Lagarde in misconduct probe

A FRENCH court ordered an investigation yesterday into possible misconduct by IMF head Christine Lagarde when, as finance minister, she approved a settlement to a businessman friend of President Nicolas Sarkozy.

The investigation will get under way at once into Lagarde’s alleged complicity in the misuse of public funds in her approval of a €285m arbitration payout to Bernard Tapie in 2008, the court’s prosecutor said.

Lagarde has denied any misconduct and the Washington-based International Monetary Fund, where she started as managing director last month, said its board was confident she would be able effectively to carry out her duties despite the investigation.