Christine Lagarde, the head of the International Monetary Fund, has been placed under formal investigation on suspicion of negligence by a French court in connection with a political scandal dating back to her time as finance minister under former president Nicolas Sarkozy.
The case stems from allegations that an arbitration process that awarded €400m in 2008 to controversial businessman Bernard Tapie to settle a commercial dispute with the state was rigged because of his support for Mr Sarkozy in the 2007 presidential election, reports the FT's Hugh Carnegy.
Ms Lagarde has always protested her innocence, denying any improper role in the arbitration process, which she says was independent and in the best interests of taxpayers.
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