NY Times: ....Wolfowitz has said he will not stand down over a promotion he approved for his girlfriend despite increasing fears among bank member governments that the affair is hurting its image as an agency that is tough on corruption....
MSNBC has this:
World Bank president Paul Wolfowitz remained defiant on Sunday as finance and development ministers from around the world expressed "great concern" over the turmoil at the bank.
In an unprecedented statement, ministers representing all the bank's member governments, including the US, said "we have to ensure that the bank can effectively carry out its mandate and maintain its credibility and reputation as well as motivation of staff".
Staff are in open revolt over revelations that Mr Wolfowitz was personally involved in securing an attractive secondment deal for Shaha Riza, a bank official with whom he was romantically involved.....
Wolfowitz's behavior has damaged the reputation of the World Bank. I am not surprised he refuses to step down. He was one of the major architects of the invasion of Iraq and we know how that has progressed. He seems unwilling to take responsibility for his distracting scandalous conduct.