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Banon ‘pushed back’ so ‘I released my grip’: DSK

Former IMF chief Dominique Strauss-Kahn told police he grabbed the young woman who has accused him of attempted rape, but released her when she resisted, according to a transcript seen by AFP.

Banon 'pushed back' so 'I released my grip': DSK
WTO, Felix Wang

“I tried to take her in my arms. I tried to kiss her on the mouth. She pushed back firmly. She cried out, more or less, ‘Are you mad?’ I immediately relaxed my grip. She grabbed her things and left the flat, furious,” he said.

On Thursday, French prosecutors halted an investigation into young writer Tristane Banon’s claim that Strauss-Kahn, a politician and family friend 30 years her senior, had tried to rape her in an unfurnished Paris flat in 2003.

The magistrates said that, while Strauss-Kahn had admitted to acts “that could be qualified as sexual assault”, the statute of limitations on such an offence — more minor than attempted rape — was only three years.

For 32-year-old Banon’s lawyer, the ruling was a partial victory, allowing him to claim that it showed that his client had not invented the incident to smear Strauss-Kahn, as the accused and his supporters once claimed.

“He will have to be satisfied with being an unconvicted sex attacker, protected by the statute of limitation from criminal charges, but not from legitimate suspicion about his behaviour towards women,” her lawyer said.

The lawyer, David Koubbi, said the decision “while unsatisfactory, is a first victory for Miss Banon as, after five months of fierce combat, it has been established beyond doubt that her case is not without substance.”

Having failed to convince state prosecutors to take up the case, she has not ruled out lodging a personal complaint, in which case an independent investigating magistrate would have to re-examine the evidence.

Strauss-Kahn’s lawyers argue that the prosecutor’s decision to drop the case leaves their client “completely cleared” and supports his claim that, while he “made and advance” on Banon, he had not been violent.

“When someone is the subject of a complaint and this complaint is shelved without charge, that means there’s no grounds for prosecution. That’s called being cleared,” said Frederique Beaulieu.

Banon and Strauss-Kahn were interviewed by police during the inquiry.

She claims he lured her to a bare Paris flat on the pretext of giving her an interview for a book she was researching, then grappled with her “like a rutting chimpanzee” while attempting to pull off her jeans.

The former IMF director also still faces a civil suit in New York, where another young woman, a hotel chamber maid, claims he tried to rape her in May.

Strauss-Kahn again denied violence but admitted he had had a sexual encounter with the maid during her seven-minute visit to clean his room.

He was charged in a New York court, but prosecutors dropped the case amid doubts over the woman’s testimony. She is pursuing a civil case for damages.

The New York scandal effectively torpedoed 62-year-old Strauss-Kahn’s plan to challenge President Nicolas Sarkozy in next year’s presidential election, forcing him out of a race in which he was the clear favourite.

Since his return to France he has tried to rebuild some of his reputation, apparently with an eye to some kind of return to frontline politics, and he and Banon have continued to joust in alternating media appearances.

This week, Banon launched her latest book, a 128-page novelisation of her experiences, extracts of which were published in this week’s mass circulation Paris Match news magazine.

In “Le bal des hypocrites” (The Hypocrites’ Ball) she does not identify her alleged attacker by name, but refers instead to a “pig” and a “baboon man”.

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ECONOMY

World unprepared for next financial crisis: ex-IMF chief Strauss-Kahn

The world is less well equipped to manage a major financial crisis today than it was a decade ago, according to Dominique Strauss-Kahn, a former chief of the International Monetary Fund (IMF).

World unprepared for next financial crisis: ex-IMF chief Strauss-Kahn
Former French Economy Minister and former managing director of the International Monetary Fund (IMF) Dominique Strauss-Kahn , poses during a photo session in Paris on Thursday. Photo: JOEL SAGET / AFP
In an interview with AFP, the now-disgraced Strauss-Kahn — who ran the fund at the height of the 2008 financial meltdown — also said rising populism across the world is a direct result of the crisis. 
 
Strauss-Kahn resigned as head of the IMF in 2011 after being accused of attempted rape in New York, although the charges were later dropped. He settled a subsequent civil suit, reportedly with more than $1.5 million.
 
Q: When did you become aware that a big crisis was brewing?
 
A: When I joined the IMF on Nov 1, 2007, it became clear quite quickly that things were not going well. That is why in January 2008, in Davos, I made a statement that made a bit of noise, asking for a global stimulus package worth two percent of each country's GDP. In April 2008, during the IMF's spring meetings, we released the figure of $1,000 billion that banks needed for their recapitalisation.
 
Q: Did the Bush administration grasp the danger of Lehman Brothers going bankrupt?
 
A: No, and that is why Treasury Secretary Henry Paulson decided not to save Lehman, because he wanted to make an example of it in the name of moral hazard. Like everybody else, he considerably underestimated the consequences. Allowing Lehman to go under was a serious mistake. Especially because only a week later they were forced to save the insurer AIG, which was much bigger.
 
Q: Ten years on, are we better equipped to deal with a crisis of such a magnitude?
 
A: No. We have made some progress, particularly in the area of banks' capital adequacy ratios. But that is not nearly enough. Imagine Deutsche Bank suddenly finding itself in difficulty. The eight percent of capital it has at its disposal are not going to be enough to solve the problem. The truth is that we are less well prepared now. Regulations are insufficient.
 
Q: How so?
 
A: After 2012-2013 we stopped talking about the need to regulate the economy, for example concerning the size of banks, or concerning rating agencies. We backtracked, which is why I am pessimistic about our preparedness. We have a non-thinking attitude towards globalisation and that does not yield positive results.
 
Q: Do we still have international coordination?
 
A: Coordination is mostly gone. Nobody plays that role anymore. Not the IMF and not the EU, and the United States president's policies are not helping. As a result, the mechanism that was created at the G20, which was very helpful because it involved emerging countries, has fallen apart. Ten years ago, governments accepted leaving that role to the IMF. I'm not sure it is able to play it today, but the future will tell.
 
Q: Do you believe that Donald Trump's election is a consequence of the crisis?
 
A: I believe so. I'm not saying that there was a single reason for Trump's election, but today's political situation is not unconnected to the crisis we lived through, both in the US with Trump and in Europe.
 
Q: Connected how?
 
A: One of the consequences of the crisis has been completely underestimated, in my opinion: the populism that is appearing everywhere is the direct outcome of the crisis and of the way that it was handled after 2011/2012, by favouring solutions that were going to increase inequalities.
 
Quantitative easing (by which central banks inject liquidity into the banking system) was useful and welcome. But it is a policy that is basically designed to bail out the financial system, and therefore serves the richest people on the planet.
 
When there's a fire, firemen intervene and there is water everywhere. But then you need to mop up, which we didn't do. And because this water flowed into the pockets of some, and not of everyone, there was a surge in inequality.
 
By AFP's Antonio Rodriguez