An investigation has begun into IMF managing director Dominique Strauss-Kahn’s alleged affair with a coworker. The New York Times reports Strauss-Kahn issued an apology to his staff and the woman in question, economist Piroska Nagy. The investigation comes at a time when the IMF’s worldwide obligations are increasing — including a bailout of Iceland. Strauss-Kahn’s legal team is working to resolve the issue by the end of the month.

In a statement issued by Strauss-Kahn, the former French finance minister said: “I have cooperated and am continuing to cooperate with outside counsel to the Fund concerning this matter . . . at no time did I abuse my position as the Fund’s managing director.” His wife, popular French TV personality Anne Sinclair, noted in her personal blog that she was already over her husband’s “one-night stand.”

The scandal may be undermining the IMF’s credibility, but doesn’t seem to have swayed borrowers from continuing business with the Fund.