McCain: Paulson, Bernanke Misled Me on Bank Bailout

By: Stephanie Condon
Topics: Congress

(CBS)

Sen. John McCain said he was misled by former Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke about the intent of the Troubled Asset Relief Program (TARP), or the bank bailout, the Arizona Republic reports.

Facing an aggressive primary challenge from Arizona conservative talk radio host J.D. Hayworth, McCain has been compelled in recent months to tack right on partisan issues and explain past votes.

In a meeting Thursday with the Republic's editorial board, McCain reportedly said Paulson and Bernanke initially assured him the $700 billion bailout would focus on the mortgage meltdown that spurred the financial crisis.

"Obviously, that didn't happen," McCain told the newspaper. "They decided to stabilize the Wall Street institutions, bail out (insurance giant) AIG, bail out Chrysler, bail out General Motors. . . . What they figured was that if they stabilized Wall Street - I guess it was trickle-down economics - that therefore Main Street would be fine."

McCain defended his vote for TARP, saying "Something had to be done because the world's financial system was on the verge of collapse."

Hayworth, however, has blasted McCain for failing to be a "consistent conservative."

"Rather than calling his bus the straight talk express – given the gulf between his current campaign rhetoric and his record of performance – he might want to name that the double talk express," Hayworth told CBS News.

Stephanie Condon
Stephanie Condon is a political reporter for CBSNews.com.
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by jonnyjalled February 23, 2010 10:11 PM EST: How can it be so hard to believe? Johh McCain's entire Presidential Campaign was on getting the mortgage issues resolved. He spoke on this numerous times. There is no way that he would abandon what he believed the answer was to this economic situation we are in. There will be no true race, John McCain has proventime and time again that he is the man for the job. He goes to bat for us (Arizona) and (US) every time I turn on the tv. John McCain was the strong voice against the govt run healthcare option, he was and still is the strong voice against the mounting deficit that could crumble our future, he is the one who is fighting for our Nation's security. I would not even entertain the idea of anyone else for the job!; Reply to this comment


by Repubforlife February 23, 2010 10:00 PM EST: Why is it that in an election year individuals think it is ok to bash someone. I would also like to know if you think you are perfect? The way I see it, JD Hayworth has done soo many immoral, illegal and unethical things over his years to cause much doubt. Why on earth would someone find fault in a man who has proved himself time and time again to be a loyal American fighting for what is just and fair in this amazing Nation of ours??; Reply to this comment


by mld678 February 23, 2010 1:35 PM EST: If Hayworth wins (extremely doubtful) then my theory of Arizona politics will be proven out sadly. That is, the dumber you are the better your chances of getting elected in Arizona. Birthers - the level of stupid conspiracy theories. McCain needs to keep his seat, or I'd seriously consider moving; Reply to this comment


by sjc_1 February 22, 2010 5:53 PM EST: John has been in Congress long enough to know better. The "just let them fail" slogan was mindless and reckless, but we needed to do something where more provisions and oversight were implemented. 100 billion dollars in TARP loans was mostly paid back with interest, but the 100 billion for CDS that went through AIG was lost, that is the tragedy.; Reply to this comment