By Matthew Campbell

An inquiry into whether former government officials were complicit in the payment of huge damages to a tycoon could lead to a second French head of the International Monetary Fund being forced to step down.

Speculation is growing that Christine Lagarde, the former French finance minister who succeeded Dominique Strauss-Kahn at the helm of the IMF, may be placed under formal investigation after being summoned to answer questions by a judge in the next few days.

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