Addressing the current Wall Street crisis before an audience in Cedar Rapids, Iowa, Sen. John McCain announced a new proposal for preventing the future collapse
“„“We cannot wait any longer for more failures in our financial system. Structures like the Resolution Trust Corp., that dealt with the failed savings and loan industry, were designed to clean up the system and worked. Today we need a plan that doesn’t wait until the system fails. I am calling for the creation of the mortgage and financial institutions trust — the MFI. 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.
“„This will get the Treasury and other financial regulatory authorities in a proactive position instead of reacting in a crisis mode to one situation after the other. The MFI will enhance investor and market confidence, benefit sound financial institutions, assist troubled institutions and protect our financial system, while minimizing taxpayer exposure. Tomorrow I will be talking in greater detail about the crisis facing our markets and what I will do as president to fix this crisis and get our economy moving again.”
“„“We saw today an indicator of the kind of manager John McCain intends to be as president, calling, for example, that had he been president, he would immediately demand the resignation of any Cabinet agency, particularly the SEC commissioner who had a track record that did not meet the standards that John McCain felt were appropriate.”