Jailed IMF chief faces growing pressure to quit

NEW YORK/WASHINGTON,  (Reuters) – Dominique  Strauss-Kahn faced growing pressure on Tuesday to quit as head  of the IMF after his arrest on attempted rape charges, as some  French politicians expressed outrage over his treatment by U.S.  authorities.

The battle to succeed Strauss-Kahn, who is alone in a cell  at New York’s notorious Rikers Island jail, heated up when  China, Brazil and South Africa challenged Europe’s  long-standing grip on a job that is pivotal to the world  economy.

The IMF chief is expected to remain in the jail, known for  its gang violence, at least until his next appearance in court  on Friday, when his lawyers may again request bail.

Dominique Strauss-Kahn

It could be six months before a trial begins, legal experts  said. A law enforcement source said Strauss-Kahn was under  suicide watch as a precautionary measure.

The IMF said it had not been in touch with Strauss-Kahn  since his arrest, but believed it would be important to do so  “in due course.” Two IMF board sources told Reuters the board  would ask Strauss-Kahn whether he planned to continue in his  post. One of the sources said it would be ideal if Strauss-Kahn  resigned. The second source said that sentiment was not shared  across the 24-member board, which has the authority to remove  him.

Strauss-Kahn is accused of a violent sexual attack on a  maid who came to clean his luxury suite at the Sofitel hotel in  Manhattan on Saturday, and of trying to rape her. His lawyer  has said he will plead not guilty. If convicted, he could face  25 years in prison.

In the United States, which is the IMF’s biggest  shareholder, politicians began questioning the viability of his  tenure as head of the institution charged with managing the  world economy and central to negotiating debt crisis deals.

“I can’t comment on the case, but he is obviously not in a  position to run the IMF,” U.S. Treasury Secretary Timothy  Geithner said.

John Lipsky, the second in command, is in charge during  Strauss-Kahn’s absence, but no formal interim chief has been  named. IMF sources told Reuters that David Lipton, White House  international economic adviser and former deputy treasury  secretary, would take Lipsky’s deputy position.

Strauss-Kahn’s arrest has thrown the IMF into turmoil just  as it is playing a key role in helping euro zone states like  Greece and Portugal tackle debt woes.

Senate Foreign Relations Committee Chairman John Kerry  stopped short of calling for Strauss-Kahn’s resignation, but he  called the circumstances of the case “troubling if not  damning.”

“If the evidence is what it appears to be, I think it would  be very difficult for him to manage” as IMF head, Kerry said.

In Europe, Strauss-Kahn was also losing support.

“Given the situation, that bail has been denied, he has to  consider that he would otherwise do damage to the institution,”  said Austrian Finance Minister Maria Fekter.

Spanish Economy Minister Elena Salgado cast doubt on  Strauss-Kahn’s judgment, and said it was up to the IMF chief to  make a decision on resignation.

“That is a decision which it is to up to Mr. Strauss-Kahn  to take, but the crimes he is accused of are very serious …  .My solidarity first and foremost is with the woman who  suffered the attack, if that was what happened,” she told  reporters.

OUTRAGE

But in France, President Nicolas Sarkozy urged center-right  lawmakers at a closed-door breakfast to show “restraint and  dignity” and refrain from comment on the Strauss-Kahn case,  participants said.