WASHINGTON, Oct. 18, 2008 (Reuters) — The International Monetary Fund said on Saturday it was investigating whether its chief Dominique Strauss-Kahn abused his power in an affair with a subordinate who has since left the global institution.
The subordinate, Piroska Nagy, a former senior economist at the IMF's Africa division, was not given preferential treatment before leaving the IMF in August, her lawyer said.
The London-based European Bank for Reconstruction and Development, where Nagy now works, was not aware of the IMF investigation, a spokesman said. Nagy was a highly qualified senior economist who worked on banking issues, he said.
It said Nagy's husband, Mario Blejer, a highly regarded international economist and former head of the Argentine Central Bank and an advisor to the Bank of England, found e-mail evidence of the affair when it ended.
The investigation of the IMF managing director comes as several countries turn to the fund for financing to help ease the effects of the worst global financial crisis since the Great Depression and politicians consider its role in preventing future crises.
Ok...so let me get this straight.....while the international capital markets are going through a melt down there is an investigation into the affair between Dominique Strauss Kahn aka DSK and senior economist Piroska Nagy, wife of the former head of the Argentine Central Bank.
How can any group waste money trying to make a case of abuse or sexual harassment out of the fact that two highly educated and powerful adults made the decision to send each other some sexy emails and have an affair. Besides, what would you expect from DSK....he's French!
Meanwhile, the real news in my opinion is the fact that DSK, ex Minister of Finance of France and prominent Socialist, is even the head of the IMF at all.
F.A. Hayek and Ludwig von Mises must be turning over in their graves....
Just another step forward on the Road to Serfdom....
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