WASHINGTON, Oct. 25 (Xinhua) -- The Executive Board of the International Monetary Fund (IMF) said on Saturday there was no harassment, favoritism or any other abuse of authority by Managing Director Dominique Strauss-Kahn.

    An inquiry was launched into Strauss-Kahn's alleged improper conduct in his affair with his woman subordinate Piroska Nagy while both worked at the IMF.

International Monetary Fund Managing Director Dominique Strauss-Kahn speaks at the closing session of the annual International Monetary Fund-World Bank meeting in Washington, in this Oct. 13, 2008 file photo.

    Strauss-Kahn has admitted he had an affair with the woman economist, but he denied he had harassed her or abuse of power.

    Despite clearing him of abuse of power, a statement issued by the board noted that the incident "was regrettable and reflected a serious error of judgment on the part of the managing director."