Another sex scandal at the International Monetary Fund. The last thing the world financial crisis needs...

WSJ: The International Monetary Fund has launched an investigation into whether its chief, Dominique Strauss-Kahn, abused his position in connection with a sexual relationship with a subordinate, in a case that could roil a key global institution at a crucial moment in the world financial crisis...

"There was an allegation concerning improper behavior of a personal nature on the part of the managing director," said Masood Ahmed, the IMF's chief spokesman. "All allegations, particularly relating to senior management, need to be investigated."

In a statement, Mr. Strauss-Kahn said: "I have cooperated and am continuing to cooperate with outside counsel to the Fund concerning this matter." He said the "incident which occurred in my private life" took place in January 2008. "At no time did I abuse my position as the Fund's managing director."

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