International Monetary Fund chief under investigation

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

Lagarde has said any allegations of wrongdoing are unfounded, according to the New York Times.

Placing her under formal investigation signals that prosecutors believe they have evidence of wrongdoing, but the charge of negligence hardly suggests high crimes. Negligence by a government official that makes possible the misappropriation or embezzlement of public funds is punishable with a maximum fine of 15,000 euros, or $19,800, and up to one year in prison.

Read more from the New York Times.