In the spotlight France's Finance and Economy Minister Christine Lagarde, surrounded by the media, in Paris, Thursday. Lagarde has emerged as a top contender to replace Dominique Strauss-Kahn. (AP) n Ex-IMF chief granted bail under home detention n Debate on successor heats up NEW YORK: Ex-IMF chief Dominique Strauss Kahn was indicted on all charges presented to a New York grand jury in relation to an alleged sexual assault, Manhattan District Attorney Cyrus Vance said Thursday. Strauss-Kahn was granted bail, but was placed under home detention after posting $1 million bail. Judge Michael Obus agreed to release Strauss-Kahn from notorious Rikers Island jail after he also agreed to an insurance bond of $5 million, to surrender all travel documents and to submit to guarded home detention. He was to be monitored in a Manhattan apartment 24 hours a days, seven days a week by video surveillance equipment and have at least one armed guard with him at all times, a New York court heard. The hearing came just hours after Strauss-Kahn, 62, resigned from the IMF vowing to clear his name after being charged in the alleged attack on a 32-year-old chambermaid in a luxury New York hotel suite Saturday. The former head of the International Monetary Fund arrived in a Manhattan courtroom Thursday afternoon wearing a gray suit and an open blue shirt. He turned to give a quick smile to supporters in the gallery that included a daughter and his wife, the television journalist Anne Sinclair. A prosecutor began the hearing by announcing that a grand jury had found enough evidence for an indictment, a procedural step that elevates the seriousness of the charge. “The proof against him is substantial. It is continuing to grow every day as the investigation continues,” said Assistant District Attorney John “Artie” McConnell. Strauss-Kahn resigned as managing director of the International Monetary Fund late Wednesday, saying he needed to focus on clearing his name. The resignation came just hours before a hearing on his new request for bail. “I want to protect this institution which I have served with honor and devotion, and especially — especially — I want to devote all my strength, all my time, and all my energy to proving my innocence,” Strauss-Kahn said. “I deny with the greatest possible firmness all of the allegations that have been made against me.” In his statement Strauss-Kahn paid tribute to his American-born wife, journalist Anne Sinclair, who he said he loved more than anything, and said it was “with “infinite sadness that I feel compelled today to present... my resignation.” Scores of reporters lined up outside the courtroom door before the hearing, with still more journalists and cameras poised outside the building. State court system spokesman David Bookstaver said the media throng was one of the biggest at the courthouse since Mark David Chapman was arrested in the 1980 killing of John Lennon. The scandal has thrown the French political scene into disarray, as Strauss-Kahn had been seen as a strong contender to defeat President Nicolas Sarkozy in next year's elections. Strauss-Kahn's resignation comes at a critical time for the IMF, which is engaged in delicate negotiations to help overcome the eurozone debt crisis. Germany said Thursday it respected his decision to quit, with Chancellor Angela Merkel calling for a successor to be named soon. French Finance Minister Christine Lagarde is the front-runner to succeed him and become the first woman to head the IMF, but emerging economic powers have called for an end to Europe's virtual monopoly on the world lender's top post. Lagarde Thursday said Europe should unite behind a single candidate. “Any candidacy, whoever's it may be, should come from the Europeans, who unite, all together,” she told reporters in Paris, without directly addressing the question of her own possible candidacy. Emerging economy officials acknowledge that one problem would be their own difficulty in agreeing on a single candidate, in contrast to the Europeans' disciplined unity. A possible compromise figure could be former Turkish Economy Minister Kemal Dervis, 62, an economist with IMF experience, who is from an emerging economy that is a candidate for EU membership. Turkish Finance Minister Mehmet Simsek said the practice of Europe appointing the IMF head must change because “the centre of the world is moving from west to east”. Japan, China, Mexico, Brazil and South Africa have all suggested a new approach to selection. US Treasury Secretary Timothy Geithner has asked for an “open process,” without mentioning any specific candidates. “As agreed at G20, heads of international financial organizations and senior leaders should be chosen based on their ability through an open and transparent process, so I think a suitable person should be chosen through such a process,” Japanese Finance Minister Yoshihiko Noda said. John Lipsky, IMF's number two whose term expires in August, is acting managing director until the IMF executive board selects a successor to Strauss-Kahn. He said the Fund's executive board would meet later Thursday to launch the search for a successor to Strauss-Kahn.
