McCain: Protect consumers, not management

John McCain, who has been struggling to find the sweet spot in responding to the Wall Street crisis, tried to thread the needle again this morning on the Federal Reserve's $85 billion rescue of AIG, the nation's largest insurance company.

Before the deal was announced Tuesday night, he opposed any more taxpayer-funded bailouts.

But he told ABC's "Good Morning America" today that millions who had money were tied up in the company were in danger of having their lives destroyed.

Now, his campaign just issued a statement on his behalf revising and extending his remarks.

"Today, the government was forced to commit $85 billion to stop the collapse of AIG, another in a growing series of events that includes Bear Stearns, Lehman Brothers, Fannie Mae and Freddie Mac," McCain's statement said. "These actions stem from failed regulation, reckless management, and a casino culture on Wall Street that has crippled one of the most important companies in America. The focus of any such action should be to protect the millions of Americans who hold insurance policies, retirement plans and other accounts with AIG. We must not bail out the management and speculators who created this mess. They had months of warnings following the Bear Stearns debacle, and they failed to act.

"We should never again allow the United States to be in this position. We need strong and effective regulation, a return to job-creating growth and a restoration of ethics and the social contract between businesses and America. Important questions remain to be answered by Wall Street. Did executives mislead investors and regulators about the severity of the problem? We must investigate whether or not there was misrepresentation on part of the company executives. If there was, there must be penalties. We need to change the way Washington and Wall Street does business, and as president I will."

UPDATE: McCain's running mate, Sarah Palin, also expressed her disappointment with the AIG rescue in one of her few unscripted exchanges with reporters.

"Disappointed that taxpayers are called upon to bail out another one," she said while campaigning in Ohio. "Certainly AIG through with the construction bonds that they're holding and with the insurance that they are holding very, very impactful for Americans, so you know the shot that has been called by the Feds -- it's understandable but very, very disappointing that taxpayers are called upon for another one."

McCain also launched a new TV ad that tries to clarify his repeated remark that the "fundamentals" of the economy remain strong.

In the 30-second spot, he praises American workers, who he says are the bedrock of the economy, and slams "greed" on Wall Street that is harming them.

Then, McCain turns to Democratic rival Barack Obama.

"My opponent’s only solutions are talk and taxes," McCain says to the camera. "I'll reform Wall Street and fix Washington. I’ve taken on tougher guys than this before."