John McCain

First, to deal with the immediate crisis, I will lead in the creation of the Mortgage and Financial Institutions trust -- the MFI. The underlying principle of the MFI or any approach considered by Congress should be to keep people in their homes and safeguard the life savings of all Americans by protecting our financial system and capital markets. The MFI is an early intervention program to help financial institutions avoid bankruptcy, expensive bailouts and damage to their customers. 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 another.

Second, I will propose and sign into law reforms to prevent financial firms from concealing their bad practices. Americans have a right to know when their jobs, pensions, IRAs, investments, and whole economy are being put at risk by the recklessness of Wall Street. And under my reforms, that fundamental right will be protected.

Third, we need regulatory clarity. The current system promotes confusion, encourages bureaucratic infighting and creates incentives for financial firms to cut corners. We don't need a dozen federal agencies doing the job badly -- we need the best federal agencies to do the job right.

Fourth, our regulatory system must protect consumers and investors by punishing individuals who engage in fraud, break contracts, or lie to customers. On my watch, the consequences for corporate abuse will not be more enrichment, but more likely an indictment.

Fifth, in cases where failing companies seek taxpayer bailouts, the Treasury Department will follow consistent policies in deciding whether to guarantee loans. It must have well developed remedies for a financial crisis. With billions of dollars in public money at stake, it will not do to keep making it up as we go along.

Finally, the Federal Reserve should get back to its core business of responsibly managing our money supply and inflation. It needs to get out of the business of bailouts. The Fed needs to return to protecting the purchasing power of the dollar. A strong dollar will reduce energy and food prices. It will stimulate sustainable economic growth and get this economy moving again.

All of these measures will calm and help us to avoid future panics and disasters in the financial markets. And great reforms on this scale will require the best in the leadership of both political parties. We face very serious problems in the financial markets, and partisan bickering will get us exactly nowhere. It took members of both parties to get America into this mess, and it will take all of us, working together, to find a way out.

Thanks for listening.

John McCain

John McCain is a candidate for the nomination of the Republican Party for President of the United States.