No Chance of Return to IMF Position

Some of Dominique Strauss-Kahn's supporters in France suggested Friday he should get his job back at the International Monetary Fund in light of developments in the criminal case against him, saying he was the victim of a rush to judgment. But that won't happen.


The fund this week named former French finance minister Christine Lagarde as its new managing director. She reports for her first day of work on Tuesday.

Friday's developments could vindicate the fund for its stance in the days after Mr. Strauss-Kahn's arrest in mid-May. Despite external pressure to oust him, IMF officials sought to separate the fund from the legal case. No board members called for Mr. Strauss-Kahn's resignation, many indicating he deserved the presumption of innocence. The IMF's No. 2 official automatically became acting managing director in the absence of Mr. Strauss-Kahn.


"The IMF always recognized that this was a matter for the U.S. judicial system," said Domenico Lombardi, a Brookings Institution economist and former IMF board member. "In that way, it wasn't tainted when he was arrested, and it's not taking any position now that he's been released from house arrest."


Still, Mr. Strauss-Kahn's detention by police prevented him from carrying out his IMF duties, either in Washington or abroad. Even today, though released from house arrest, he cannot leave the U.S.


When he submitted his resignation on May 18, four days after the alleged assault, Mr. Strauss-Kahn said he wanted "to protect this institution which I have served with honor and devotion, and especially—especially—I want to devote all my strength, all my time, and all my energy to proving my innocence."


While Mr. Strauss-Kahn is credited for giving the IMF new global prominence after the financial crisis, he will also be remembered for the allegations that ended his IMF career, along with an affair with a subordinate early in his tenure. That 2008 incident drew a rebuke from the IMF board and a warning that inappropriate behavior wouldn't be tolerated in the future.


"The IMF is certainly now more aware of the reputational risk it can incur," Mr. Lombardi said. "Therefore it will be incentivized to look even more closely at the soundness of its work environment.Certainly there is a greater focus now on this issue than there was before."


One effect under Ms. Lagarde may be an assessment of how women are represented at the fund. Asked on French television on Tuesday whether her appointment was a victory for women, Ms. Lagarde noted that "there wasn't one woman in the group" during her interview with the IMF board. "When I was questioned for three hours by 24 men, I said to myself that it's good things are changing."