Monday, May 16, 2011

Markets Suffer as IMF Chief Dominique Strauss-Kahn Arrested

“IMF will remain fully functional and operational” – Caroline Atkinson, IMF Spokesperson.

This weekend’s biggest news hit the media that reported the arrest of Dominique Strauss-Kahn, Head of International Monetary Fund.

He is expected to plead not guilty at his arraignment Monday, following allegations that the Frenchman sexually assaulted a maid in a swank New York City hotel. According to an account the woman provided to police, Kahn emerged from the bathroom naked, chased her down a hallway and pulled her into a bedroom, where he began to sexually assault her. She said she fought him off, then he dragged her into the bathroom, where he forced her to perform oral sex on him and tried to remove her underwear. The woman was able to break free again and escaped the room and told hotel staff what had happened and police was called.

Anne Sinclair, who is a TV journalist and wife of Kahn said "I do not believe for one second the accusations brought against my husband. I have no doubt his innocence will be established,"

In 2008, Dominique was investigated over whether he had an improper relationship with a subordinate female employee. The IMF board found that the relationship was consensual, but called his actions "regrettable" and said they "reflected a serious error of judgment."

BUT markets have felt the jolts!

Gold prices kicked off the week on a softer note Monday, as the dollar gained following the news of Dominique’s arrest. Gold for June dropped $3.20 to $1,490.30 an ounce in electronic trading on Monday. Silver prices also weakened, with silver for July delivery dropping 36 cents to $34.65 an ounce!
Europe is also worried, Kahn had been one of the key players working to address Europe’s debt crisis. The euro has suffered, falling 7 weeks low. Asian shares took a dip over concerns about European sovereign debt woes.
Watch for developing news on media.

No comments: