IMF head Lagarde in court in fraud probe

Thursday, May 23rd, 2013 | Finance News

PARIS (AP) — International Monetary Fund chief Christine Lagarde has appeared at a special Paris court to face questioning over a controversial arbitrage deal that she oversaw as French finance minister.

The 2008 deal handed about 400 million euros to magnate Bernard Tapie to settle a dispute with state-owned bank Credit Lyonnais over the botched sale of Adidas in the 1990s.

Tapie was close to then-French President Nicolas Sarkozy, who was Lagarde's boss. Critics have said the deal was too generous to Tapie at the expense of the French state.

Lagarde left her Paris apartment Thursday morning and appeared at a special court that handles cases involving government ministers. She has denied wrongdoing.

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