Wolfowitz broke bank rules, says panel report

World Bank president Paul Wolfowitz broke the rules in arranging a huge compensation package for his girlfriend, which caused a "crisis in the leadership" at the institution, according to a report released today by a special panel.

The bank panel recommended that the full 24-member board determine whether Wolfowitz "will be able to provide the leadership" to ensure that the bank achieved its mission of fighting poverty around the world.

The board will ultimately decide Wolfowitz's fate.

Members have discussed a range of disciplinary options. They could sack Wolfowitz, ask him to resign, report a lack of confidence in his leadership or reprimand him.

Board members have been leaning toward an expression of no confidence or other tough language that would make it difficult, if not impossible, for Wolfowitz to stay on.

Wolfowitz is due to appear before the board today in proceedings that are not public.

A decision on his fate could come as early as today or tomorrow.