The selection of Wolfowitz in 2005 as president drew criticism from European officials, however France and Germany went along, hoping to heal the rifts left from their opposition to the Iraq War.
However in April, Germany's Chancellor Angela Merkel, as European Union chief, called for Wolfowitz to resign, saying she needed to reflect the majority view of European countries.
Many of Wolfowitz's early critics were dismayed that an official so closely tied to the Iraq War would lead the world's anti-poverty institution.
An international activist group staged a rally outside the World Bank on May 9, demanding the development institution let Wolfowitz go.
Unfurling a banner that read "World to Bank: Fire Wolfowitz," about two dozen activists from Avaaz.org chanted "Unless he quits, fire Wolfowitz!"
At a nearby park, World Bank employees on their lunch break watched the rally and voiced their feelings about the controversy.
Everybody is demoralized, we all want a swift resolution," said Mark, a World Bank employee who refused to give his last name.
"He's been standing on this pillar about anti-corruption and governance and it's kind of hypocritical," said another employee.
Some employees pinned blue ribbons to their briefcases and purses; the ribbons were given to them by their staff association to signify that "good governance" was still a key principle at the bank.
Kirit Radia of ABC News contributed to this story.