Sept. 17 (Bloomberg) -- John McCain, shifting his position from a day ago, suggested the government's $85 billion takeover of American International Group Inc. was unavoidable and he blamed ``greed and excess'' for the turmoil on Wall Street.

``On the bailout itself, I didn't want to do that and I don't think anybody I know wanted to do that,'' the Republican presidential nominee said on ABC's ``Good Morning America'' program today. ``But there were literally millions of people whose retirement, whose investments, whose insurance were at risk here, and they were going to have their lives destroyed because of the greed and excess and corruption.''

Twenty-four hours earlier, McCain said in morning interviews that he didn't want taxpayers to be ``on the hook'' for AIG. ``We cannot have the taxpayers bail out AIG or anybody else,'' McCain said yesterday on NBC's ``Today'' show.

His rival in the race for the White House, Democrat Barack Obama, blamed the economic policies pursued under President George W. Bush and said the government takeover must not result in a bailout for AIG corporate officers or investors.

``The Fed must ensure that the plan protects the families that count on insurance,'' Obama said today in a statement, his first comment on the rescue. ``It should bolster our economy's ability to create good-paying jobs and help working Americans pay their bills and save their money. It must not bail out the shareholders or management of AIG.''

`Reckless Management'

McCain, an Arizona senator, also said the takeover must not assist managers and investors ``who created this mess.'' He said Wall Street executives must answer for their ``reckless management.''

As the crisis in the financial markets dominated the presidential campaign, Obama, an Illinois senator, released a new television ad that stressed his proposed solutions for a troubled economy. The issue, he said, is ``how we get America back on track.''

McCain campaigns in Ohio and Michigan today and hosts his first joint town hall meeting with running mate Alaska Governor Sarah Palin this evening. She is expected to take questions from the audience at the event. Obama is scheduled to talk about the economy in Elko, Nevada, while his running mate, Delaware Senator Joe Biden, campaigns in Ohio.

Fed's Move

The Federal Reserve announced yesterday it will provide a two-year loan to AIG, the U.S.'s biggest insurer, and take over 80 percent of the New York-based company's stock. The Fed also will replace the company's management and said it is acting to head off a financial collapse.

Harvard economics Professor Martin Feldstein, whose advice has been sought by McCain, is on the board of directors of AIG.

One of McCain's top fundraisers, Wayne Berman, is registered to lobby for AIG, House records show. The company has paid Berman's firm, Ogilvy Government Relations, $100,000 during the first six months of the year.

McCain's congressional liaison, John Green, formerly lobbied for AIG at Ogilvy. He has taken a leave of absence from the firm to work on the McCain campaign.

To contact the reporters on this story: Hans Nichols in Kinsman, Ohio, at hnichols2@bloomberg.net; Kristin Jensen in Washington at kjensen@bloomberg.net

Last Updated: September 17, 2008 11:14 EDT