From his prison cell in New York, Dominique Strauss-Kahn has announced his resignation as head of the International Monetary Fund.
The 62-year-old spoke of his “infinite sadness” at stepping down with immediate effect but said he needed to devote all his strength to fight the charges of sexual assault he faces. He went on to strenuously deny the claims once more.
Dominique Strauss-Kahn was refused bail at a court hearing in Manhattan on Monday. Another bail hearing is now underway. The embattled Frenchman is said to have waived his extradition rights, agreed to wear an electronic tag and promised to stay in a New York apartment in a bid to clinch bail. A grand jury or committal hearing will follow on Friday.
There has been mounting pressure for him to tender his resignation. US Treasury Secretary Timothy Geithner, among others, said he was in no position to head the IMF.
Some think the organisation itself is likely to suffer from the fall-out. It is feared confidence in the IMF may be eroded, and its effectiveness undermined at a crucial time for the global economy.