It’s a Very Big Cloud

There is, naturally, massive coverage about the Wolfowitz scandal today. This pieces by the Financial Times, New York Times, Washington Post, Wall Street Journal, Bloomberg, Los Angeles Times, U.K. Guardian, and Associated Press, just to name some. Some highlights:

Most articles seem to be in agreement that negotiations are under way to find language that are acceptable to both sides regarding Wolfowitz’ resignation. But there are several sticking points. Wolfowitz is set on leaving with the Bank taking some blame for what has happened, which the Bank is reluctant to do, considering the evidence is overwhelmingly in their favor. But Wolfowitz’ attorneys are adamant that their client will not “resign under this cloud.”

According to the New York Times, one major hurdle yesterday was that the White House suggested that:

“if the bank board cleared him [Wolfowitz] of ethics charges, the administration would be willing to talk about his possible resignation down the road.”

So the White House wanted Wolfowitz not to have to resign immediately, but rather in a few months, which didn’t fly at all with the Board. Considering Wolfowitz’ being there has paralyzed the institution for months, how would this benefit the Bank? According to the same article, Board members found it “galling” that Wolfowitz requested the committee reject the conclusion of the Ad Hoc Committee report, which was very damaging to Wolfowitz’ case.

The Washington Post article states that some on the Board were worried that Wolfowitz might renege on a deal:

Some board members feared that Wolfowitz might accept a statement exonerating him, then stay in the job, the White House aide said.

There is obviously not a lot of trust between the two parties. And why should there be? Wolfowitz and his crew have been caught misleading the Board and staff repeatedly. Also, the article seconded how distraught the Board was at the Bush administration proposal:

The staff were absolutely horrified by what seemed to be the Bush administration's disdain for a clear-cut case of corruption at the bank," an official said.

Bloomberg reported that according to foreign online trading markets, there is now a 92 percent chance that Wolfowitz will resign by June.

The Wall Street Journal kept an eye on the next steps of the Bank:

“…a looming succession fight threatens to prolong what has become a debilitating crisis for the poverty-fighting agency.”

From the same article:

Mr. Wolfowitz had argued that there is plenty of blame to go around. "I am not without fault,"…

Really? It seems like just a couple of weeks ago that Wolfowitz called the allegations against him “plainly bogus charges.” Oh wait – it was a couple of weeks ago.  

--Dylan Blaylock