WASHINGTON (Reuters) - The federal government must plan an exit strategy for several programs it has put in place to help rescue the financial system, the chairman of the U.S. Securities and Exchange Commission said on Thursday.

Since the U.S. mortgage market meltdown triggered havoc on global financial markets and economies, Washington has committed more than $8 trillion in taxpayer funds that would help stabilize the problem.

That includes $700 billion to shore up financial institutions, up to about $1.8 trillion to buy top-rated U.S.-dollar commercial paper, nearly $2 trillion in guarantees for banks and up to $900 billion in loans for financial institutions.

"We must begin to build an exit strategy from this myriad of new programs and commitments," SEC Chairman Christopher Cox said at an event in Washington.

"There has to be a deliberate design to eliminate them ... anything short of this will almost certainly guarantee eternal life for these vast new federal roles."

Fearing repercussions from the failure of large financial institutions, the government has put up $200 billion to backstop mortgage finance giants Fannie Mae and Freddie Mac, provided up to $152.5 billion to support insurer American International Group <AIG.N> and brokered a deal to save Bear Stearns with $29 billion in financing for JPMorgan Chase <JPM.N>.

The government has also set aside $300 billion to refinance failing mortgages into new, reduced-principal loans with a federal guarantee.

"One has to be concerned about the new role the government is in," Cox said. "Uncle Sam is now a shareholder in banking and financial institutions and other private firms across the United States."

The SEC has also undertaken unprecedented measures to steady markets. In mid September, the SEC imposed emergency orders to temporarily stop investors from making bearish bets on more than 950 financial stocks like Morgan Stanley <MS.N> and Goldman Sachs <GS.N>. That order has since expired.

Cox warned of the overreaching actions of the U.S. government and said when the government becomes both referee and player, the game changes.

"Rules that might be rigorously applied to private sector competitors will not necessarily be applied in the same way to the sovereign who makes the rules," Cox said.

(Reporting by Rachelle Younglai; Editing by Bernard Orr)

By Rachelle Younglai

Publié le 04 Décembre 2008 Copyright © 2008 Reuters