McCain disappointed by Paulson in financial rescue

WASHINGTON (Reuters) - Republican presidential candidate John McCain on Tuesday said he was disappointed U.S. Treasury Secretary Henry Paulson has not made the candidate's mortgage buyback proposal a top priority in the government's effort to end the financial crisis.

In an interview with CNBC, McCain said that if he is elected next Tuesday he would want a Treasury secretary that would give the mortgage buy back proposal a high priority. The Treasury Department has used the first tranche of the $700 billion financial rescue package recently enacted to inject capital into banks in exchange for shares of preferred stock.

"I'm disappointed that Secretary Paulson has not put first emphasis on buying these home mortgages and keeping people in their homes," McCain said in an interview that also included his vice presidential running mate Sarah Palin.

McCain noted that Federal Deposit Insurance Corp Chairman Sheila Bair agrees with his position.

(Editing by Theodore d'Afflisio)