Christine Lagarde, now the International Monetary Fund's (IMF) reigning leader, found herself under scrutiny by a French court in August 2011. The court was examining Lagarde's role in a long-standing dispute between business tycoon Bernard Tapie and Credit Lyonnais.
Accusations of favoritism towards Tapie by Lagarde, who had previously served as France's Finance Minister, have been levied against her. Lagarde has consistently denied any wrongdoing.
Prior to joining the IMF, Lagarde served as France's Finance Minister for four years.
As the investigation rages on, the IMF spokesperson, Gerry Rice, remarked, "It would be inappropriate to comment on cases under investigation in France and currently pending."
The executive board of the IMF, before appointing Lagarde as managing director, had robust discussions about her abilities to manage her responsibilities effectively, expressing confidence in her capabilities.
In June 2011, Lagarde was appointed as the Managing Director of the IMF, replacing Dominique Strauss-Kahn. Strauss-Kahn resigned after being accused of sexually assaulting a hotel chambermaid in his New York suite. The charges against him were eventually dropped, with U.S. authorities dropping their charges and France dropping their charges at a later point.
The ongoing probe into Lagarde's role in a business spat between Tapie and Credit Lyonnais did not deter her from her position at the IMF. The 24-member executive board of the IMF was convinced of her ability to execute her duties effectively, having discussed the matter prior to her appointment as Managing Director.
Despite the legal issues that she faced, the IMF did not take any action against Lagarde, instead demonstrating confidence in her leadership abilities.
It's important to note that, while Lagarde served as the IMF's managing director, she was found guilty of favoritism towards Tapie by a French court. Despite this conviction, she evaded punishment and continued to lead the IMF with widespread respect from the global community. The executive board of the IMF, recognizing her exceptional leadership, did not push for her removal from her position.
