Treasury Secretary Timothy F. Geithner on Tuesday added his voice to a growing chorus of world financial leaders calling on Dominique Strauss-Kahn to step down as head of the International Monetary Fund.
With the controversial IMF director in a New York jail under a suicide watch for alleged sexual crimes, “he’s obviously not in the position to run the IMF,” and the IMF’s executive board should designate an interim head, Mr. Geithner told a conference in New York.
Other top global finance leaders also urged Mr. Strauss-Kahn not to allow his jailing on charges of sexually assaulting a hotel maid to undermine confidence in the IMF, which has been a force for global economic stability in recent years.
The IMF board could move soon to oust Mr. Strauss-Kahn if he insists on remaining in his post, analysts suggested. Moreover, some diplomats said a European country should no longer be guaranteed stewardship of the agency with the global economy now increasingly driven by emerging powers in Asia and Latin America.
“It’s time to consider not just an automatic European for the IMF,” said Tovar Nunes, a spokesman for the Brazilian Foreign Ministry. Candidates should be judged on their credentials, not their countries, he told the Associated Press.
Support for Mr. Strauss-Kahn, a Frenchman, eroded even in Europe. In Brussels, Austrian Finance Minister Maria Fekter called on Mr. Strauss-Kahn to resign so he wouldn’t damage the fund. Her Spanish counterpart, Elena Salgado, spoke of solidarity with the woman Mr. Strauss-Kahn is accused of assaulting.
“Considering the situation, that bail was denied, he has to figure out for himself that he is hurting the institution,” Miss Fekter said Tuesday as she arrived at a meeting of European finance ministers.
Mr. Strauss-Kahn has said nothing about his future at the IMF. He was denied bail and is in a New York jail after his weekend arrest. He is due to appear next in court on Friday.
“From a perception standing, his resignation wouldn’t be a wise move,” said Edward Flaherty, an American lawyer in Geneva who represented a woman who accused former Dutch prime minister and U.N. refugee chief Ruud Lubbers of sexual harassment in 2004. Mr. Lubbers later resigned from his U.N. post.
“Legally, it has no bearing. But perception is very important in criminal cases,” Mr. Flaherty said.
He argued that the best strategy for Mr. Strauss-Kahn would be to take a leave of absence so he can focus on his legal defense. That also might be the most convenient approach for the IMF because it would be difficult to remove Mr. Strauss-Kahn in the absence of a criminal conviction or an acknowledgment of wrongdoing.
A leave of absence would mean the organization would lack steady leadership while it faces a major crisis in Europe.
Among possible replacements for Mr. Strauss-Kahn are at least four fellow Europeans: French Finance Minister Christine Lagarde; the former head of the German central bank, Axel Weber; the head of Europe’s bailout fund, Klaus Regling; and Peer Steinbrueck, a former German finance minister.
Candidates from elsewhere include Kemal Dervis, a former Turkish finance minister; Singapore’s finance chief Tharman Shanmugaratnam; and Indian economist Montek Singh Ahluwalia.
Other possibilities include Trevor Manuel, South Africa’s former finance minister; Mexico’s central bank governor, Agustin Carstens; former Brazilian central bank president Arminio Fraga; and China’s Zhu Min, a special adviser to Mr. Strauss-Kahn.
c Washington Times reporter Patrice Hill and AP writer Pan Pylas contributed to this report.
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