Three candidates are touring the globe in their effort to become the next head of the IMF. I believe it is a shoo-in for French finance minister Christine Lagarde but two other candidates have their hat in the ring.
Israel’s Stanley Fischer Announces Bid to Head the IMF
Mexico’s IMF Candidate is Agustin Carstens
Lagarde backs the ECB stance of no haircuts on sovereign debt. It’s certainly the right policy if you are running for the IMF. Otherwise it’s flawed.
Note that the French court conveniently delayed a review of charges against Lagarde until after the election.
A French court has postponed a decision on whether to open an investigation into Christine Lagarde, the country’s finance minister and front-runner to take the helm at the International Monetary Fund, a judicial official said yesterday.
The Court of Justice of the Republic, a special tribunal that handles legal matters involving government ministers, will announce its decision on July 8, the official said. She was speaking on condition of anonymity, in accordance with French judicial policy.
Questions have been raised about Lagarde’s role in getting arbitration in 2008 for French businessman Bernard Tapie, who won $449 million as compensation for the mishandling of the sale of sportswear maker Adidas.
Lagarde has denied any wrongdoing.
She is on a world tour to support her bid to be the next managing director of the IMF. Nominations for managing director closed yesterday, and the body’s 24-member executive board is to vote June 30.
A poll in The Guardian asks Would Christine Lagarde make the best head of the IMF?
1. Yes, she’s got a distinguished record
2. No, emerging nations need more of a say
Sadly, those are the only two choices the Guardian offers. What if someone does not think much of Lagarde, but does not want to give emerging markets more of a say?
Here is a poll with a lot more choices, including “no one”. Note: The discussion above has biased my poll, but at least all the relevant answers are listed.
Mike “Mish” Shedlock
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