IMF managing director Christine Lagarde lost a July appeal to avoid trial in France on charges relating to her time as finance minister in 2008 (see Update 77). The case concerns Lagarde’s role in a legal award of €400 million ($450 million) to a French businessman. Reuters reported in September that the trial for “negligence” which led to public funds being “misused” will commence in December, adding that Lagarde’s lawyer confirmed that “she will attend”. Lagarde has always denied any wrongdoing. If found guilty Lagarde could face a prison sentence or fine. IMF director of communications Gerry Rice issued a July statement that the IMF board “continues to express its confidence in the managing director’s ability to effectively carry out her duties”. Lagarde is the third consecutive IMF managing director to face trial.
In prioritising capital market expansion, the needs of the lowest income groups are not being effectively addressed through World Bank interventions.
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