Sources
Help build the largest human-edited directory on the web.
Submit a site - Become an editor
Wikipedia. Licensed under the GNU Free Documentation License.
Are you an expert in this subject? Join the discussion and share your knowledge at Wikipedia.org.
Vatican Bank
From Wikipedia, the free encyclopedia
 |
This article does not cite any references or sources. (May 2007) Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed. |
The Vatican Bank is a common name given to the Istituto per le Opere di Religione (IOR) or Institute for Religious Works, the central bank for the Roman Catholic Church located in Vatican City. It is run by a professional bank CEO who reports directly to a committee of cardinals, and ultimately to the Pope (or the Cardinal Camerlengo during an interregnum), and is the only papal financial institution not overseen by the Prefecture for the Economic Affairs of the Holy See.[1] The current President is Angelo Caloia. The Vatican Bank was involved in a major political and financial scandal in the 1980s, concerning the 1982 $3.5 billion collapse of Banco Ambrosiano, of which it was a major share-holder. The head of the Vatican Bank from 1971 to 1989, Paul Marcinkus, was indicted in 1982 in Italy as an accessory of the bankruptcy. The Bank Identifier Code of the Vatican Bank is IOPRVAVX.
Contents |
The Vatican Bank is a branch of the Roman Curia, the administrative structure of the Roman Catholic Church. It developed into a formal organization in the 19th century out of the informal system of Church finance known as Peter's Pence.
The Vatican Bank went through three periods of major change: post-1870 with the dissolution of the Papal States; in 1929 with the Lateran treaties establishing an independent Vatican City; and following the upheavals of World War II.
When the Lateran Treaty was written, one of its clauses[2] redefined the canon sin of usury, to not mean gains from money lending, but rather simply profiting "exorbitantly". This enabled the Vatican Bank to become a true bank, with all the profitability that it implies. Mussolini further gave the new Vatican Bank approximately $80 million to begin with.
The Vatican Bank is a successful and profitable bank. By the 1990s, the Bank had invested somewhere over US$10 billion in foreign companies. In 1968 Vatican authorities hired Michele Sindona as a financial advisor, despite Sindona's questionable past. It was Sindona who was chiefly responsible for the massive influx of money when he began laundering the Gambino crime family's heroin monies (taking a 50% cut) through a shell corporation "Mabusi". This laundering was accomplished with the help of another banker, Roberto Calvi, who managed the Banco Ambrosiano. Both Calvi and Sindona were members of the P2 Lodge.[3]
When Pope John Paul I became Pope in 1978 he was informed about the allegations of wrongdoing at the Vatican Bank, and instructed Jean-Marie Villot, Cardinal Secretary of State and head of the papal Curia, to investigate the matter thoroughly. Pope John Paul I died after only 33 days in office, leading to claims that he had been murdered as a result of discovering a scandal. Pope John Paul I is generally accepted to have died from natural causes, although some medical experts believe that he may have died from a pulmonary embolism or an adverse reaction to the medication that he was taking rather than from a heart attack as was stated in original press reports of his death.
According to the norms of the statutes that came into effect in 1990, the IOR, is directed by a supervisory council and by an oversight commission of cardinals.
The supervisory council is composed of:
- President: Angelo Caloia
- Vice-President: Virgil C. Dechant
- Theodor E. Pietzcker
- José Angel Sánchez Aslain
- Robert Studer
The oversight commission of cardinals is headed by the Cardinal Secretary of State Tarcisio Cardinal Bertone and is composed of the cardinals Jozef Tomko, Eduardo Martínez Somalo, Adam Cardinal Maida and Juan Sandoval Íñiguez.
The Vatican Bank was Banco Ambrosiano's main share-holder. Father Paul Marcinkus, head of the Vatican Bank from 1971 to 1989, was indicted in Italy in 1982 as an accessory in the $3.5 billion collapse of Banco Ambrosiano, one of the major post-war financial scandals. Banco Ambrosiano was accused of laundering drug money for the Sicilian Mafia, which used Propaganda Due (aka "P2"), a mobbed up Masonic lodge, as an intermediary. P2 and its Worshipful Master, Licio Gelli, were also involved in financing right wing terror groups during the 1970s. As for Fr. Marcinkus, he would never come to trial in Italy, where courts ruled that he possessed diplomatic immunity. He lived in retirement in Sun City, Arizona (US) until his death on February 21, 2006.
The Vatican Bank has denied having legal responsibility for the Ambrosiano's downfall but did acknowledge "moral involvement", and paid $241m (£169m) to creditors. As of 2006, investigations are continuing concerning the murder of Ambrosiano's chairman, Roberto Calvi, which, according to Ernest Backes, former #3 of Clearstream, may have been linked to the death of Gérard Soisson, who used to work for Clearstream, a "bank of banks" which practices financial clearing. According to recent wiretap information, however, Calvi's death was almost certainly decreed by the Cupola, the ruling council of the Sicilian Mafia, which had come to view Calvi as a liability since the bank's collapse.
Several books that appeared during the 1990s were highly critical of the Vatican Bank's historical relations with right-wing governments and especially in the collaborationist regime of the Independent State of Croatia. They engendered initial defensive hostility and controversy. The controversy centers on conclusions drawn from the documentation rather than the documents themselves.
According to a 1998 report issued by the US State Department, the Nazi Croatian treasury was illicitly transferred to the Vatican Bank and other banks after the end of World War II. For its part, the Vatican has repeatedly denied any Franciscan participation in Ustashi crimes or the disappearance of the Croatian Treasury, yet has refused to open its wartime records to substantiate its denial.
A 1946 memo from US Treasury agent Emerson Bigelow, declassified in 1997, quoted a "reliable source in Italy", who alerted his superior that Croatian officials had sent 350 million confiscated Swiss francs (CHF) to the Vatican Bank "for safekeeping". On the way some CHF150 million were apparently seized by British authorities at the border between Austria and Switzerland, which brought the secret transfer into the open. "There is no basis in reality to the report", said Vatican spokesman Joaquin Navarro-Valls, as reported in Time magazine [1].
Vatican Bank has been often accused of funding the Solidarity Polish trade-union as well as the Contras, managing US covert funds.[4]
Vatican Bank and Franciscan Order were accused of financing the ratlines and ODESSA and laundering concentration camp loot. A class action suit, Emil Alperin et al. v. Vatican Bank et al., was filed in the United States district court in San Francisco on November 15, 1999. The plaintiffs are concentration camp survivors of Serb, Jewish, and Ukrainian background and their relatives as well as organizations representing over 300,000 Holocaust victims. John Loftus, co-author of Unholy Trinity, serves as an expert witness in this case.
Another suit, Levy v. CIA, filed under the US Freedom of Information Act seeking release of US intelligence agency files regarding the alleged Vatican spymaster, Fr. Krunoslav Draganovic. New records on Draganovic were released as a result of that lawsuit in 2001.
The lawsuit was still pending in a United States Federal Court as of 2007.
The 1990 film The Godfather, Part III featured machinations in the Vatican Bank as a central element in one of its more conspiracy-oriented plotlines.
- John F. Pollard - Money and the Rise of the Modern Papacy: Financing the Vatican, 1850-1950 ISBN 0-521-81204-6
- Mark Aarons and John Loftus: "Unholy Trinity: How the Vatican's Nazi Networks Betrayed Western Intelligence to the Soviets". New York: St.Martin's Press, 1992. 372 pages. ISBN 0-312-07111-6
- Charles Raw - The Moneychangers: How the Vatican Bank Enabled Roberto Calvi to Steal 250 Million Dollars for the Heads of the P2 Masonic Lodge (Harvill Press, 1992) ISBN 0-00-217338-7
- Giancarlo Galli - Finanza bianca. La Chiesa, i soldi, il potere (Mondadori, 2004) ISBN 88-04-51262-8
- David A. Yallop - In God's Name: An Investigation into the Murder of Pope John Paul I"
- Mark Lombardi: Global Networks. Mark Lombardi, Robert Carleton Hobbs, Judith Richards; Independent Curators, 2003 (published for the travelling exhibition of his work, "Mark Lombardi Global Networks"). ISBN 0-916365-67-0
- Jonathan Levy, "The Vatican Bank, Chapter in Everything You Know is Wrong", (Disinformation Press, 2002, ISBN 1-56731-701-4
- ^ Pollard, 2005, p. 2.
- ^ Lateran Pacts of 1929
- ^ 'Mark Lombardi: Global Networks. Mark Lombardi, Robert Carleton Hobbs, Judith Richards; Independent Curators, 2003 (published for the travelling exhibition of his work, "Mark Lombardi Global Networks"). ISBN 0-916365-67-0
- ^ "Gelli arrest is another chapter in sordid Vatican bank scandal", American Atheists, September 16, 1998.
- Critical
- "Nazi-Era Victims Demand Army, CIA Release Documents on Vatican", CNS News, September 4, 2000.
- The Vatican Bank claims website
- The Vatican, Croatia and the Nazi Gold
- The Vatican Pipeline: U.S. intelligence document links $170 million in Nazi gold to the Vatican—report on declassified memo in Time Magazine, July 22, 1997
- Profile of Marcinkus in the Arizona Republic