McCain: SEC Chairman Should Be Fired

John McCain said that the SEC was to blame for our current financial crisis, condemning the organisation for allowing speculators and hedge funds to run wild. So he called for the firing of SEC chairman Christopher Cox and proposed creating a mortgage and financial institutions trust that would work with private institutions and regulators to identify problems.

NY Times’ The Caucus blog: Senator John McCain said [in Cedar Rapids, Iowa] Thursday that he believed that the chairman of the Securities and Exchange Commission should be fired and that the government should create a new trust to help troubled institutions remain solvent.

Mr. McCain faulted the Securities and Exchange Commission, saying it had “kept in place trading rules that let speculators and hedge funds turn our markets into a casino” and said that its chairman, Christopher Cox, should be fired.

“The chairman of the S.E.C. serves at the appointment of the president and in my view, has betrayed the public’s trust,” he said at a rally in an airport hangar here. “If I were president today, I would fire him.”

Mr. McCain also called for the creation of a new entity to try to keep institutions solvent and that would sell off the troubled assets of ailing financial firms. “I am calling for the creation of the mortgage and financial institutions trust – the M.F.I.,” he said. “The priorities of this trust will be to work with the private sector and regulators to identify institutions that are weak and take remedies to strengthen them before they become insolvent. For troubled institutions this will provide an orderly process through which to identify bad loans and eventually sell them.”

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