Tyler Durden's picture

The most anticlimatic news of the week is that, as everyone expected, DSK has resigned his post as IMF head. "“I want to devote all my strength, all my time, and all my
energy to proving my innocence,” Strauss-Kahn said in a
statement released by the Washington-based IMF four days after
his arrest on sexual-assault charges. The fund said it will
comment “in the near future” on the succession. Strauss-Kahn, 62,
had been leading polls for France’s 2012 presidential election." And with his passage, the Feudal (as defined by El-Erian) "conclave" to pick his successor begins. Per Bloomberg: "European officials, who have picked IMF heads for 65 years under a deal that also gives the U.S. the lock on the top World Bank post, moved to retain the privilege, with Sweden backing French Finance Minister Christine Lagarde. Russia and South Africa have called for an emerging-market candidate, while some Asian policy makers suggested someone from their region." And now the specter of mutual assured destruction posturing shifts to selecting a desired candidate quickly. "Time is of the essence,” said Julie Chon, a senior fellow at the Washington-based Atlantic Council and former adviser to the U.S. Senate Banking Committee. “The longer the IMF allows the specter of uncertainty to hang over its leadership, the more exposed it becomes to the jittery actions of sovereign debt and foreign-exchange traders who have been speculating on what the leadership vacuum means for their portfolios."

As a reminder, according to the Economist, here are the odds for the most likely replacement:

And some more from Bloomberg:

Strauss-Kahn’s five-year term had 17 months remaining. In past successions, incoming managing directors were appointed to fresh five-year tenures.

“I would argue that Christine Lagarde has outstanding credentials,” Swedish Finance Minister Anders Borg said in a Bloomberg Television interview today. Her gender is also an “advantage” since “half of the world has not been represented as managing director,” he said.

Nout Wellink, a European Central Bank Governing Council member, told the Dutch talk show Knevel & Van den Brink late last night: “I know a fantastic candidate, that’s Jean-Claude Trichet,” whose term as ECB president ends in October.

Japan, which has the second-biggest share of voting power at the IMF with 6.25 percent, has yet to decide its stance on a Strauss-Kahn successor, Tetsuro Fukuyama, the government’s deputy chief cabinet secretary, told reporters in Tokyo today.

The U.S., which has the largest share of votes, at 16.8 percent, has also given no indication of a preference.

South African and Russian officials said yesterday the next head should come from an emerging economy. Trevor Manuel, head of South Africa’s National Planning Commission, is “highly respected in the world,” Finance Minister Pravin Gordhan said of his predecessor in an interview in Pretoria.

Russian central bank Deputy Chairman Sergei Shvetsov said a developing country should be given the chance to run the IMF to better reflect the role of those economies in global trade. South Korea’s central bank governor made similar remarks before the announcement late yesterday that Strauss-Kahn would resign.

“A new brand of leadership will send a positive signal that the IMF is indeed responsive to the changing world,” Philippine Finance Secretary Cesar Purisima said in a mobile phone text in response to questions. “Wherein Asia increasingly plays a major role as a growth driver of the global economy, there is no time more fitting than now for an Asian leader to take the helm.”

Thai Finance Minister Korn Chatikavanij told his Singapore counterpart, Tharman Shanmugaratnam, he should apply for the job if it opens, the Post Today newspaper reported today.

“So far the leader of IMF is always from Europe -- we would welcome an opening to a candidate from Asia,” Indonesian Finance Minister Agus Martowardojo told reporters today in Jakarta.

At least the new IMF head does not have to convince his voters that breaching the debt ceiling, double digit unemployment, a collapsing middle class and near record gas prices are more than offset by the Russell 2000 being at new record highs...

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anynonmous's picture
Christine Lagarde: 'There should never be too much testosterone in one room'


RichyRoo's picture

Gee in the old days ZH would have had this up before the MSM... </snark>

Or what I could have said was 'What took you so long?'

oguz's picture

ohh poor old guy

Conrad Murray's picture

Still wondering if suicide watch was real because he found out he might have the AIDS, or put on to keep him from getting a righteous beatdown.

Anyhow, newest Rap News is out...Osamacide


EscapeKey's picture

Well done, Jamie Dimon, Blankfein, etc. DSK could have been taken out in 2008 along with Spitzer, but he played along with the plan. But I guess it was always a good ace to have hidden, in the event he, say, suggested senior bondholders were in line for haircuts.

/If Gordon Brown gets the job, then it's beyond farcical. That guy fucked the economy of the UK right up the arse.

Quintus's picture

"If Gordon Brown gets the job, then it's beyond farcical. That guy fucked the economy of the UK right up the arse."

Which make the gurning fool a perfect choice to implement the IMF's Slash and Burn agenda in other countries.

Mae Kadoodie's picture

When will IMF get new head?

Hard1's picture

Don't worry, someone will give them head soon enough ;P

TexDenim's picture

I hope Ben Bernanke gets the offer and takes it. Then perhaps the US economy can begin to recover. Let Zimbabwe Ben ruin European markets now.

israhole's picture

As if the world really needs an IMF.  

YHC-FTSE's picture

Agree with your sentiment, but it exists, and while it does we might as well hope to have the least evil bastard running it. 


I want Gordon Brown or Axel Weber, the most likely to re-evaluate the SDR. It's more likely to be Lipsky or Rhee (Who doesn't even seem to know how old he is - a good start), if TPTB want the status quo.

Rynak's picture

Actually, no..... tactically, the most useful behavior of the IMF, would be to do lots of shit that really antagonizes the population, yet cause less permanent damage. So, you know - politically incompetent.

YHC-FTSE's picture

Politically incompetent..... Well, that would be all of them! Rhee maybe, since he doesn't seem to know how to count above 10.

oogs66's picture

this reads like a press release for picking a new pope.  does the IMF use white and black smoke too?

achmachat's picture

wouldn't it be the funniest thing if Brown actually became the new head of the IMF, then immediatley sell 50% of their gold?

YHC-FTSE's picture


Actually, I would welcome that input into the gold supply. It'll depress prices for a bit and give me a chance to buy more. Anyone want to buy 1400 tonnes of gold with me?

Azannoth's picture

Stop the posturing, the new Head will be the same as the old head, A Joo anywas


jkruffin's picture

Tyler,  thanks for the tweet on this one yesterday, easy money shorting this fraud:

Look like YONG is going to take another big collapse today. Another Red Flag Review Report out this morning already.



Wonder how the longs over on Yazoo board who are still trying to pump this fraud are going to refute this report?  Some people never learn, especially gullible Americans.

YONG is just another China fraud. No one can even reach the two guys that are the entire company reportedly running a business from a government closed area.

AUD's picture

I suggest me. I'm happy to fly first class & I promise I'll stick to high priced hookers at reputable establishments.


cowdiddly's picture

Ah flying first class. You get to board the plane first and then wait the entire time while the rest of the plane boards. But egos and diffentiation are worth it of course and the seat is two inches wider for my fat ass and every one gets to go Look at Me. Ill take a seat by the exit doors thanks

oogs66's picture

it would seem that you have never flown international....1st class international is not merely the 2 inches extra you get on a domestic flight :)

cowdiddly's picture

Na Ive never flown international. Im married to a foriegn wife. I was in the military and then worked all over the globe for 20 years. It isnt what its cracked up to be. You can have international travel too, unless its a one way flight.

postafoa02's picture

i would not be so fast condemning this man, this guy is the head of the International Monetary Fund, and had a busy morning:


take shower

rape the black muslim maid

have lunch with daughter

take a cab ride to a prescheduled flight


i ask you, which one does not fit?


looks like a sloppy setup by Sarkozy, that little reptile is a nasty case.


maybe the illuminist wanted to continue to use the IMF as their little looting and pillaging cash cow, and DSK didn't want that? Remember the guy now in charge is JPM, the sam eguys rigging all the markets.

jkruffin's picture

One of these things is not like the others,
One of these things just doesn't belong,
Can you tell which thing is not like the others
By the time I finish my song?

Did you guess which thing was not like the others?
Did you guess which thing just doesn't belong?
If you guessed this one is not like the others,
Then you're absolutely...right!

Another version:

Three of these things belong together
Three of these things are kind of the same
Can you guess which one of these doesn't belong here?
Now it's time to play our game (time to play our game).

postafoa02's picture


edit: Also i think the americans might be making a big mistake here treating him this harsh. If i was an foreign diplomat in a high post in international finance, i would think twice about spending alot of time in the US. This is all following Martin Armstrong's premise described well in his recent Raj piece for ex:







or any of those articles


YHC-FTSE's picture

Said as much as the news broke on Sunday, and got widely junked by the unwashed more fascinated by the details of sodomy and banksta justice. The tweets sent out by Sarkozy's campaign people about DSK's arrest before the NYPD even announced it is all I need to know. The misreporting of the case by the MSM shows volumes too.

aerojet's picture

I'm at least glad others realize this setup.  The MSM has already convicted the man and the whole story makes no sense.  It's a setup, has to be, and it has to have been perpetrated by somebody who didn't look favorably on his policies, someone who might default in the very near future, perhaps?

flattrader's picture

BS on set-up.

The evidence will tell the tale.  There will no doubt be some DNA and this as well...


May save him or not...

He first denied being in the room with her at the same time.

jkruffin's picture

sorry duplicate

Ace Ventura's picture

Interesting. I always figured DSK as a player who fully understood and was agreeable to the overall agenda of TPTB. If they're serving him up like this, one has to wonder what he REALLY did to piss them off?

As for the IMF itself the only thing I wish to see regarding it, can best be illustrated in the last few scenes in Fight Club.

Redneck Makin-tosh's picture

I believe the maid.

However, if there were a hidden agenda, could it perhaps have been a warning to others to remember to do as they are told during the coming formal transfer of power? I find it hard to believe that a politician can have done very much at all in the post, far less pissed anyone off.

chuckroan's picture

So let me get this straight.... resign from IMF.. suddenly you make bail.

Next headline... DSK slips back to France

Ferg .'s picture

It looks as if DSK's political career is irrevocably finished . I know we shouldn't jump to conclusions until all the evidence has been weighed up , but new accusations seem to be pouring in from all quarters each and every day . And as I'm sure many people have noticed , a common theme from these sources has been Kahn's aggressive behaviour . 


It certainly seems plausible to me that he is in fact guilty of this current charge and will spend much of the remainder of his life in a US prison . On a related note , coming from a European background where sentences are much more lenient , I'm stunned that the American justice system fails to act as a major deterrent and that crime rates remain so high . To be perfectly frank , I'd be scared shitless of committing a crime in the US . 

aerojet's picture

What the fuck are you talking about?  The US is a den of crime, look at all the banksters who committed the greatest heist in history and are all free men.  The US "justice" system is one in which if you have enough cash, you can buy your freedom.  I doubt very much the IMF guy does any hard time.  The only reason they are treating him badly is because they were told to.  We got the perp walk video on Good Morning America, and it's a ten minutes' hate against the rich foreign guy.  Meanwhile, the real crooks laugh it up and give each other high fives.

youngman's picture

I do not know why he quit...lots of criminals run their crime syndicates from prision...

ivana's picture


Greek & PIIGS policy?


Poor bastard did not fit somewhere or everywhere very well... anyway RIP DSK.

Herman Strandschnecke's picture


His office desk is missing the dsk.

mick_richfield's picture


( FYI. )


AldoHux_IV's picture

Sounds to me like a great opportunity to end the IMF.

Papasmurf's picture

It was an honset mistake.  He had arranged for whore services on Craigslist and then the cleaning lady walked in.  Besides, it was consentual because he consented.  Banksters are entitled to take whatever they want, arent they? 

This morning the news announced there "may be DNA evidence on the hotel carpet".  I wonder how they will sort out the hundreds of different DNA samples they collected there.


aerojet's picture

if the evidence wasn't taken from the victim, how well does that hold up in court, assuming the case goes to trial?

Fíréan's picture

Has the Geithner voiced any preferences  for the post ?

Element's picture

ha! .. then they let the skunk out on bail ... nicely played