UPDATE 2-Summers: market interventions only temporary

*Summers says aid to banks, carmakers temporary, necessary

*Gov't not trying to take over markets but protect them

*Regulatory overhaul central to White House agenda (Recasts lead, adds quotes, details throughout)

By Glenn Somerville

WASHINGTON, June 12 (Reuters) - Chief White House economic adviser Lawrence Summers on Friday vigorously defended the administration's aid for banks and carmakers as necessary, temporary measures rather than lasting market intrusions.

"Our objective is not to supplant or replace markets," Summers told the Council on Foreign Relations in New York. "Rather, our objective is to save them from their own excesses and improve our market-based system going forward."

His speech, monitored in Washington via audio feed, was clearly intended to take on criticisms that the Obama administration was taking on too much of an ownership role in industry rather than relying on free-market forces that have driven the American capitalist system.

"The actions we take are those of necessity, not choice," he insisted, adding that President Barack Obama had no desire to "manage banks, insurance companies or car manufacturers."

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