An inquiry was launched into Strauss-Kahn's alleged improper conduct in his affair with his woman subordinate Piroska Nagy while both worked at the IMF.
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International Monetary Fund Managing Director Dominique Strauss-Kahn speaks at the closing session of the annual International Monetary Fund-World Bank meeting in Washington, in this Oct. 13, 2008 file photo. |
Strauss-Kahn has admitted he had an affair with the woman economist, but he denied he had harassed her or abuse of power.
Despite clearing him of abuse of power, a statement issued by the board noted that the incident "was regrettable and reflected a serious error of judgment on the part of the managing director."