Whew. It looked for a moment like Domminique Strauss-Kahn, head of the IMF, might go down in a sex scandal at the worst possible time. Although Strauss-Kahn did have a sexual relationship with subordinate Piroska Nagy, the IMF’s governing board decided he did not abuse his position:
WSJ: A. Shakour Shaalan, the longest serving member of the board, chaired the Saturday session where it discussed Mr. Strauss-Kahn’s behaviour. Mr. Shaalan said the board decided unanimously not to censure Mr. Strauss-Kahn. But after the meeting, he said, “I personally spoke to him … and informed him this should not happen again.”
Essentially the outside law firm, Morgan Lewis & Bockius, looked at two issues: had Mr. Strauss-Kahn abused his power in starting the relationship and had he either favoured or punished Ms. Nagy as a result. The law firm found that he had done neither.