Wolfowitz Working on Resignation Deal

World Bank President Paul Wolfowitz departs his home in Chevy Chase, Md., Wednesday, May 16, 2007. Wolfowitz, who is accused by a special bank panel of breaking conflict-of-interest rules, maintains that he acted in good faith in arranging a generous pay package for his girlfriend. He waged a vigorous fight to keep running the institution, defending himself before the board in an appearance late Tuesday. (AP Photo/J. Scott Applewhite) (J. Scott Applewhite - AP)

WASHINGTON -- Embattled World Bank President Paul Wolfowitz sought a face-saving agreement Wednesday that would allow him to resign under his own terms and escape some blame for the conflict of interest involving his girlfriend's generous pay deal.

The negotiations, disclosed by officials familiar with them, took place as the bank's board deliberated Wolfowitz's fate.

The board's meeting ended Wednesday without a resolution. Deliberations were to resume Thursday morning.

Wolfowitz wanted the bank to accept some responsibility for the conflicts cited by a special bank committee, according to officials who spoke on condition of anonymity because of the delicate state of negotiations at the bank.

It was not clear whether the bank's 24-member board would agree to Wolfowitz's terms.

Pressure on Wolfowitz to resign has grown since release of the panel's report Monday regarding his handling of the 2005 pay package of bank employee Shaha Riza.

Wolfowitz has maintained that he acted in good faith.

Messages left Wednesday with Wolfowitz's lawyer, Robert Bennett, were not immediately returned.

The bank panel said the board must consider whether Wolfowitz "will be able to provide the leadership" to ensure that the bank achieves its mission of fighting poverty around the world through loans and grants.

The 185-nation World Bank provides more than $20 billion a year for projects that include building dams and roads, bolstering education and fighting disease.

The bank, created in 1945 to rebuild Europe after World War II, has evolved into a major development organization. A centerpiece program provides interest-free loans to the poorest countries.

Before taking over the bank nearly two years ago, Wolfowitz was the No. 2 official at the Pentagon and played a lead role in mapping out the U.S.-led war in Iraq.