French fraud police raid home of IMF chief

French police have searched the home of IMF chief Christine Lagarde today as part of a fraud investigation involving the country's former Prime Minister.

It is alleged that a supporter of Nicholas Sarkozy was illegally awarded €285m in a compensation payment in 2008.

Police are investigating claims that Christine Lagarde, who was French Finance Minister at the time, acted illegally in approving the payment, made after a dispute between the businessman Bernard Tapie and the bank Credit Lyonnais.

Ms Lagarde's lawyer said that today's police search of her home will help to "exonerate" her client of any wrongdoing.