Monday, May 16, 2011

DSK's arrest shook the financial world

"The affair Strauss-Kahn reshuffles the cards," editorialised the Financial Times Monday, May 16 The charges against the director of the International Monetary Fund "are very serious," the British business daily. Strauss-Kahn was charged with criminal sexual act, attempted rape and kidnapping, after accusations of a maid of 32 years, employed at a Sofitel hotel in New York.

And whatever the outcome of American justice, guilt proven or not the boss of the IMF, "the consequences of this case for international finance and the French policy is already very important," the newspaper said. The FT says that under the leadership of Dominique Strauss-Kahn, the IMF has promoted a policy of stabilizing the global financial system, shaken by an unprecedented economic crisis, and initiated a plan to rescue ailing European economies.

A political scandal and controversy at the head of this institution of international finance will not help efforts. Especially, says the FT, the number two in the IMF, John Lipsky, who temporarily takes over the reins of the financial institution, plans to resign in August. The newspaper also reminded that it becomes highly unlikely that Dominique Strauss-Kahn could start in the race for the French presidential election, highlighting the difficulties ahead in his party, the PS: "The Socialist Party will have difficulty finding a candidate who had the intellectual fabric of DSK, and its weight in the center of the political spectrum.

" The spectrum of 21 April 2002 has never been Ausi perennial, the FT concludes. The Wall Street Journalprécise also that, guilty or not, the director of the IMF can not continue his management of the debt crisis in Europe while it is held in New York. DSK was particularly expected Monday in Brussels to negotiate a new plan to rescue Greece.

And the daily rent of the effectiveness of DSK to head the IMF, "Mr. Strauss-Kahn has played a key role on the financial bailout of Greece, Ireland and Portugal today about the sovereign debt crisis'. " "It's hard to imagine a worse time," notes New York Times, pointing to a Europe in crisis and the fragility of the IMF.

Dominique Strauss-Kahn was one of those who argued for reducing the austerity measures in Greece, saying that maintain or exacerbate the situation worse, as opposed to a harder line that refuses to allocate new conditions financial Athens. "No he Kahn't" The Economist as Monday on its website.

For the British weekly, the arrest of Mr. Strauss-Kahn, in addition to jeopardizing his political career in France, leaving the IMF in shock. The log book the words of a member of the international financial institution described as "disastrous" situation and should lead the IMF chief to resign his post if he was not cleared quickly.

The IMF would lose weight a person in a critical moment in Greek workout. Le Monde. en

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