The Bush administration and Treasury Secretary Henry Paulson made the move today for the federal government to take control of mortgage giants Fannie Mae and Freddie Mac and removed executives of both.  However, the Bush administration did not turn to seasoned federal executives to control the failing companies, but once again relied on private sector gurus to advert this national crisis.

In a hasty attempt to prevent further liabilities facing both companies, due to soaring mortgage defaults, the heads of the organizations are being head up by a former vice chairman of Merrill Lynch and a former vice chairman of US Bancorp.

So were these good choices? 

Merrill, the nation's third-largest investment bank, has piled up $19 billion in losses over the past year because of the credit crisis and its exposure to the troubled mortgage industry.   Bancorp tripled its credit-loss provision from $191 million a year earlier to $596 million, citing "continuing stress in the residential real estate markets, including home-building and related supplier industries, driven by declining home prices in most geographic regions."

Perhaps a federal takeover should have considered seasoned federal executives for these top leadership positions vs. Adminstration cronies.  You be the judge.

Read more