Law enforcement agencies are investigating Richard's role in the so-called Bernard Tapie affair. This is about a dubious court decision that allowed businessman Tapie to win a lawsuit against Credit Lyonnais bank and receive more than 400 million euros, allegedly as a reward for supporting Nicolas Sarkozy in the 2007 presidential elections. Richard himself denies that he participated in the abuses.

Tapie’s dispute with Credit Lyonnais dates back to the late 1990s. The businessman accused the bank of fraud in the sale of Adidas. In 2008, an arbitration court ruled in Tapie’s favor, ordering Credit Lyonnais to pay him €285 million plus interest. Richard was then the cabinet director of Christine Lagarde, then the economy minister and now the head of the IMF. The Socialists, who were in opposition, said the ruling was political, and was intended to reward Tapie for his support of Sarkozy.

Detained along with Richard is Jean-François Rocchi, the former head of the state-owned Consortium for Realisation (CDR), which controls the assets of Credit Lyonnais. A court spokesman explained that Richard was detained when he appeared in court to testify at another hearing in the case. He can be held for up to 24 hours, and then, if the court decides to continue investigating his involvement in the case, the period can be extended by another day.

Last week, French Industry Minister Arnaud Montbourg said that if the investigation into Richard's actions continued, he would have to step down as head of France Telecom (the company is 27% state-controlled). Richard responded that he fully expected support from President François Hollande and that the decision on his resignation would be made by France Telecom's board of directors. "The Tapie case has nothing to do with my activities at the company," Richard stressed.

France Telecom President Taken into Custody