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WASHINGTON, Sept 15 (Reuters) - Republican presidential candidate John McCain said on Monday that the crisis sweeping Lehman Brothers LEH.N and other financial firms was a sign that regulations governing the industry needed to be revamped.
McCain also said he was pleased that the Federal Reserve and the Treasury Department did not step in to rescue U.S. investment bank Lehman, which filed for bankruptcy protection as concerns grew about the the fate of other financial firms.
"The McCain-Palin administration will replace the outdated and ineffective patchwork quilt of regulatory oversight in Washington and bring transparency and accountability to Wall Street," McCain said in a statement. Sarah Palin is McCain's running mate.
Lehman's bankruptcy "is the latest reminder of ineffective regulation and management."
The bankruptcy filing came after weekend talks brokered by U.S. officials failed to produce a solution that would involve a buyout of the troubled firm by other companies.
Lehman's rival, Merrill Lynch MER.N, agreed to be taken over by Bank of America Corp (BAC.N). Insurer American International Group Inc. (AIG.N) asked the Federal Reserve for a lifeline, according to news reports.
McCain's rival for the Nov. 4 presidential election, Democrat Barack Obama, has also said he opposes a taxpayer-funded bailout of Lehman.