IMF chief Dominque Strauss-Kahn has been remanded in custody on charges of sexual assault. He was arrested on Saturday after being accused of trying to rape a hotel maid.

Mr Strauss-Kahn, a presidential candidate for France’s 2012 elections, denies the allegations. He has been refused bail after a New York judge ruled he posed a ‘flight risk’.

If found guilty, Mr Strauss-Kahn could face up to 20 years in prison. Just today, (16th) another woman has come forward accusing him of sexual assault. Tristane Banon accused Mr Strauss-Kahn of trying to rape her, after luring her to a Paris flat on the pretence of a job interview back in 2002. She has described him as a ‘rutting chimpanzee’.

Until his arrest, Strauss-Kahn was considered the favourite to become the socialist candidate for the French presidential race next year.

The allegations have also had a detrimental effect on the world’s financial markets. Investors are concerned about a potential Greek default. Analysts had believed that Mr Kahn would lead the IMF in helping to support and stand by Europe. This has now been thrown into question following the allegations and it weighed heavily on European markets in early trading today.