From The Washington Post
By Peter S. Goodman and Karen DeYoung

The World Bank’s executive board is negotiating the resignation of embattled President Paul D. Wolfowitz, senior bank officials said this afternoon.

The sources said that under the terms being discussed, Wolfowitz would step down, ending the ethics controversy that has consumed the bank for weeks, while the board would credit him for some achievements as president of the global poverty-fighting institution, including a sharpened focus on aiding Africa and stemming corruption.

A senior bank official who spoke on condition of anonymity, citing the sensitivity of the talks, said the Bush administration was helping broker the terms and was eager to see the matter resolved swiftly.

Under the terms of Wolfowitz’s contract, signed two years ago, he would receive a full year’s salary — more than $375,000 — if he steps down or is fired by the board.

Earlier, the board dismissed a proposal floated by the Bush administration aimed at finding Wolfowitz a face-saving way out, according to senior officials at the bank.

Read more Resignation