On Thursday, Senator John McCain said in Cedar Rapids, Iowa that he believed the chairman of the Securities and Exchange Commission should be fired and the government should establish a new trust to help troubled institutions remain solvent.

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

McCain is quoted as saying, “the chairman of the S.E.C. serves at the appointment of the president and in my view, has betrayed the public’s trust. If I were president today, I would fire him.”

McCain made a call for the creation of a new entity to attempt to keep institutions solvent and that would sell off the troubled assets of ailing financial firms. It would be named the Mortgage and Financial Institution’s Trust – the M.F.I. The purpose of the trust would 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 ailing institutions this will provide an orderly process through which to identify bad loans and eventually sell them.

McCain made the comments as his advisers said that they plan to use the next day or two to begin speaking about what they assume went wrong with the markets, and to begin an aggressive debate with Senator Barack Obama on the economy.

To read the entire article from the New York Times, link here:

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