It is quite striking to watch Sen. John McCain take a downright populist tone as he champions stronger regulation as several financial giants teeter on the
“„In 2002, McCain introduced a bill to deregulate the broadband Internet market, warning that “the potential for government interference with market forces is not limited to federal regulation.” Three years earlier, McCain had joined with other Republicans to push through landmark legislation sponsored by then-Sen. Phil Gramm(Tex.), who is now an economic adviser to his campaign. The Gramm-Leach-Bliley Act aimed to make the country’s financial institutions competitive by removing the Depression-era walls between banking, investment and insurance companies.
“„That bill allowed AIG to participate in the gold rush of a rapidly expanding global banking and investment market. But the legislation also helped pave the way for companies such as AIG and Lehman Brothersto become behemoths laden with bad loans and investments.
“„McCain now condemns the executives at those companies for pursuing the ambitions that the Gramm-Leach-Bliley Act made possible, saying that “in an endless quest for easy money, they dreamed up investment schemes that they themselves don’t even understand.”
“„He said the misconduct was aided by “casual oversight by regulatory agencies in Washington,” where he said oversight is “scattered, unfocused and ineffective.”
“„“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…
“„“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.”
“„“I was the chairman on the Senate Committee on Commerce, Science and Transportation for six years,” he told reporters aboard his “Straight Talk Express” campaign bus amid Monday’s market meltdown. “That’s the committee that oversights our economy — transportation, science, telecommunications, airlines — all of the factors that drive our economy.”
“„“Well, at this hour, when you look at the situation, it is still muddled and unclear,” [McCain campaign adviser Steve] Schmidt told The Associated Press. “But it is clear that the system has been corrupted, that there has been systemic failures, that the economy has been damaged by greed and avarice, and the broken institutions between Washington and New York have now conspired in a way that has put the American economy in crisis.”
“„“I don’t think anyone who wants to increase the burden of government regulation and higher taxes has any real understanding of economics and the economy and what is needed in order to ensure the future of this country.” [McCain Town Hall in Inez, Kentucky, 4/23/08]