French authorities search apartment of IMF chief Christine Lagarde

[formercia]

2. Some background:

http://www.france24.com/en/20110805-french-inquiry-lagarde-wont-affect-job-imf-tapie-affair-sarkozy-strauss-kahn

Latest update: 05/08/2011

Criminal probe 'won’t affect' Lagarde's job at IMF
An inquiry into recently appointed IMF chief Christine Lagarde's actions as French finance minister won't jeopardise her position, lawyers say. The investigation, announced Thursday, will look into allegations of abuse of power.
Christine Lagarde is to be investigated in France over her involvement in a controversial legal wrangle between a top businessman and a state-owned bank. The decision to probe the former minister, made Thursday by a special court, comes after years of speculation and Socialist efforts to see her investigated.
Lagarde is accused of unfairly intervening in a long-running legal battle between media mogul Bernard Tapie and then state-owned bank Crédit Lyonnais, in 2008. After Lagarde – then finance minister – ordered that the case be settled out of court, Tapie won a settlement of €285 million euros. Despite objections from advisors, Lagarde then chose not to oppose the decision. Suspicions were amplified due to Tapie’s links with President Nicolas Sarkozy, who had taken office a few months earlier.
 
The Court of Justice of the Republic (CJR) will now investigate Lagarde for “abuse of authority”. If charged, she will face up to 10 years in prison and a fine of up to €150,000.