] out of the market. Their asset management arms have considerable asset aggregation capabilities.”