Wednesday, May 22, 2013
Lagarde To Be Placed Under Investigation
The head of the IMF may have to receive combat pay in the future. It's a dangerous occupation. Christine Lagarde's predecessor ended up in jail (briefly), and now Le Monde reports that Mme Lagarde herself will soon be placed under official investigation in connection with the Tapie Affair. You may recall that M. Tapie was the beneficiary of a sweetheart deal in settlement of a lawsuit, a deal on which Mme Lagarde was required to sign off in her previous position as French minister of finance. The deal was probably not her idea, nor even to her liking, but would she be IMF chief today if she hadn't signed it? Probably not, given that it was backed by then president Nicolas Sarkozy, whose support was instrumental in getting Lagarde appointed to the IMF. You do what you have to do, but sometimes it comes back to haunt you. How good the evidence of wrongdoing against Lagarde is remains to be seen, however. It may be a long road to a conviction, and the investigation hasn't even begun, so it would be foolish to lay odds.