IMF chief under French probe for negligence

[PARIS] Christine Lagarde, the head of the International Monetary Fund (IMF), said on Wednesday that French prosecutors had placed her under formal investigation over a murky business affair that dates back to her time as finance minister under former president Nicolas Sarkozy.

Ms Lagarde said in a statement through her lawyer that she was being investigated for "simple negligence" by the Court of Justice of the Republic, the judicial body that is charged with investigating the conduct of high government officials.

Ms Lagarde, who has denied wrongdoing, said in the statement that the decision by a judicial committee to place her under formal investigation was "totally unfounded".