IMF's Lagarde vows to fight negligence charge
The International Monetary Fund chief pledged to fight ''allegation by allegation'' charges of negligence when she went on trial in Paris over her role in a huge payout by the French state to businessman Bernard Tapie in 2008. AsSonia Legg reports, Christine Lagarde was France's finance minister when she approved an out-of-court settlement with Bernard Tapie to end a long-running dispute between the magnate and the French state.
TRANSCRIPT +
She's standing trial over her role in a 400 million euro state payment to French businessman Bernard Tapie. IMF chief Christine Lagarde was France's finance minister at the time under President Nicolas Sarkozy. She approved an out-of-court settlement to end a dispute between the state and Tapie. But denies negligence leading to misuse of public funds. (SOUNDBITE) (French) LAWYER FOR DIRECTOR GENERAL OF THE IMF CHRISTINE LAGARDE, PATRICK MAISONNEUVE, SAYING: "Christine Lagarde is being prosecuted for negligence which allowed the embezzlement of public money but this embezzlement -- yet to be proven -- is the subject of another legal case. And in that case, the people under investigation deny the existence of any embezzlement. So how can the court rule within a few days." Lagarde could face up to a year in jail and a fine of 15,000 euros. And some fear for the IMF's reputation if she's convicted. (SOUNDBITE ) (English) IG SENIOR ANALYST, CHRIS BEAUCHAMP, SAYING: "It makes their economic pronouncements a little less credible in some ways - certainly people may be less inclined to listen to them quite as close as they used to." Lagarde's predecessor Dominique Strauss-Kahn quit amid a sex scandal. A guilty verdict could plunge the IMF into another leadership crisis.