McCain on AIG: We Need Strong and Effective Regulation

John McCain called for more government regulation of the financial markets in the wake of the federal bailout of insurance giant AIG.

McCain, who has been a proponent of financial market deregulation in the past, blamed the recent financial crisis and the need for government intervention on “failed regulation” and a “casino culture” on Wall Street. His criticism of failed government policies is similar that of Barack Obama’s. The Democrat, however, explicitly blamed President Bush and said that McCain was like his fellow Republican.

Read McCain’s full statement below.

“Today, the government was forced to commit $85 billion to stop the collapse of AIG, another in a growing series of events that includes Bear Stearns, Lehman Brothers, Fannie Mae and Freddie Mac. These actions stem from failed regulation, reckless management, and a casino culture on Wall Street that has crippled one of the most important companies in America. The focus of any such action should be to protect the millions of Americans who hold insurance policies, retirement plans and other accounts with AIG. We must not bailout the management and speculators who created this mess. They had months of warnings following the Bear Stearns debacle, and they failed to act.

“We should never again allow the United States to be in this position. We need strong and effective regulation, a return to job-creating growth and a restoration of ethics and the social contract between businesses and America. Important questions remain to be answered by Wall Street. Did executives mislead investors and regulators about the severity of the problem? We must investigate whether or not there was misrepresentation on part of the company executives. If there was, there must be penalties. We need to change the way Washington and Wall Street does business, and as President I will.”