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The chief of the International Monetary Fund (IMF), Dominique Strauss-Kahn, was arrested in New York this weekend on sexual-assault charges. Mr. Strauss-Kahn allegedly assaulted a hotel employee while traveling in the states on personal business. Police escorted him off a plane he had boarded bound for Europe, where he was scheduled to meet with German Chancellor Angela Merkel Sunday to discuss the debt crises in Greece, Portugal and Ireland. He is expected to be arraigned Monday on charges of attempted rape, criminal sexual assault and unlawful imprisonment. Mr. Strauss-Kahn voluntarily agreed to submit to a scientific forensic examination to search for evidence. Even if the claims are not supported, the arrest and media attention may thwart his candidacy for the French presidency in 2012. It may also undermine the IMF’s role in dealing with the euro-zone crisis, which had reached new heights earlier in the week when Standard & Poor’s downgraded Greece’s debt rating.

QUESTIONS FOR DISCUSSION:

  1. Even if innocent of all charges, should Mr. Strauss-Kahn resign his post? Should the IMF ask him to resign his post?
  2. How is the situation likely to complicate the euro-zone crisis?
  3. How is the situation likely to impact the presidential elections in France?

SOURCE: El-Ghobashy, T., Reddy, S., & Gauthier-Villars, D. (2011, May 16). New details in IMF sex case. Wall Street Journal, p. A1. (Retrievable online at: http://online.wsj.com/article/SB10001424052748703730804576323912847808664.html)

Related video clip: Strauss-Kahn Arrest Upends IMF Leadership. (Retrievable online at: http://online.wsj.com/video/strauss-kahn-arrest-upends-imf-leadership/F16F55CA-AAB4-42C3-82FC-F66615856DB9.html)

Related video clip: Arrest Wrecks Strauss-Kahn French Presidency Hopes. (Retrievable online at: http://online.wsj.com/video/arrest-wrecks-strauss-kahn-french-presidency-hopes/B5743D50-F593-4957-9CC4-8BA7A3E949DD.html)

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