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IMF Chief Probed Over Affair

Investigation rattles key organization during financial crisis

By Matt Cantor, Newser Staff

Posted Oct 18, 2008 9:51 AM CDT

(Newser) – In a shakeup amid the financial crisis, the International Monetary Fund is investigating whether its managing director abused his position in an affair with a subordinate, the Wall Street Journal reports. Backed by US and Russian representatives, Egypt’s rep to the IMF called for the probe into the relationship between Dominique Strauss-Kahn and a woman who at the time was a senior official in the Africa department.

"At no time did I abuse my position as the Fund's managing director,” Strauss-Kahn said, calling the relationship an “incident which occurred in my private life.” The investigation has sparked controversy because not all 24 members of the IMF’s board knew about it until the Journal asked about the matter. The woman resigned in August, as the IMF culled jobs, and, a source said, the probe hasn't found proof that her buyout package was inappropriate.

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IMF Managing Director Dominique Strauss-Kahn speaks at the International Monetary Fund headquarters in Washington, Oct. 13, 2008. (AP Photo/Jose Luis Magana)

IMF Managing Director Dominique Strauss-Kahn is under investigation over his relationship with a subordinate. (AP Photo/Jose Luis Magana)

IMF Managing Director Dominique Strauss-Kahn is shown at the International Monetary Fund headquarters in Washington, Oct. 13, 2008. (AP Photo/Jose Luis Magana)

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At no time did I abuse my position as the Fund's managing director. - Dominique Strauss-Kahn

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IMF Chief Probed Over Affair