Christine Lagarde who replaced Dominique Strauss-Kahn at the IMF

[JDPriestly]

has legal troubles of her own.

Soon after her appointment to the ministerial job in 1997, Ms Lagarde became involved in a court battle pitting Bernard Tapie, a colourful businessman and former politician from Marseilles, against Crédit Lyonnais, a bank which had come under state protection following its near-bankruptcy. In 1993, Mr Tapie, in dire financial straits, sold Adidas, a German sportswear company, to a group of investors including Crédit Lyonnais for just over €300m ($426m). The following year the bank re-sold Adidas for €710m. Mr Tapie claimed he was cheated and sued.

(Ultimately, Lagarde sent the matter to an arbitrator (private judge) who ruled that France owed Mr. Tapie 285 million Euros.)

. . . . This week the Cour de Justice de la République, which was set up to investigate ministerial wrongdoing, said it would investigate Ms Lagarde for aiding and abetting a fraud and embezzling public funds in connection with the affair, charges which carry a possible prison sentence of 10 years and a fine of €150,000. Her lawyer stated that the court’s action is politically motivated.

The criminal investigation is particularly politically sensitive because Mr Tapie is a close political ally of Ms Lagarde's former boss, President Nicolas Sarkozy. Supporting Ms Lagarde’s candidacy for managing director of the IMF, Mr Sarkozy argued that the legal risks surrounding her were “easily managed”. The case could take several years to reach a judgment. The IMF said this week it was confident that Ms Lagarde would still be able to carry out her duties as managing director.

much more at

http://www.economist.com/blogs/newsbook/2011/08/france-and-imf

Whether or not this case has any merit, it would seem to me that it could hamper Ms. Lagarde's effectiveness at the IMF. It is emotionally very difficult to face such charges even if you believe strongly that you are innocent.

[Ruby the Liberal]

1. Yanno, JD, in this day and age, I would almost rule out anyone

who didn't have a skeleton in their closet.

[JDPriestly]

3. She could be subject to a lot of pressure

in this situation even if the charges are completely bogus.

This could impair her judgment seems to me.

I don't have anything against her, but what a huge pressure this would have to be on any person. Apparently, the charges could mean criminal penalties. It's kind of incredible -- two successive appointees to the post facing claims involving wrongdoing -- and both appointed by Sarkozy. Quite a coincidence.

[lovuian]

4. A Sarkosky minion is a bad minion

She is corrupted

[xchrom]

2. Recommend