Benzinga's Political Roundup (AIB, IRE, USO)

German Chancellor Angela Merkel lost a key regional election yesterday, which would weaken her authority going forward. Ireland's government wants to put losses on debt holders of Irish banks such as Allied Irish (NYSE: AIB) and Bank of Ireland (NYSE: IRE) to help reduce the burden on taxpayers from the banking crisis. Oil prices (NYSE: USO) are sliding on news that Libyan rebels retook control of two key port towns.