Von Fersen divided his time between Paris, Versailles, and his new regiment in Valenciennes. During this time, the Diamond Necklace Affair took place, and only months later the Cardinal de Rohan was arrested, bringing the affair to public knowledge. Von Fersen wrote to his father in September that everyone believed the Queen (Marie-Antoinette) had fooled the King. In August 1786, Vicomte de Calonne finally apprised Louis XVI of the desperate state of the French finances, and by the very end of the year it was announced formally that there would be a convening of an Assembly of Notables to discuss future measures.