White House expresses confidence in IMF after Strauss-Kahn arrest

 The White House on Monday said that it believes the International Monetary Fund will not be hampered by the arrest Saturday of its managing director, Dominique Strauss-Kahn, on sexual assault and attempted rape charges.

“We’re confident that the IMF will continue to function effectively,” White House spokesman Jay Carney said aboard Air Force One. He declined to comment on the specifics of the case. 

Strauss-Kahn on Monday was held without bail pending grand jury action after making an initial appearance in court. His attorneys said he was denying all charges, according to media reports. 

The IMF is charged with finding a solution to several debt crises in Europe in conjunction with the European Union. Officials in Brussels are meeting on the fiscal situation in Portugal and Greece on Monday.

Portugal is seeking a bailout from other European nations who have been reluctant to cover its obligations, accrued over years of overspending.

The failure of those talks could sink the global economic recovery and has the potential to plunge the U.S. into another recession.

Strass-Kahn has been arrested in connection with the alleged attempted rape of a Hotel Sofitel maid in Manhattan. He was pulled off a Saturday flight to Paris by police moments before departure.

The IMF has put deputy John Lipsky, an American, in charge of the IMF on an interim basis.