dominque strauss-kahn looked exhausted. his lawyer's attempts to win bail failed. for the time being, he won't be freed. the drama began on saturday at j.f.k. international airport. strauss-kahn was in an air france plane awaiting takeoff to paris. police boarded the plane and arrested him. the accusations leveled against him emerged quickly. a maid at this hotel says he sexually assaulted her but it's far from clear exactly what happened or didn't happen. some french media doubt the version of events put forward by the new york police. they say strauss-kahn has an alibi, that he was dining with his daughter when the assault is alleged to have taken place. but this is not the first time strauss-kahn's name has been sullied by he had an affair wita junior colleague at the i.m.f. the fund said he had made a serious error of judgment, even if the relationship was consensual and the woman gained no preferential treatment. but the affair tarnished the image of the i.m.f.'s crisis manager and the man whom many believed would be the great hope of the socialist party back h

dominque strauss-kahn was arraigned in new york today on charges of sexual assault and attempted rape. tom, these allegations add uncertainty to the debt crisis in europe. >> tom: susie, strauss-kahn is widely respected as an authority on europe's economic issues. his legal trouble comes at a critical time, as greece and other troubled countries are negotiating this week for financial help. >> susie: today eurozone nations approved a big bailout package for portugal-- $111 billion. what do all these developments mean for american investors? suzanne pratt reports. >> reporter: i.m.f. director dominique strauss-kahn was supposed to be in brussels today tackling europe's newest money troubles. instead he sits in a manhattan jail, not far from the new york stock exchange. as if the eurozone didn't have enough problems, the arrest of strauss-kahn is the latest dark cloud for the region. veteran big board broker ted weisberg says it's also a stark reminder that u.s. investors should keep a watchful eye on europe. >> the world grows smaller economically every day, and i think what happens in

one more night in jail for dominque strauss-kahn. the former chief of the international monetary fund will be released tomorrow on $1 million bail. susie, a federal judge granted bail late today, pending strauss-kahn's trial on charges he sexually assaulted a hotel maid in new york city. >> susie: tom, those charges forced strauss-kahn to resign as the i.m.f.'s chief, and also set in motion a high-profile search for his replacement. it's a coveted job-- the i.m.f. acts like the top central banker for the global financial system. >> tom: and it's also a pressure cooker job, given the state of the world's finances. acting chief john lipsky today called the global economy shaky. speaking to world bankers, lipsky said the global recovery is "fragile and beset by uncertainties." >> susie: joining us now to talk more about all this-- scott macdonald, head of economic research at aladdin capital. hi, scott. >> hi, susie, how are you doing? >> susie: i'm good, thank you. let's start out by talking about who is going to get the job. and the tw

. >> now since being arrested, dominque strauss-kahn has resigned. has he reached out to you? >> no. >> they seem to have a predecessor. >> if you step back, i want to let you know what's driving our approach, the institutions. these were formed in the wake of second world war. and they were set up in a really different era. they were set up with a balance of power government structure that reflected the balance of power at the time. the world has changed dramatically since that time. we have been leading, working with, not just emerging economies, but even with europe too to make sure we change the government structure to better reflect the reality. that's important. we made a lot of progress in doing that. we have stuff to do that. part of that is making sure that people have a contestable appointment process for the institutions. people want to be confident that the judges are going to be made on the merit and talent of the individuals. you have about -- i think you are about to have two people now, kristen lagarde, and augustine cast tens, two very credible people said the

dominque strauss-kahn and his present circumstances in the house he's living are particularly shocking given the circumstances? >> personally, i have refused to adopt a position on this particular issue. you know perfectly well that whatever is said on the subject, i will be criticized. you know this very well. i'm not criticizing you for having put the question to me, but i believe all of this is sufficiently miserable for the whole of the political world to remain dignified in what they say and the stand they adopt because one has mixed feelings, mixed feelings, quite contradictory, that belong to each person's personal sensibility. therefore, i do not feel that as head of state i need to or should adopt a position. there's american justice. to say that this deeply harms the image of france, i was not aware of the fact that mr. strauss-kahn was representing france. he was representing the i.m.f. when you say -- basically what you're saying is that this has harmed the image of the i.m.f., the deputy director of the i.m.f., deputy president was there, we talked about it and we want to