Wolfowitz Watch

Wolfowitz defended himself before the World Bank's Board of Directors yesterday:

“The goal of this smear campaign, I believe, is to create a self-fulfilling prophecy that I am an ineffective leader and must step down for that reason alone, even if the ethics charges are unwarranted,” he said. “I, for one, will not give in to such tactics. And I will not resign in the face of a plainly bogus charge of conflict of interest.”

The NYT seems to think that a deal is likely:

Mr. Wolfowitz’s defiant response left unclear what would happen next, but many at the bank saw it as a prelude to his eventual departure if negotiations could lead to the board’s endorsement of his claim that he had acted in good faith, not favoritism, in arranging for a pay increase for Shaha Ali Riza, his companion, in 2005. She was, at the time, being transferred to the State Department, but continued to receive her salary from the bank.