IMF chief a 'honey trap' victim? Conspiracy theories swirl

The weekend arrest of Dominique Strauss-Kahn sent shockwaves through the financial world and upended French presidential politics, but it also quickly gave rise to theories about whether the International Monetary Fund chief had been set up by rivals.

Prior to his imprisonment at Riker's Island on charges of attempted rape, the globetrotting Strauss-Kahn wielded considerable power. As head of the monetary fund — which provides emergency loans to countries in severe distress and monitors global financial stability — Strauss-Kahn was a frequent guest of lawmakers and leaders of the banking industry.

And as a prominent member of France's Socialist party, he was widely considered to be one of the strongest potential challengers next year to President Nicolas Sarkozy.

The financial titan — who carries a reputation for womanizing — became an immediate talking point: For some, the story represented a sad fall from grace; others spoke of humiliation for France; but, for another group, it smacked of a set-up.

In a strange twist, Strauss-Kahn himself lit the fuse for theorists and supporters just two weeks ago. During an interview with French newspaper Liberation, the IMF chief predicted that his enemies could use his proclivity for promiscuity against him if he chose to run for president of France.

When asked what challenges he faced in a possible bid, Strauss-Kahn replied, "The money, women and my Jewishness."

"Yes, I love women ... so what? [...] For years we talk about giant pictures of orgies," he told Liberation. "But I've never seen anything out ... Let show them!"

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