Gonzales hired him, Gonzales can fire him at any time. Why he continues to permit this farce in the wake of the Armitage nuke, is beyond me. Along with this, the border agents outrage, the "Dog" Chapman betrayal to Mexico and most of all, the Sandy Berger wrist-slap shows an Attorney General who is totally incompetent.
Considering how the entire case has backfired on Fitz and Dems and media (except the most delusional amongst them), I don't think allowing Fitz to proceed with it was incompetence, more like genius... we wouldn't know about Armitage and VIPS cabal role in the "yellowcake" case just like we didn't know about UN-OFF fraud until we found documents in Iraq (apparently UN is doing something similar with NoKo Kim, too). Besides it would be politically impossible to fire Fitz, and to this day "the usual suspects" would be screaming about "CIA agent name leak" and "Bush coverup" of "politicized Iraq intellegince" etc etc.
Can't speak to other issues, but Sandy Berger matter completely confounds me unless it's a part of Bush's "new tone", which has gotten very long in the tooth very early in his presidency.