As DSK's Star Is Rising, Is Lagarde's About To Set? French Court To Decide Whether To Open Against Brand New IMF Head

Tyler Durden's picture

The IMF soap opera just entered the twilight zone. Following the release of facts about DSK's accuser just two days after the swearing in of his replacement, Christine Lagarde, that could discredit her story and absolve the former IMF head of all wrongdoing, the current one may be about to experience amajor legal humiliation of her own. According to Reuters, a French court will decide on Friday whether to launch a legal inquiry into the role of IMF chief Christine Lagarde in a 2008 arbitration payout, a move that could cloud her debut at the international lender. To be sure this is the second time in the past two months that Lagarde's legal troubles have followed her: back in May we noted that the very same legal troubles could potentially delay her ascent to the head of the IMF. However, the French tribunal did not move fast enough, and thus Lagarde was elected without that major legal blemish being removed from her record. Thus it would be supremely ironic if tomorrow the Court Justice of the Republic were to pronounce that there just may be a case against Lagarde for abuse of authority. Coupled with DSK's probable imminent absolution of wrongdoing, in keeping with the Onionesque nature of reality, it would not surprise us if a year from now the IMF will have done a big switcheroo, and undone the whole thing, whereby DSK is back as head of the IMF.

The Court of Justice of the Republic, a tribunal qualified to judge ministers, has been examining whether or not there are grounds to suspect an abuse of authority by Lagarde. Legal sources say it is likely to opt to proceed with a formal probe when it announces its decision during the morning.

Lagarde, French finance minister until she took up her IMF post this week, has denied any misconduct in her approval of a 285 million-euro payment to a businessman friend of President Nicolas Sarkozy to settle a dispute with a state-owned bank.

There is no evidence she gained personally from the affair, but a legal probe would be embarrassing as the International Monetary Fund tries to turn a new page following the resignation of Dominique Strauss-Kahn as managing director after he was charged in New York with assaulting a hotel maid.

France's cumbersome justice system means a probe could run on for years, hanging over Lagarde as she tries to make her mark at the IMF and win over critics, particularly emerging nations angry at Europe's grip on the Fund's top job.

It gets even more complicated:

On the other hand, an inquiry could take months to actually get off the ground as it cannot start until a replacement is found for Jean-Louis Nadal, the public prosecutor who recommended the inquiry but then retired at the end of June.

Nadal, the public prosecutor of France's highest court until his retirement this month, recommended earlier this year that the Court of Justice open an inquiry into Lagarde's role in the Tapie payout.

His recommendation came at the request of lawmakers from the opposition Socialist Party who accuse Lagarde of abuse of authority in the affair.

The court was initially due to make its decision in early June, but judges asked for more time to weigh the evidence.

...And even more complicated:

If an inquiry is opened, a panel of judges at the
court would need to wait for a full report on the case which would be
put together by whoever replaces Nadal. The procedure for appointing his
successor cannot start until the autumn.

The person at the heart of the potential legal fiasco is French renaissance man, Bernard Tapie.

A former left-wing government minister who switched sides to support Sarkozy's 2007 presidential campaign, Tapie was paid to settle a long-running dispute with former state-owned bank Credit Lyonnais. He had accused the bank of defrauding him during a 1993 sale of his stake in sports giant Adidas.

Lagarde agreed to drop the judicial proceedings and submit the case to a private arbitration panel, overruling some in her ministry who argued that it should remain in court.

Her accusers say she ignored recommendations to check if the arbitration was legal and appeal against the size of the award.

Lagarde's defense, naturally, is that all allegations against her are politically motivated. Well, we for one can't wait to hear what DSK has to say about not only allegations against him, but, should the case against him collapse, the whole framing "thing" that would have likely sent him behind bars for years.


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Piranhanoia's picture

The 'ratfuckers' of the nixonian dynasty are revered as saints. There is no fixing this kind of fix.

MGHJFHD's picture

Hello could I use some of the content from this post if I link back to you?


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GlassHammer's picture

Just find an IMF candidate that doesn't exist in a cloud of legal troubles  and questionable financial activities. 

Should be easy...


Cognitive Dissonance's picture

This is a Travashamockery! Or something along those lines.

Just another day in paradise.

GlassHammer's picture


If only I had a better way to mock this IMF shuffle.

Like a really good simile

Seize Mars's picture

This is a Travashamockery! Or something along those lines.

Just another day in paradise.


Cognitive Dissonance's picture

I love Sniglets and other forms of word play.

Sniglets: "Any word that doesn't appear in the dictionary, but should."

fredquimby's picture

My 4 yr old godson is Swiss/English and mixed fix and flicken (german for mend) when he asked me to "flix" his broken hockey stick the other day :)

cougar_w's picture

A year from now?

He could be back at work in an "advisory capacity" a la Putin in as little as a week. 

Yes_Questions's picture

as the roux stirs...

slewie the pi-rat's picture

lagarde was vetted and elected by banksters.  she ain't goin nowhere fast. 

Yes_Questions's picture

If the case in NY falls totally apart, as it appears and the case brought by Tristane Banon does as well, this could be one hell of a turning if the French public sees this as all as politically motivated. 


destiny's picture

Tristane Banon is a distant parent of DSK....the french poodles are just that, poodles

JohnG's picture

This entire affair smells like a distraction tactic.

What is the IMF hiding?


spanish inquisition's picture

It is hiding incompetence covered by a cloud of stupidity wrapped in a farce.

slewie the pi-rat's picture

the sense i had of it all was around the dynamics in greece.

the imf was part of the "troika" and their guys & gals went into greece to "examine" the situ.  now, with hindsight, i think we can see that the banksters were calling the shots on the greek deal/parliament package and the fancy-dan financing to "encourage" participation, in a deal that was good for the banksters b/c it got the situ past the ratings agencies, and contained the contagion.  it was a lousy deal for greece and a sweet deal for the bondholders, which it had to be.  but it was designed to keep the country from default, and, tho expensive, seemed to solve a few problems (they won't do certain things, again), and give some political success, thru greece to this "new" (world order) type of process.

so, it looked like europe was all screwed up, and greece, and the imf, too.  worst of all!  perceived as a nexus of buffoonery.  nice property list, tho.  1) push button  2) give $ to greece  3) how abt 1.5 miles of coastline?

What is the IMF hiding? 

maybe that they are in control, and perhaps circumstances just, er,  conspired, sort of, so that very few people, unhh,...noticed.   when dsk was arrested, our american guy took over as "interim/acting" executive.  so, it might be more accurate to say that the international banking cabal/cartel was operating thru the corporate, banking, and international structure known as the imf.  also the ECBank and the EU, too.  certainly, +influence+ through these constructs, also.

now, we seem to have the debt-funding criteria changing w/ portugal.  i read that stuff earlier from the EU and my thought was:  this sounds like the FED!?!

has the corporate kleptocracy closed ranks?  are the europeans about to jettison all ballast, baggage, common sense and rules?  like the FED & the US? 

the way the monetary valuations are set up, isn't it their best play?  and, can they afford not to?  

general patton:  what the hell is going on here?

web bot's picture

And you wonder why the peasantry in the 1780s overthrew their masters? It's not too hard to see why based on what is going on today.


buzzsaw99's picture

DSK could star in trannie porn if the french-president thing doesn't work out.

Zero Govt's picture

"The IMF soap opera just entered the twilight zone."

It was born in the Twilight Zone (of international cronism) and has never exited

..all we need now is for the Pink Panther to put Frog President Nicolas Sarkozys webbed fingerprints on the DSK stitch-up job in NY and Christmas has come early for all lovers of creepy serials

..hope The Big-Fat-Empty-Lefty-Gob-for-Rent Jon Stewart Show is keeping abreast of this, as DSK's star rises the Star of Davids favourite caustic clown falls face first into a giant custard pie (socialists: 100% guaranteed to be a complete fuking train-wreck) 


Gordon Freeman's picture

Yeah, but, but, but...she stood before us, as a woman!

Atomizer's picture

I knew she had a dick by her voice tone given on wednesday's IMF press conference. Let the sex scandal ensue.. LOL

Farmer Guy's picture

Why is there an Obama 2012 banner ad on 

the main zero hedge site?


downrodeo's picture

So that we may laugh at the foolish hand that keeps feeding the mouth that bites it...hahahahahaha

metastar's picture

May justice be done though the IMF falls.

TheJudge2012's picture

DSK: Concierge I'm feeling horny.

Concierge: Yes Mr. Strauss-Kahn. We'll send up the cleaning lady (who may have aids) to take care of that.

People really believe a finer hotel would use cleaning women to service their rich patrons? To suggest DSK was set up is to suggest the globalistas wanted to shoot themselves in the foot when they want to appear respectable in order to sell the public on their control of the world monetary system.

HungrySeagull's picture

Sometimes the Shower cleaning staff will do a quickie for 20 dollars in between cleanings of the stalls for the next trucker. Happens all the time.

Cursive's picture

Can't make this shit up....

Coldfire's picture

Sometimes a cigar is a big brown dick.

insidious's picture

Look - they need to keep the great pyramid swindle going. Who better than a bunch of crooks to keep it pumped. They know the in's and out's, have friends in high places and can lie with a straight face. No surprise to anyone if they claim some of the spoils as their own and share amongst one another.

HungrySeagull's picture

What the fuck does the IMF have to do with the United States anyway? The UN also. Throw them all out of this Nation and tell them to effing find thier own pad.


Until about 8 years ago IMF did not exist for us, never cared or heard about them.

I'm sick of it already. Toss the bums out.

GFORCE's picture

Your masters created the un and imf so they're here to stay.