It is confirmed that Dominique Strauss-Kahn has announced his resignation from as the International Monetary Fund (IMF) Chariman. He is amidst sexual assault charges and a growing pressure of doubt in his ability to run the organization. A resignation letter from Strauss-Kahn to the IMF board described his denial to the allegations and hopes of protecting the institution.

According to the letter, Strauss-Kahn felt compelled to resign saying it with infinite sadness. He stands firmly to prove his innocence and that he wasn't strong-armed into the decision. Saying that he served the institution with honor and devotion, his wish is to devote time, strength, and energy to prove his innocence.

I think at this time first of my wife - whom I love more than anything - of my children, of my family, of my friends, said Strauss-Kahn in an IMF released statement. I deny with the greatest possible firmness all of the allegations that have been made against me.

The IMF has been receiving pressure from European Union officials to find a successor, especially one within their own ranks. The discussions has been heated on whether the position be filled traditionally in Europe or with other developing nations. Europe states that an intimate knowledge of Europe's debt is a main criteria, not based on any tradition.

From a European point of view, it is essential that the appointment will be merit-based, where competence and economic and political experience play the key role...And in this current juncture it is a merit if the person has quite solid knowledge of the European economy and decision making, said European Commissioner for Monetary and Economic Affairs, Olli Rehn.

The U.S. government has a substantial role in deciding Strauss-Kahn's successor. The U.S. Treasury chief Geithner expressed that they would like to see an open process towards a prompt succession.

Currently, talks have been swirling around France's Finance Minister Christine Lagarde as a leading candidate for the position.

France's Finance Minister Christine Lagarde,55, has in recent days been touted in many European capitals as a good choice. A sharp, articulate negotiator, she has a strong international reputation and impeccable English after living in the United States for many years. Largarde has been a veteran in terms of handling issues with the European debt.

Lagarde has the negotiating skills and an understanding of Europe's sovereign debt crisis needed for the post, said Charles Grant, an analyst at the Centre for European Reform.

European union IMF International Monetary Fund United nations