Paris apartment of Lagarde searched in investigation

French authorities searched the Paris apartment of IMF chief Christine Lagarde yesterday in an investigation into her award of a 2008 arbitration payment to a businessman supporter of former president Nicolas Sarkozy, her lawyer said.

Lagarde, who was Sarkozy’s finance minister at the time, has denied wrongdoing in ending a court battle with Bernard Tapie and to instead opt for arbitration. It resulted in a €285m sum being granted to the billionaire.

Although Ms Lagarde has never been accused of profiting personally from the controversial payment, the long-running Tapie affair is a distraction as the ex-lawyer, a major player on the international stage, seeks to restore stability to the global financial system.