Ex-IMF chief will get out on bail to await trial on attempted-rape charges

NEW YORK — Over the objections of prosecutors, a judge agreed Thursday to free former International Monetary Fund chief Dominique Strauss-Kahn from jail on $1 million bail on the condition that he be confined to a New York apartment under armed guard while he awaits trial on attempted-rape charges.

The 62-year-old French banker and diplomat briefly wore an expression of relief after Supreme Court Justice Michael J. Obus announced his decision in a packed courtroom. Later, Strauss-Kahn blew a kiss toward his wife.

The ruling didn't immediately free Strauss-Kahn from the city's bleak Rikers Island jail. Authorities need time to review the security arrangements involved in his house arrest, which lawyers said would be at an apartment rented by his wife.

The lawyer who represented Strauss-Kahn at the hearing, William Taylor, called the ruling "a great relief for the family."

"He's going back to Rikers tonight, and we expect him to be released tomorrow," he said.

Strauss-Kahn will not only have to post the full $1 million but will also have to take out a $5 million insurance bond. A trial date was not set.

The banker is accused of attacking a 32-year-old housekeeper Saturday in his $3,000-a-night hotel suite. The West African immigrant told police that he chased her down a hallway, forced her to perform oral sex and tried to remove her stockings.

He spent nearly a week behind bars, most of that at Rikers, after a judge denied him bail on Monday. At that hearing, prosecutors warned that Strauss-Kahn might flee to France and escape justice in the United States, as film director Roman Polanski did.

This time, Strauss-Kahn went before a different judge and also offered to place himself under house arrest. Obus added the requirement that he post the $5 million insurance bond.

The bail decision came less than a day after Strauss-Kahn resigned as managing director of the IMF, the powerful organization that makes emergency loans to countries in financial crisis.

In his resignation letter, he denied the allegations against him but said he was quitting in order to "protect this institution which I have served with honor and devotion" and to "devote all my strength, all my time and all my energy to proving my innocence."

Also Thursday, prosecutors announced that Strauss-Kahn had been formally indicted on the sex charges.

Search for new fund leader starts

The United States on Thursday balked at immediately backing a European to lead the International Monetary Fund, saying only that it wanted an open and prompt succession. The resignation of Dominique Strauss-Kahn of France has set off a scramble to find a new leader for the powerful organization that directs billions of dollars to stabilize the global economy. Europe staked its traditional claim to the post, even as fast-growing nations such as China and Brazil said it's time to break that monopoly and seek an IMF chief from a developing nation. There was no indication of when a decision would be made. But a meeting of the G-8 — a group of eight developed countries — takes place next week in the seaside resort of Deauville, France, and all the major decision-makers will be there.

Ex-IMF chief will get out on bail to await trial on attempted-rape charges 05/20/11 [Last modified: Friday, May 20, 2011 12:02am]

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