Tim Geithner Calls For Official Interim IMF Chief, Others For Resignation

05/18/2011 11:29 am ET | Updated Jul 18, 2011

Dominique Strauss-Kahn's fall from grace has been nearly as quick as it's been painful.

On Saturday, the head of the International Monetary Fund, previously considered a leading 2012 candidate for president of France, was arrested in New York City on charges of sexual assaulting a hotel housekeeper. By Wednesday, Strauss-Kahn, who has been denied bail, found himself in prison and on suicide watch, his reputation in shambles.

With the global economy still recovering from recession and dealing with debt crises, Treasury Secretary Timothy Geithner emphasized on Tuesday the importance of the IMF quickly and "formally" appointing an interim leader, according to Bloomberg.

"There's a lot going on in the world," Geithner said. "[Y]ou want the IMF to have the capacity to be helpful in that context," and Strauss-Kahn currently is "obviously not in a position" to do that, he continued, according to Bloomberg.

Even before Geithner's comments, some European leaders, including Austrian finance minister Maria Fekter, called for Strauss-Kahn's resignation.

"Considering the situation, that bail was denied, he has to figure out for himself, that he is hurting the institution," Fekter said to journalists, according to the Guardian.

Elena Salgado, Spain's finance minister, agrees that Strauss-Kahn must decide for himself whether to step down over the "extraordinarily serious" charges, according to the Financial Times.

Since Strauss-Kahn's arrest, additional revelations have floated to the surface, too. One employee who claimed have a brief affair with Strauss-Kahn had warned of his behavior in writing three years ago, saying Strauss-Kahn might not be fit to hold such a powerful position. An official within the French Socialist Party has also come forward to say her daughter was attacked by Strauss-Kahn in 2002.

In France, 57 percent of those polled say they believe Strauss-Kahn has been the subject of a plot. Among French Socialists, that number rises to 70 percent, according to the Guardian.

Most immediately, Strauss-Kahn's resignation has thrown the state of the Greek debt crisis into doubt. Strauss-Kahn had been been particularly flexible with Greece during bailout talks, according to multiple reports. On Wednesday, an IMF envoy said that unless the debt-ridden country can sharply accelerate necessary reforms, Greece's debt program "will run off track."