Monday, May 16, 2011

IMF chief's arrest may speed up succession battle


Dominique Strauss-Kahn, the leader of the International Monetary Fund, spent much of Sunday at the Manhattan Special Victims Unit in East Harlem as prosecutors sought additional evidence, including possible DNA evidence on his skin or beneath his fingernails, to bolster allegations that he had sexually assaulted a maid in a $3,000-a-night suite at a Midtown hotel, officials said.

IMF officials explained Lipsky often runs the financial institution when the managing director (MD) is away and said it remained "fully functioning and operational."

But the announcement did not mask concerns among some high-ranking IMF board officials about a possible leadership vacuum, especially as Lipsky only last week said he planned to stand down in August when his term ends.

That could leave the world's lender rudderless just as it is immersed in efforts to fix the euro zone's debt debacle and faces the massive task of helping steer the global economy away from the kind of policies that triggered the crash of 2007-09.

As the court order was being sought, the woman who told the police on Saturday that she had been attacked by Mr. Strauss-Kahn, picked him from a police lineup on Sunday, the police said.

The identification came less than a day after he had been taken into custody by detectives of the Port Authority of New York and New Jersey in the first-class section of the Air France jet. He was turned over to detectives from the Midtown South Precinct and later taken to the Special Victims Unit.

After identifying Mr. Strauss-Kahn about 4:30 p.m., the woman, a maid at the Sofitel New York on West 44th Street, where Mr. Strauss-Kahn was a guest, left the Special Victims Unit in a police van that drove past a gaggle of reporters. A blanket was covering her head.

Mr. Strauss-Kahn himself remained at the Special Victims Unit, near the Robert F. Kennedy Memorial Bridge, well into the evening, and it was unclear when he would be taken to Manhattan Criminal Court for arraignment.

The heads of the Bretton Woods institutions should be chosen solely on the basis of an open and merit-based process without regard to nationality."

Former Turkish finance minister Kemal Dervis' name has been circulated in recent months as a possible candidate.

Dervis was a former head of the United Nations Development Programme and now directs an economics program at the Washington-based Brookings Institution think-tank.

While some in Britain speculated about a candidacy of former Prime Minister Gordon Brown, who served as finance minister for a decade until 2007, his successor, David Cameron, has urged the IMF to look beyond Europe for its next leader.

Current French Finance Minister Christine Lagarde has also been touted by some Europeans as a possible successor. That would make her the first female head of the institution.

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