The new head of the IMF, against whom this blog warned at the time of her appointment, is under investigation by the French courts for misconduct while French finance minister. It is alleged that she intervened in a dispute between Bernard Tapie and the bank Crédit Lyonnais when it was none of her business.
M. Tapie trousered €285m as a result of an arbitration decision which her opponents say she should not have ordered. M. Tapie was a supporter of President Sarkozy.
This is very serious and Mme. Lagarde ought to resign.
She won't, though.
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