Former IMF chief Dominque Strauss-Kahn will be brought face-to-face on Thursday with the young French writer who has accused him of trying to rape her, according to a source close to the investigation.

"/> Former IMF chief Dominque Strauss-Kahn will be brought face-to-face on Thursday with the young French writer who has accused him of trying to rape her, according to a source close to the investigation.

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DOMINIQUE STRAUSS-KAHN

DSK to face Banon on Thursday: source

Former IMF chief Dominque Strauss-Kahn will be brought face-to-face on Thursday with the young French writer who has accused him of trying to rape her, according to a source close to the investigation.

The politician will encounter 32-year-old Tristane Banon in an interview suite in the Paris police criminal investigation department’s headquarters as part of the probe into the alleged 2003 assault, the source told AFP.

Banon has already said she is ready to confront her alleged attacker, and Strauss-Kahn’s lawyers have said he is “at the disposal” of the police as he battles to clear his name — now tarnished by two sex assault allegations.

Both parties have been interviewed by police over the alleged incident.

“The police unit asked me whether I was prepared to accept a confrontation. Obviously, I said: ‘Yes’. I want him in front of me so he can look into my eyes and say to my face that I imagined it,” Banon said last week.

Strauss-Kahn has lodged a lawsuit for slander against Banon over her claim, which he has called “imaginary”.

The 62-year-old’s career as managing director of the International Monetary Fund came crashing to an end in May when a New York hotel chambermaid accused him of sexual assault and he was arrested.

The case dashed his hopes of winning the French Socialist Party’s nomination to run for president next year, but his multimillionaire heiress wife stood by him and paid for a luxury Manhattan townhouse during his house arrest.

The New York prosecutor’s case collapsed last month after doubts emerged over the credibility of his accuser, Guinean immigrant Nafissatou Diallo, and the man the French call “DSK” made a triumphant return to Paris.

But French police were waiting to interview him about Banon’s allegations, which she first made publicly on television in 2007 and brought to magistrates this year after the New York case came to light.

She has claimed that Strauss-Kahn — 30 years her senior and a friend and one-time lover of her mother — lured her to an unfurnished Paris flat in 2003 on the pretext of offering her an interview for a book she was writing.

She descibes him grabbing her “like a rutting chimpanzee”, attempting to pull off her jeans and forcing her to kick and shout before escaping.

According to a source close to the inquiry, Strauss-Kahn told investigators that he had “made an advance” on her but had backed down on receiving a refusal and had at no point been violent or attempted to force himself on her.

Banon’s complaint is for attempted rape rather than sexual assault, and if the prosecutor decides to downgrade the charge Strauss-Kahn would not be charged on the lesser crimes because of the statute of limitations.

Regardless of the result of the criminal inquiry, Banon has vowed to lodge a civil suit against him, even as Strauss-Kahn will pursue his defamation suit against her. Diallo is also seeking damages in a New York civil case.

Strauss-Kahn was the pollsters’ favourite to win next year’s presidential election and oust the unpopular incumbent Nicolas Sarkozy, and the cases have provoked a political earthquake in France.

The ongoing Socialist primary campaign is now a more open race, with former Strauss-Kahn rival Francois Hollande expected to win.

In a television interview, Strauss-Kahn said he had abandoned his presidential bid for now.

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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