McCain says SEC chairman is a good man, but should step down

John McCain reiterated his view that Chris Cox should step down or be fired. The Republican presidential candidate says that greater accountability is needed in Washington.

John McCain said the Fed should get back to its responsibilities of managing money supply and inflation. He also laid out economic recommendations to stabilize markets in the financial crises.

The Republican presidential candidate said that leaders should put aside partisan differences. He suggested that they should focus on recovery that will keep people in their homes and safeguard the life savings of all Americans.

Treasury Secretary Henry Paulson crafted a massive proposal that could amount to a 1 trillion taxpayer bailout of the mortgage industry.

On Friday, McCain said the Federal Reserve needs to stop bailing out failed financial institutions. McCain also reiterated his view that SEC chairman Chris Cox should step down or be fired. He cited reasons that there needed to be greater accountability in Washington.

Earlier this week, the Fed engineered an 85 billion takeover of insurance giant AIG. It is the latest action by the Fed after seizing control of housing giants Freddie Mac and Fannie Mae.

McCain said that while the takeover should help return the U.S. to fiscal solvency, the Fed should instead focus on shoring up the dollar and keeping inflation low.

McCain also renewed his call for tighter regulation of financial markets. He said as president, he would create a Mortgage and Financial Institutions Trust to help homeowners avoid foreclosure.

The Arizona senator also said he would propose and sign into law changes to prevent financial firms from concealing "bad practices."