A tale of two deaths, twelve investigations and missing millions
Two suicides, both of which could conceivably be murder. As much as $1.2 billion in unsecured loans. The failure of Italy's huge Banco Ambrosiano, which has left more than 200 international financial institutions holding the bag for millions in loans. A scandal that has threatened the stability of the entire international banking system and has begun to bring about subtle changes in the way the world's major banks do business. A secret plot to undermine the government of Italy and to change the shape of politics in several Latin American countries.
Even if these were the only ingredients, the story would still be intriguing enough for a Robert Ludlum thriller. But an added element is making the scandal that has rocked the world of international finance one of the most compelling real-life mysteries of the century: the involvement of the Istituto per le Opere di Religione (I.O.R.), better known as the Vatican bank.
Founded in 1942 to invest and increase the funds given to the Holy See for religious works, the I.O.R. is much like any other international commercial bank. It accepts savings and checking accounts, transfers funds in and out of the Vatican and makes investments. There are, however, some interesting differences in the bank, which is tucked away in the medieval tower of Sixtus V. Depositors must be connected with the Vatican. The list of those eligible includes members of the Curia (the Pope has a personal account, No. 16/16), the 729 permanent residents of Vatican City, and a small group of clergymen and laymen who have regular business dealings with the Vatican. No others need apply. The bank's assets are thought to be modest by international standards. For that reason, the scandal is especially threatening to the I.O.R.: Italian authorities say the bank may be liable for much of the millions the Banco Ambrosiano Group owed to international banks.
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