US backs Lagarde for IMF top job

The United States formally offered its backing today for French Finance Minister Christine Lagarde to take over the top job at the International Monetary Fund, ensuring a win for her over Mexico's Central Bank Governor Agustin Carstens.

The IMF's 24-strong board meets today to go through the formalities of picking a successor to former Managing Director Dominique Strauss-Kahn, who resigned in May to defend himself against charges of sexual assault against a New York hotel maid.

But the 55-year-old Lagarde was set to continue the tradition of having a European head the global lender while also becoming the first woman to lead the IMF.

US Treasury Secretary Timothy Geithner nodded to emerging markets' unhappiness at the tradition – which has a European head the IMF and an American lead its sister institution, the World Bank – by saying he was pleased that Lagarde had received broad support including from emerging countries.

"Minister Lagarde's exceptional talent and broad experience will provide invaluable leadership for this indispensable institution at a critical time for the global economy," Geithner said in a statement.

The United States, which holds the most voting power at the IMF, had refused until the final stage of the process to say who it was supporting, although it was widely assumed it would swing its weight behind Lagarde. As late as Monday night, Geithner told reporters he had "no interest in announcing our position to you."

In the end, the backing that Carstens garnered from Latin America, Canada and Australia was too thin to break Europe's 64-year hold on the IMF post.

IMF board directors, who represent the fund's 187 member countries, want to try to reach a consensus decision on a successor that would let them avoid a formal vote.The race has been one of the most hotly contested succession battles in IMF history.