IMF boss Lagarde to face French judge in Tapie investigation

City A.M. Reporter
IMF chief Christine Lagarde will be questioned by a French magistrate today over her role in a €285m (£242m) arbitration payment made to a supporter of former President Nicolas Sarkozy.

Lagarde risks being placed under formal investigation at the hearing for her 2007 decision as Sarkozy’s finance minister to use arbitration to settle a long-running court battle between the state and high-profile businessman Bernard Tapie.

Under French law, that step would mean there exists “serious or consistent evidence” pointing to probable implication of a suspect in a crime. It is one step closer to trial but a number of such investigations have been dropped without any trial.

Such a move could prove uncomfortable for the International Monetary Fund, whose former head, Frenchman Dominique Strauss-Kahn, quit in 2011 over a sex assault scandal, and for a woman who has been voted the most influential in France by Slate magazine.