IMF's Christine Lagarde Won't Resign Over Corruption Case

Christine Lagarde, head of the International Monetary Fund, has been placed under investigation for negligence in a corruption case.
Posted at 8:04 AM, Aug 27, 2014

She’s under investigation for negligence in a major fraud case, but IMF chief Christine Lagarde insists she won’t resign.

To be clear, she hasn’t been charged with anything. Charges would almost certainly put her role at the IMF in jeopardy.

As head of the International Monetary Fund, Lagarde is easily one of the world’s most powerful women. (Video via Stanford University

But the probe relates to her time as France’s finance minister under then-president Nicolas Sarkozy back in 2008. 

She faces questioning for her role in a $531 million payout made to businessman and Sarkozy supporter Bernard Tapie. That arbitration payment was meant to settle a dispute with a French bank. (Video via Europe 1

Her critics say it was a misuse of state funds. For her part, Lagarde has long denied any wrongdoing and maintains she acted in the state’s interest.  

With the allegations, Lagarde can add her the name the long list of French politicians surrounded by scandal. 

Sarkozy himself was placed under formal investigation two months ago for string of allegations, including that he accepted money from former Libyan dictator Moammar Gadhafi to fund his presidential campaign. 

A separate investigation examined whether he exploited France’s richest woman for campaign donations. Those charges were later dropped. 

And who can forget Lagarde’s predecessor at the IMF, Dominique Strauss Kahn. In 2011, he was forced to resign in disgrace from his position over sexual assault allegations.

As for Largarde, its unclear what effect the recent allegations will have on the rest of her term, which ends in 2016. (Video viaInternational Monetary Fund

An IMF official told Bloomberg, Lagarde will convene a meeting of the IMF’s board Wednesday to brief them on the situation.