Now that Ed Liddy has decidedto quit his thankless job as a lightening rod for everyoneseeking someone to blame in the AIG government bailoutdebacle, the big question becomes who in their right mind wouldwant to sit in the hot seat he is vacating?

In case you haven't heard, Mr. Liddy announced that he would bestepping down as both chair and CEO of the beleaguered AmericanInternational Group as soon as his board can find replacements.

Yes, I used the plural--replacements--because Mr. Liddysuggested (and the board wisely agreed) to split his twoposts. That's perhaps the most important news here.

Ever since industry titan Maurice Greenberg resigned both keypositions in the wake of an accounting scandal involving bogusfinancial reinsurance deals to artificially bolster AIG's balancesheet, I've argued that AIG--and every U.S. company--should have aboard chair separate from the CEO who runs day-to-day operations toassure proper internal oversight and accountability. It's abouttime AIG got the message.

That said, in spite of my recent criticism of Mr. Liddy'sbloated expense account, I have to hand it to the guy for comingout of retirement to take over AIG during such anoverwhelming crisis. It was like being named captainof the Titanic right after it hit the iceberg--thatbeing the company's reckless credit default swaps thatthreatened to sink the country's biggest insurer untilWashington stepped in with a $180 billion life preserver.

Of course, even though Uncle Sam maneuvered to put the formerAllstate executive in charge of the critically damaged AIG, thatdidn't stop government officials--particularly in Congress--frombeating him like he was a pinata.

The media did its fair share of bashing as well--first about theluxurious retreats where AIG officials wined and dined topproducers, then targeting the massive bonuses paid to many ofthose in the Financial Products unit that nearly destroyed thecompany, and most recently about the more than generousexpense package for Mr. Liddy.

Still, Mr. Liddy did his job. He stabilized the company,provided credibility and leadership at the top, and began the long,arduous process of liquidating assets so that taxpayers mightactually be repaid someday. And while not exactly riding the bus towork, he did work for an annual salary of $1.

The next chairman and CEO will likely get paid a more reasonablesum, but they will have to work their butts off to earn everypenny. Indeed, whoever does become chair and CEO will faceincredible challenges--not the least of which will be trying to runthe company with Uncle Sam looking over their shoulders, and withnew restrictions over executive compensation. Plus there are alwayspress people like yours truly ready to pounce at the firstsign of trouble.

Treasury Secretary Timothy Geithner made it clear this weekthat the federal government will be intimately involvedwith AIG for the foreseeable future, for better or worse. Thatis an enormous complication for AIG's new leaders to cope with.It's hard enough running a public company, with all the demandsmade by shareholders, regulators, analysts and the press. HavingCongress, the Treasury and the White House poking their noses inyour business as well is certainly not a positive recruitingpoint.

Still, this is AIG we are talking about. Any top insuranceexecutive worth their salt would relish the opportunity to be theleader who restored AIG to its former glory.

Besides, a lot of the heavy lifting has already been done by Mr.Liddy. Insurance subsidiaries are rebranding and preparing for aspinoff and public offering to raise capital. And as the economyimproves and the capital markets loosen, the organization's growthprospects should brighten considerably.

So, who will take over for Mr. Liddy? Your guess is as good asmine.

The company needs leaders with guts, gumption, vision,salesmanship and a very thick skin.

Got any suggestions?