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JACKSONVILLE, Fla. - Wall Street turmoil underscores the need to overhaul "the outdated and ineffective patchwork quilt of regulatory oversight in Washington," Republican presidential contender John McCain said Monday.

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In a statement issued in advance of market openings, the Arizona senator said he agreed there should be no taxpayer-financed bailout of Lehman Brothers even as the investment banking giant faced the specter of liquidation. Meanwhile, Merrill Lynch was selling itself to Bank of America for less than half of the iconic brokerage firm's recent value.

"It is essential for us to make sure that the U.S. remains the pre-eminent financial market of the world. This will be a highest priority of my administration. In order to do this, major reform must be made in Washington and on Wall Street," McCain said in his statement.

He added: "The McCain-Palin administration will replace the outdated and ineffective patchwork quilt of regulatory oversight in Washington and bring transparency and accountability to Wall Street. We will rebuild confidence in our markets and restore our leadership in the financial world."

The GOP nominee underscored his message with a new campaign television commercial titled, "Crisis."

It said, "Our economy in crisis. Only proven reformers John McCain and Sarah Palin can fix it. Tougher rules on Wall Street to protect your life savings. No special interest giveaways. Lower taxes to create new jobs. Offshore drilling to reduce gas prices."

Details about the size and location of the advertising buy were not immediately available.

Over the weekend, advisers both to McCain and Democratic rival Barack Obama said they did not favor a government bailout of Lehman Brothers like that previously provided to Fannie Mae and Freddie Mac. The government also help engineer the recent sale of Bear Stearns Cos. to J.P. Morgan & Co.

"I am glad to see that the Federal Reserve and the Treasury Department have said no to using taxpayer money to bailout Lehman Brothers, a position I have spoken about throughout this campaign," said McCain. "We are carefully monitoring the financial markets, including the duress at Lehman Brothers that is the latest reminder of ineffective regulation and management. Efforts must also be focused on ensuring that the deposits of hardworking Americans are protected."

The financial turmoil threatened to overshadow two events on McCain's schedule not seen in weeks: a solo campaign rally and a town hall meeting.

The Republican presidential contender visited the city where he once commanded a Navy squadron for his first individual rally since announcing Sarah Palin as his running mate over two weeks ago. Then he was flying to Orlando to take questions from an audience for the first time since a session in Las Cruces, N.M., before he accepted his party's nomination at the Republican National Convention.

Aides hoped for a sizable turnout for the Jacksonville rally, a special wish after Palin drew thousands Saturday in Carson City, Nev.

McCain was greeted by a crowd of several thousand who filled less than a quarter of the Jacksonville Veterans Memorial Arena.

General Havoc wrote:Well one could see this another way. When the situation is so bad that even the Republicans start talking about the need for more regulation, then you know somebody has seriously screwed the pooch.