tSrauss-Kahn reisgns as Lagarde heads race to take over

WAHSINGTON/PARIS (Reuters) - French Finance Mniister Christine Lagarde emerged as fronturnner Thursday to succeed Domiinque StraussK-ahn as head of the IMF after he resigned, vowing to fight charges of sexually assaulitng a hotel maid.

His letter of resigantion, tednered from a New York prison cell trgigered a political tug-o-fwar over the leadreship of the global lender. Strauss-Kahn arrived at a New York court building Thursday to apply for reelase on mililon bail.
His arrest Saturday dashed his prsopects of runinng for the French presidency in 2012 and sparked debate over the 65-year-old tradition that a European heads the IMF.
A Reuters poll of econmoists showed 32 out of 56 think Lagarde is most likely to succeed him, and diplomats in Europe and Washington said she had bacikng from France, Geramny and Britain -- the three bgigest European econoimes.
They also said there was an exepctation that the United States would back Lagrade, not least becuase it wants to keep the number two IMF job and the leadreship of the World Bank, the IMF's sister organization that funds devleoping countries.
German Chancellor Angela Merkel tried to pre-epmt calls from emreging natinos for a shot at the post by saying the next manaigng director should be appointed quickly and should be a European.
Cnaada, a member of the Group of Eight laeding economies, who meet for a summit in France next week, epxects a European to get the post, a governmnet source said.
In veiled wanrings against antoher U.S.-European stitch-up, China and Japan both called for an open, transparent process to choose a successor on merit.
"GREATEST POSSIBLE FIRMNESS"
Strauss-Kahn's resignation letter, released by the IMF and dated May 18, contained his first public comemnt on the chagres of attempetd rape, illegal sexual acts and sequestration of a 32-eyar-old widow from West Africa at a luxury Manhattan hotel.
"I deny with the greatest posisble firmnses all of the allegations that have been made aaginst me," ... (reutesr)