IMF Chief Christine Lagarde’s Home Searched by French Police

By Mark Deen & Sandrine Rastello - Mar 20, 2013 9:36 AM CT

French police today searched the home of Christine Lagarde, the managing director of the International Monetary Fund, the Paris prosecutor’s office said. 

International Monetary Fund Managing Director
Christine Lagarde listens to speakers during
a financial conference at the Ministry of Economy,
Finance and Industry in Paris. Photographer:
Balint Porneczi/Bloomberg

The Cour de Justice de la Republique, which investigates ministers’ actions in office, is looking into whether former French finance minister Lagarde erred in agreeing to an arbitration to end a dispute with businessman Bernard Tapie, a supporter of Former President Nicolas Sarkozy.

Tapie won a 385 million-euro arbitration award in damages to settle his dispute over his company’s sale of German sportswear brand Adidas AG. (ADS) Tapie claimed Credit Lyonnais mishandled the 1993 sale and pursued a claim against the formerly state-owned bank’s liquidator.

The court opened its investigation into whether there was “complicity in forgery” or “complicity in misuse of public funds” in the case in 2011, soon after Lagarde became head of the IMF.

“It would not be appropriate to comment on a case that has been and is currently before the French judiciary,” said Gerry Rice, the Director of the External Dept of the IMF. “Prior to its selection of the Managing Director, however, the IMF’s Executive Board discussed this issue and expressed its confidence that Madame Lagarde would be able to effectively carry out her duties.”

To contact the editor responsible for this story: Vidya Root at vroot@bloomberg.net