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Chertoff might be raked over the coals a bit because of the administration's inept response to Hurricane Katrina. But most of the blame for that has been correctly laid at the feet of former FEMA Director Michael Brown, who failed to report through Chertoff as he was supposed to do. Ordinarily it might not be a good idea to switch the head of such an important department, because that would merely set up yet another confirmation battle for that other department -- but in this case, it is thought that Bush's in-house homeland security advisor, Frances Fragos Townsend, could easily step into Chertoff's role and would be easily confirmed.
The third name I would add has no direct DoJ experience, but makes up for it with a breadth of other applicable experience. He's Securities and Exchange Commission Chairman Christopher Cox (so he does have experience heading a big agency with law enforcement functions), a longtime congressional leader, widely respected, and also a former senior associate counsel for President Ronald Reagan. He's brilliant, and while strongly conservative, he is seen as a bipartisan straight shooter, a man of principle.
All three of these men would be clear improvements over the well-meaning but overmatched -- and now discredited -- Gonzales. Unfortunately, this president has a reputation for valuing loyalty above competence. This is his chance to change that impression.