Monday, September 22, 2008

McCain defends his calls for deregulation

McCain defends, Obama blames deregulation

WASHINGTON - Sen. John McCain defended deregulation on Wall Street even as he endorsed a $700 billion bailout of financial firms in an interview broadcast Sunday.

His opponent in the presidential race, Democratic Sen. Barack Obama, said an inadequate regulatory system was partly responsible for the crisis. Both candidates were interviewed on CBS' "60 Minutes."

McCain, the Republican presidential nominee, has long supported fewer regulations for businesses. But as the financial crisis on Wall Street worsens, McCain is calling for more government. Obama said McCain is late in calling for better oversight after years of supporting fewer regulations.

McCain was asked if he regretted supporting a 1999 law that removed barriers between investment banks and commercial banks that were erected in 1933, in response to the 1929 stock market crash.

"No," McCain said. "I think the deregulation was probably helpful to the growth of our economy."
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In a separate interview on "60 Minutes," Obama said, "There were a lot of factors involved" in the crisis. "But I think there is no doubt that if we had had a regulatory system that had kept pace with the changes in the financial system, that would have had an enormous impact in containing some of the problems that are out there."

Obama also challenged McCain's credentials on increasing government oversight.

"I think that I've got a track record of actually believing in this stuff," Obama said. "And, you know, Senator McCain, fairly recently, said, 'I'm a deregulator.'"

Obama also pointed out former Sen. Phil Gramm, one of McCain's economic advisers, was a chief sponsor of the 1999 bill that removed restrictions on investment and commercial banks.


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