World Bank Chief Paul Wolfowitz Resigns

May 17, 2007
World Bank Chief Paul Wolfowitz Resigns

World Bank President Paul Wolfowitz has resigned his post, effective June 30.

An internal panel tasked with investigating the lucrative pay and promotion package Wolfowitz arranged in 2005 for girlfriend Shaha Riza found him guilty of breaking bank rules.

The committee also found that he tried to hide the salary and promotion package from top ethics and legal officials within the bank. The report added that there is a "crisis in the leadership" at the World Bank.

May 13, 2007
Why Wolfowitz should have been out on his ear

Now he is under pressure from European shareholders in the bank to resign: they are horrified that he is hanging on to power while the institution continues to lecture developing countries about the need for good corporate governance. Wolfowitz might have quit by now, but the US administration is trying to persuade him to stay to avoid losing face. He is, after all, an American appointment. But therein lies the problem. The bank's credibility would be better served if its president were selected by an independent body with power to hire and fire. If that were the case, he would have been shown the door weeks ago.