John McCain singles out a fellow Republican for blame in Wall Street meltdown

Faced with a complex, bewildering and downright scary crisis -- i.e., the turmoil now afflicting Wall Street -- politicians often find it convenient to identify a specific villain whom they can thrash for effect.

For Democrats, that target almost always is President Bush (it goes with the turf; the buck does stop in his office). But even for self-proclaimed maverick John McCain, it would be impolitic -- as the Republican presidential nominee -- to call out the Republican currently residing in the White House.

So McCain, speaking today in Iowa, singled out a different federal official: the chairman of the Securities and Exchange Commission.

His critique was harsh: "In my view," he said, the SEC chairman "has betrayed the public trust" by failing to adequately regulate America's high financiers, McCain said.

And his remedy was direct: "If I was president today, I would fire him."

McCain did note that the chairman is a presidential appointee, though he avoided mentioning the particular president who put in office the fellow he so disdains. But other omissions were more telling.

Aside from not naming the chairman -- Chris Cox (above) -- McCain neglected to tell his cheering audience that this benighted public servant brought a sterling, and solidly Republican, resume to his job when he assumed it in August 2005. Cox was a one-time legal aide in Ronald Reagan's White House who, staring in 1989, represented an affluent House district in California for many years (its core was Newport Beach). In Congress, he was a major player in formulating GOP policy, including a generally hands-off regulatory approach to business that McCain also advocated.

Here's more on Cox's background: After whisking through the University of Southern California in three years, he earned both a master's in business administration and a law degree from Harvard. While still in the House, the Almanac of American Politics wrote that his "intellect and range of interests are impressive."

Cox was confirmed for the SEC post on a voice vote -- with nary an objection heard -- by the Senate. The chamber's members included McCain and Barack Obama (though we do not know whether either were on the floor at this moment).

No reaction yet from Cox to McCain's attack on him. But boy, wouldn't we love to know who he ends up voting for later this year (maybe he'll pass on the presidential part of his ballot).

-- Don Frederick

Photo credit: Bloomberg News

Comments

[LawKHM]

I'm not sure. Can the president fire the SEC chairman during his five year term, after appointment and confirmation by the senate? Or does he have to wait until the end of the term and not reappoint him?

[Aleks]

John McCain doesn't give the SEC Chairman any credit for the "fundamentals" of the economy being so "strong"?

[Cindy]

Next McCain will have to fire himself.

Cox is only supposed to be the enforcer of the rules, which McCain and his pal Phil Gramm have removed. Cox has essentially nothing to do. McCain has only himself to blame for that.

[scootmandubious]

This is all red meat to throw out, so he can pretend to be a maverick.

Currently, McCain has more to worry about. Like being relegated to #2 on his ticket by his running mate.

Palin's reference to a Palin/McCain ticket is pretty funny.

For those who haven't seen it, I have the clip:
http://scootmandubious.blogspot.com/2008/09/palin-touts-palin-mccain-administration.html

[Blackwell Malone]

Just last week McCain was railing againist the regulations on the stock market and banks put in place in the 1930's as against the free market. Yet today he is going to fire Cox for throwing out a regulation that was put in place in the 1930's to prevent another 1929 crash. Come on McCain get on one side ot the issue or the other...this tennis match is giving me neck cramps. Are you a true conservative or a neocon?

[feudi]

The blame goes not only to the SEC, but the GASB, the IASB, the AICPA, and the Department of Commerce, Interior, Justice, HUD....you name it. The accounting profession caved in to the charlatans who invented "off balance sheet" transactions, top-side entries, and any other accounting device that obscured the truthfulness behind these "ghost" assets.

[Fed_Up]

McCain is obviously trying to deflect blame from his former economic advisor Phil Gramm. Gramm has rightfully gotten a lot of criticism for his bill " The Financial Modernization Act "of 1999, also known as the "Gramm-Leach-Bliley Act" . This was the bill that deregulated the banks, which led to the subprime and credit meltdown that is now at the root of our economic woes.

Before Gramm started getting a lot of bad press this summer due to his leadership in deregulating the banks, he was McCain's main economic adviser and was thought to be the frontrunner for McCain's pick for the Secretary of the Treasury. McCain has recently been distancing himself from Gramm (they used to appear at events together all the time), but McCain is on the record as a big fan of Gramm's views on economics.

[Dale]

This is such a shallow attempt to look like the Maveric he wants everyone to think he is. It's real easy to point fingers and say I would fire this guy when you don't have to act on your attacks. The fate of Wall Street cannot just fall on the shoulders of one person. The entire Hands off philosophy toward the market of the republican party has aided in this catastrophy. Yes the same philosophy that McCain himself subscribes to and would maintain as President. So advise to McCain, we see through the gimmicks, all of them. You are not a Maverick, either is Palin, so stop trying to force it down our throats.

[gary noel]

This is ridiculous!!! As much as I disliked Cox when he was a congressman, I think he was the perfect fit for the head of the SEC. MaCain is is looking for someone to blame, but he is picking on the wrong person.

[regina everett]

It seams to me that the democractes are the ones
in the Senate and Congress running things,
So ,why would you want a democrate for president
this reminds me when Jimmy Carter was in office and
the republcans had to fix the dem. misstakes in the Congress
Senant and President . Since , then I have been voting republican
and never look back

[Jim]

How about McCain adviser Phill Gramm? Read Froma Harrop.

[PulSamsara]

Why would America REWARD complete Republican failure ?

We wont.

[Richard]

How long before a staffer whispers in McCain's ear the fact that the SEC chairman does not oversee banking or insurance?

Here's another guess-the-number-of-jelly-beans question: after making a fetish of deregulation for the past thirty years, how many times will Republicans demand increased regulation this week, and without even blushing?

[Harvey]

Headline should have been, "Republicans eat their young!" Everyday Mr. McCain is showing himself to be exactly what he claims he is not, an Old School and unprincipled politician. He is destroying his reputation over his need to be in the White house. I am sure people a lot smarter than I am can point to clear examples in history and literature that would best describe what we the people are a witness to. It is unfortunate for Mr. McCain, however it is a blessing for the country.

[T-Bone]

Did McCain just tell us that we should fire McCain for having such failed ideas?

Or is he saying that even though he would have done the same exact thing, he's not to blame because he wasn't in charge?

[ted in pdx]

I wonder if it was coincidence that McCain's first two very specific proposals (firing Chris Cox & creating a 'mortgage and financial institutions trust') were the same two that Ben Stein articulated last night on Larry King, after a blistering assessment of the Bush administration's oversight failures. I have no doubt that Ben Stein understands the origins of the mortgage crisis and what wasn't done about it that allowed it to reach this point. But I don't believe McCain has a clue, and this smacks of plagiarism and posturing to me. How does a credible candidate for President go from "I'm going to appoint a commission to study the matter..." one day, to "I'm firing Chris Cox..." the next? (Probably the same way he selected his running mate.)

Stein also had harsh criticism of "whoever they have giving him (McCain) advice". Stein said he would like to give McCain a crash course in economics by sequestering him with Warren Buffet for a day or so, but that wasn't possible since Buffet is supporting Obama.

I also looked into McCain's co-sponsorship of a bill in 2005 which would have overhauled the oversight structure for Fannie Mae & Freddie Mac. In his brief endorsement of the Bill (which I believe was never voted on), he described very accurately some of the conflicts of interest and cooking of books which created a dangerous liability for taxpayers:
(http://www.govtrack.us/congress/bill.xpd?bill=s109-190)
(http://www.govtrack.us/congress/record.xpd?id=109-s20060525-16&bill=s109-190)

I'm no expert, but as I read this record, the bill was reported out by the Senate Banking committee favorably July 28, 2005, when the Republicans were still in control of Congress, but never voted on (Why?). It was re-submitted in 2006, apparently in an attempt to embarrass the Dems and give the appearance that they were the ones opposing more regulation of F&F. (Don't know, were they?)

My question is: if McCain is so outraged now by all of this, why did he do so little about it in 2005 when the R's were in the majority? If he's the Maverick who challenges his own party, and he knew there was a crisis brewing in the mortgage industry, why didn't he make more noise publicly about it than simply entering a statement into the Congressional record?

I've been a voting Republican since 1971, and I always thought McCain was the best our party had to offer. The things he's revealed about himself and his character in particular during these last 9 months are appalling to me, and I'm supporting Obama (so that's my bias). But I think there are some issues of fact here that bear investigation.

[the word]

Its interesting to see how politicians operate and its not a nice picture. McCain was the champion of deregulation for the last 10 years. In essence McCain helped in way carve the financial crisis we are in today. But, he quickly passes on the blame to a man who's job is the oversight of laws and regulations that come from legislators like Mccain.

Either McCain has alzheimer or he has no clue on what his deregulation laws meant. Either way he should "fire" himself.

[lucy2008]

Sir,

This hardly shows Mr. McCain is a maverick. He's a loose cannon just shooting anywhere he can. That is just plain poor thinking and not in control of his own behavior. He doesn't even know enough to know how to solve this. He is just shooting out for blame so that he doesn't get the blame and it's going to come back and shoot him in the foot. Oh boy. Come on, this looks bad. I'd be worried how everyone is taking this. We are all shaking our heads. Again, this looks "Quick-to-the-Draw McCain".

[Myaushka]

The housing crisis was in its terminal stage by 2005, when Cox was appointed.

[Geojewel]

Is this the change McLame is trying to push, when you sit on the commerce committee for years and push deregulation, he is unwilling to even take any blame for his part in this fiscal fiasco. I bet when McLame voted for NAFTA, CAFTA, and all the other Chamber of Commerce deals to outsource our jobs, he will never admit his part in selling out this countrys workers.

He is just another despictable republican who has shown little leadership and looking to blame others for his failures. 8 Years of Bush and you wont find a republican admitting they have failed this country. ITS NEVER THEIR FAULT. Okay I buy that, I am voting for Obama in November.

[Buddesatva]

McCain can have my vote right now if he pledges to put Bush, Cheney, Rumsfeld and Gonzalas on trial for treason. They belong in prison at the very least. If the scaffold they used on Saddam is still available, so much the better.

[laad]

Capitalism is the fundamental of our economy. Let change it to communism. Lets put an end to all the evils of this society.

Vote for a "Non-white Guy" just because he is a change from a White guy. Vote for a guy who is dumber than Bush because he represents change.
Don't vote on record. That's change.
Lets change all well to do ppl in America to poor and make the poor the new rich. That is change
Lets rob Paul to pay Peter. That would be change.
Let's replace a dumb President who takes bad decision with one who doesn't take any decision. That's change.
Change my "Posterior"

[dan]

Hey Richard,

Maybe someone should whisper in your ear it was the large banks that bought tens of thousands of mortgages from small local lending banks, “bundled” them into Jumbo new securities which were then rated by Moody’s or Standard & Poors or Fitch, and then sold as bonds to pension funds or other banks or private investors who naively believed they were buying bonds rated AAA, the highest, and never realized that their “bundle” of say 1,000 different home mortgages, contained maybe 20% or 200 mortgages rated “sub-prime,” i.e. of dubious credit quality.

That certainly falls under the jurisdiction of the SEC.

[oregon4obama]

McCain wants to blame a single preson when his economic agenda has been 90% in line with Bush.....giving tax breaks to corporations, de-regulating them, not promoting transparency and promoting free and unregulated enterprise!!!!!!!!!!!!!.....

McCain, this fall in the dow has refocused people on what really matters.....and right now we need real Change from Obama......your reformer image is tainted and has been on the side of the few against the many....your VP also shares and has been exposed for corruption, lying and irresponsible spending as well....Bush-McCain-Palin = more of the same failed policies

[John]

Take a look at Obama's ties to Freddie Mac and Fannie Mae, take a look at "do nothing" Barney Frank who shot down the reform bill Bush and McCain wanted to do in 2003. Barney only wanted bad loans for "affordable housing"

Take a look at Obama's releationship to the Lehman crowd. http://canadafreepress.com/index.php/article/5076
Obama is number 2 in money contributions from Freddie and Fannie Mae sources from 1989 to now in all of congress. AND he has only been in the senate 3 yrs.

Yes, the apple does not fall too far from the tree in Obama's case