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DSK

French press hounding broken man: DSK lawyer

Former IMF chief Dominique Strauss-Kahn's lawyer accused the French press on Wednesday of "putting to death a man who is already down" after reports linking him to a prostitution investigation.

Published: 16 November 2011 10:10 CET
French press hounding broken man: DSK lawyer
Guillaume Paumier (File)

Speaking on France Inter radio, lawyer Henri Leclerc said he was preparing to sue the daily Le Figaro and “several other newspapers” for breaching Strauss-Kahn’s right to privacy — an offence under French media law.

Strauss-Kahn, a 62-year-old Socialist politician and former presidential hopeful, resigned from the International Monetary Fund in May after he was arrested and accused of attempting to rape a New York hotel maid.

The US case against him eventually collapsed, but he has been dogged by scandal since returning to France.

In the latest case, his name has been linked to a judicial investigation into an illegal prostitution ring operating out of luxury hotels in the northern French city of Lille and a string of Belgian brothels.

Eight leading members of Lille society — including the director of the Carlton hotel, a businessman with ties to Strauss-Kahn’s party, a police chief and a construction company executive — have been charged.

Press reports based on leaks from the investigation have said prostitutes from the Lille network were taken to Paris and Washington to entertain the then IMF director at orgies in restaurants and five star hotels.

Strauss-Kahn has demanded to be questioned by the judges and called for a probe into the leaks, but it is not yet clear whether he will face charges.

Leclerc denounced the reports as a “sickening, trashy, grotesque campaign … led by a certain number of journalists … putting to death a man who is already down.”

“A trashy campaign has been organised to kick a man when he is down,” the lawyer alleged, repeating his demand that his client be questioned by judges and told what he is accused of.

Wednesday saw the publication of the latest set of allegations, this time in the news weekly L’Express, which featured Strauss-Kahn on its front cover photographed in a grey beard looking tired and depressed.

Inside, the magazine carried an interview with a pimp said to have supplied women to the Lille ring, private testimony from some of the prostitutes and excerpts of alleged tapped telephone calls between suspects.

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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).

Published: 9 September 2018 14:08 CEST
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