McCain Slams 'Out-Dated' Oversight of Financial Markets
By: Mary Ellen Klas, The Miami Herald

Sep. 15--In the shadow of another financial scare with the bankruptcy of Lehman Brothers, Republican John McCain on Monday lashed out at the current administration's regulation of Wall Street as "out-dated" and "tax burden-built" and vowed to 'end the old boys' network" that he says is crippling America's financial markets.

"People are frightened by these events," he told a friendly crowd of 3,000 supporters on the opening day of a two-day Florida tour. "The fundamentals of our economy are still strong but these are very, very difficult times. I promise you we will never put America in this position again."

Flanked by Florida's three recent Republican governors, McCain spoke at Jacksonville's Veteran's Arena, promising to reform the financial regulatory system to "protect the deposits of hard-working Americans." He said he will oppose any attempt to rely on taxpayers to bail out the troubled system.

The criticism was apparently aimed at the administration of President Bush but McCain never mentioned the president by name except to say that has has "been a good president" and has made America safer.

Sitting behind McCain was former Gov. Jeb Bush, who was hired a year ago by Lehman Brothers as a financial consultant. As governor, Bush served on the three-member State Board of Administration that agreed to let the state's retirement fund buy a series of mortgage-backed securities from Lehman Brothers that turned out to be troubled. The subsequent steep drop in value prompted a $9 billion run on the fund last December by local governments who had invested their money in the SBA managed fund. Lehman also manages two funds for the SBA, which is also heavily invested in some Lehman securities.

Bush spoke to the crowd and offered three reasons why they should elect McCain to replace his brother in office: McCain's "zeal for reform," he "won't coddle dictators and McCain "has been tested."

"Who knows what will come in the next eight years," Bush said. "But I want someone who is president of the United States whose compass points north."

Bush refused to make himself available to reporters.

McCain returned to his promise to eliminate the pork barrel spending in Washington because it "breeds evil and corruption," but he did not repeat the claim that has gotten him and running mate Sarah Palin in trouble -- that she refused earmarks including the "Bridge to Nowhere."

Instead of saying she rejected earmarks, McCain now says that every year Palin has been in office she has "cut those requests" for the so-called earmark projects. As Alaska governor, he said she has vetoed $500,000 in spending. Sen. Barack Obama, he said, asked for $932 million in earmarks -- "nearly $1 million for every day he's been in the United States Senate," he quipped.

According to the Taxpayers for Common Sense, a conservative watchdog group, Palin has asked for about $450 million in federal money since she became governor.

McCain said Monday that among the earmarks he finds outrageous is $3 million set aside to study bear DNA in Montana. Obama's campaign fired back, saying Palin's record shows a similar questionable request -- notably, $2 million to study the mating habits of Alaskan crabs.

McCain last week drew an avalanche of criticism from Democrats, independent groups and even Republican strategist Karl Rove for stretching the truth in attacking Obama's record and positions.

Rove told Fox News Sunday that McCain's attack ads had "gone one step too far" when they were "sort of attributing to Obama things that are, you know, beyond the 100 percent truth test."

As McCain tours Florida, Obama running mate Joe Biden is expected to unleash a new attack on McCain at a speech in the battleground state of Michigan. Biden, who worked with McCain when he left Jacksonville for Washington and served as the Navy liaison to Biden's Senate Foreign Relations Committee, will deliver what the campaign is calling the "Bush 44 speech" -- equating McCain to another four years of Bush.

McCain has widened his lead in statewide polls over Obama to between five and eight percentage points. Sen. Mel Martinez, who attended the Monday morning event, attributed that to both the "Palin effect" and the fact that people are "getting to know Sen. McCain better."

McCain began his Florida tour on friendly turf, the city where his family lived when he was held captive in Vietnam. He told the crowd that "the people of Jacksonville opened their hearts to my family and for that I will be eternally grateful."

McCain appeared next at a town hall meeting in Orlando, home to a growing Hispanic community that could be one of the biggest prizes come Election Day. Afterward, he is scheduled to attend a Coral Gables fundraiser Monday evening. On Tuesday, he's scheduled to hold a rally at the Tampa Convention Center. Obama has events scheduled in Grand Junction and Pueblo, both in Colorado.

The economy and cutting taxes will be the talking points of the day, said Gov. Charlie Crist, pulling out a hand-scrawled note to himself with the two words written on it. He said McCain's integrity and record of heroism will reassure voters anxious about the economy.

Crist, Sen. Martinez, former Gov. Bob Martinez and former U.S. Sen. Jack Kemp were among the headliners campaigning with McCain Monday in Jacksonville, Orlando and Miami. The only former Republican governor missing was Claude Kirk.

The campaign moved the event to the 15,000-seat arena but they came far from filling it, a possible reflection of the fact that McCain is not nearly the draw of his running mate.

"The state of Florida will again be a key battleground state in this election, and I need your help," McCain said .

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Copyright (c) 2008, The Miami Herald.  Distributed by McClatchy-Tribune Information Services.