The Vatican Financial Empire- A Hidden History | 2024 Documentary

Summary

The script explores the financial history of the Vatican, from the Renaissance to modern times, detailing scandals involving Roberto Calvi, Michele Sindona, and Archbishop Paul Marcinkus. It covers the Vatican's involvement in bank fraud, money laundering, and its struggle to maintain financial integrity amidst global crises and internal corruption.

Takeaways

• 🏦 The Banco Ambrosiano scandal of 1982 involved Italian banker Roberto Calvi, who was connected to the Vatican and later found dead under suspicious circumstances in London.
• 🕍 The Vatican, as a significant religious and financial institution, has a long history of influence and involvement in various financial activities, including real estate and investments.
• 💸 The Church has occasionally engaged in morally ambiguous financial practices, such as selling indulgences during the Renaissance, which contributed to the Reformation led by Martin Luther.
• 📉 The Vatican faced severe financial crises, including after the French Revolution and the rise of Napoleon, which led to Pope Pius VI's death in captivity.
• 🤝 In the 19th century, the Vatican sought financial help from the Rothschild family, establishing an unlikely alliance that helped the Church navigate through financial distress.
• 🏦 The establishment of the Vatican Bank, or Istituto per le Opere di Religione (IOR), in 1942, allowed the Church to operate in secrecy without public disclosure of its financial activities.
• 💼 The Vatican Bank has been associated with controversial figures like Michele Sindona and Roberto Calvi, who were involved in financial scandals and criminal activities.
• 📉 The collapse of Banco Ambrosiano and the subsequent scandals led to a significant financial and reputational crisis for the Vatican, affecting donations and the Church's operations.
• 🕊️ Pope Francis, elected in 2013, has made strides towards transparency and ethical finance, publishing annual financial reports for the Vatican Bank and addressing the clergy sexual abuse crisis.
• 🌍 Despite past challenges and scandals, the Catholic Church continues to grow globally, with an increasing number of followers, particularly in Africa and Asia.

Q & A

Who was Roberto Calvi and why was he on the run in 1982?

Roberto Calvi was an Italian banker who worked for Banco Ambrosiano, a bank closely associated with the Vatican. He became a fugitive in 1982 due to his involvement in a $790 million bank fraud scandal and was trying to escape legal consequences.

How was the Vatican involved in financial activities during the Renaissance?

During the Renaissance, the Vatican was not only a significant political and religious entity but also a powerful financial institution. It relied on selling indulgences, a practice where the faithful paid for documents promising the remission of sins, to generate income and maintain its power.

What was the impact of Martin Luther's Reformation on the Catholic Church's finances?

Martin Luther's Reformation was a major financial setback for the Catholic Church. The widespread abuses in selling indulgences became a rallying cry for the Reformation, which ultimately transformed the religious world and negatively affected the Church's financial strategies.

How did the Vatican's financial situation change after the French Revolution and the rise of Napoleon Bonaparte?

The French Revolution and Napoleon's rise to power led to a severe financial catastrophe for the Vatican. French forces invaded Rome in 1798, ending papal rule and leading to Pope Pius VI's death in captivity, which nearly brought the Roman Catholic Church to an end.

Who were the Rothschilds and how did they help the Vatican financially in the 1830s?

The Rothschilds were a banking dynasty that played a key role in international finance during the 19th century. When the Vatican was in a dire financial situation in the 1830s, it turned to the Rothschilds for help, and James de Rothschild became the official papal banker, lending the Vatican a significant amount of money.

What role did Bernardino Nogara play in the Vatican's financial recovery during the early 20th century?

Bernardino Nogara was a devout Catholic with a strong financial expertise. He was chosen by Pope Pius XI to manage the funds that came from the Lateran Pax in 1929. Nogara's strategic investments and financial acumen helped the Church avoid financial collapse during the Great Depression.

How did the Vatican Bank (IOR) operate during World War II and what was its involvement with Nazi officials?

During World War II, the Vatican Bank operated in secrecy and without transparency, which made it an ideal vehicle for hiding and laundering money. It is estimated that the Nazis, realizing they were losing the war, turned to the Vatican Bank to help move their stolen gold, which was possibly transferred onwards to South America.

What was the significance of Michele Sindona's involvement with the Vatican Bank?

Michele Sindona was a financial hustler known for helping people evade taxes, a skill highly desired by the Vatican. His ability to quickly raise funds and manage financial operations made him a valuable asset to the Vatican Bank, although his involvement would later become one of the Church's worst mistakes.

What led to Roberto Calvi's downfall and eventual death?

Roberto Calvi's financial schemes could not be sustained, and he faced mounting legal and financial pressures. His former partner, Michele Sindona, threatened and attempted to blackmail him, leading Calvi to divert substantial funds to Sindona under duress. Eventually, Calvi was found dead, hanging from Blackfriars Bridge in London, in what appeared to be a dramatic public execution.

How did the Vatican respond to the scandals involving Roberto Calvi and Michele Sindona?

The Vatican publicly acknowledged that it was a mistake to work with Calvi but denied any involvement in his death. The Church agreed to pay $244 million in a legal settlement involving Banco Ambrosiano, and the public scandal led to a decrease in contributions from Catholics, resulting in a budget deficit for the Church.

What steps did Pope Benedict XVI take to address the clergy sexual abuse crisis and increase transparency within the Vatican Bank?

Pope Benedict XVI took significant steps to address the clergy sexual abuse crisis by meeting with abuse victims and taking action against the abusers. He also made efforts to increase transparency and compliance within the Vatican Bank, particularly in response to the scandals and financial difficulties the Church was facing.

Outlines

00:00

🏦 The Downfall of Roberto Calvi and Banco Ambrosiano

Roberto Calvi, an Italian banker for Banco Ambrosiano, a bank with close Vatican ties, becomes a fugitive in 1982 due to a $790 million bank fraud scandal. After fleeing to London, his body is found hanging from Blackfriars Bridge, sparking numerous theories about his death. The paragraph also delves into the Vatican's significant financial and real estate holdings and its historical financial strategies, including the selling of indulgences during the Renaissance, which led to significant income but also contributed to the Reformation and a major financial setback for the Church.

05:02

🤝 The Unlikely Alliance Between the Vatican and the Rothschilds

In the 1830s, the Vatican, facing a severe financial crisis, turns to the Rothschild Banking Dynasty for assistance. James de Rothschild becomes the official papal banker, providing a substantial loan that helps the Church to stay operational. The partnership leads to financial reforms and new ways for the Church to accumulate assets, including the selling of bonds to the Catholic faithful and investments in real estate and stocks, such as those of the Bank of Rome.

10:04

🛡 Vatican's Financial Strategies During War and Crisis

The Vatican's financial strategies during times of war and global crisis are highlighted, including its alliance with Germany during World War I, where it received covert funding labeled as Peter's Pence. Bernardino Nogara's role in managing the Vatican's finances is emphasized, especially during the Great Depression, where his investment strategies, such as buying gold and real estate, helped the Church avoid financial collapse.

15:04

🌐 Vatican Bank's Expansion and Secret Operations in World War II

The establishment of the Vatican Bank, or Istituto per le Opere di Religione (IOR), in 1942 is detailed, along with its secretive operations during World War II. The bank's unique abilities, such as not disclosing financial statements and destroying files every decade, made it an ideal vehicle for hiding and laundering money. It is alleged that the Vatican Bank helped Nazis move stolen gold and assisted in the escape of high-ranking Nazis to South America.

20:06

📈 The Rise and Fall of Michele Sindona and the Vatican's Financial Growth

Michele Sindona's rise from a tax-evading lawyer to a banking tycoon with connections to the Vatican is chronicled. His rapid growth and the risks he took, including the purchase of Franklin National Bank, are discussed. Sindona's eventual downfall due to risky trades and the collapse of his empire are detailed, as well as the Vatican's continued financial growth under the leadership of Cardinal Paul Marcinkus.

25:08

🕊️ Pope Francis and the Transformation of the Vatican Bank

The election of Pope Francis and his progressive approach to the papacy are outlined. His efforts to increase transparency within the Vatican Bank and the positive effects on the Church's image are highlighted. The paragraph also notes the increase in donations to the Vatican Bank due to higher mass attendance and participation in Catholic charities under Pope Francis's leadership.

Keywords

💡Banco Ambrosiano

Banco Ambrosiano was Italy's second-largest private bank in the 1980s, deeply entwined with the Vatican. The bank's collapse and the subsequent scandal involving its chairman, Roberto Calvi, are central to the video's narrative. It exemplifies the intersection of finance and religious institutions, highlighting the bank's significant role in the financial misdeeds and the moral ambiguities of the era.

💡Roberto Calvi

Roberto Calvi was the central figure in the Banco Ambrosiano scandal, found dead under suspicious circumstances in London. His story is integral to the video's exploration of financial fraud and the complex relationship between the Catholic Church and financial institutions. His death symbolizes the darker side of the Church's financial dealings and the consequences of such entanglements.

💡Vatican

The Vatican is portrayed as a powerful financial institution with vast real estate holdings and investments. It serves as a backdrop for the video's examination of the Church's financial activities, from its historical role in selling indulgences to its modern financial scandals. The Vatican's financial strategies and decisions have significant implications for both its moral standing and its global influence.

💡Indulgences

Indulgences were a historical financial strategy used by the Catholic Church, allowing the faithful to 'buy' forgiveness for sins. This practice is mentioned in the video as an early example of the Church's financial ingenuity and its moral complexities, setting the stage for later financial controversies.

💡Reformation

The Reformation, led by Martin Luther, is a pivotal moment in the video's historical narrative. It not only represents a religious upheaval but also a financial setback for the Catholic Church, stemming from widespread abuses in selling indulgences. The Reformation's impact on the Church's financial strategies is a key theme in understanding its evolution.

💡Napoleon Bonaparte

Napoleon Bonaparte's rise to power and the subsequent invasion of Rome are highlighted in the video as a turning point for the Vatican's political and financial stability. His actions led to the end of papal rule over Rome and the death of Pope Pius VI, marking a severe financial catastrophe for the Church.

💡Rothschild Banking Dynasty

The Rothschild Banking Dynasty is introduced in the video as a critical financial ally for the Vatican during its time of distress. The family's influence and the controversial nature of their alliance with the Church illustrate the lengths to which the Vatican would go to secure its financial future.

💡Istituto per le Opere di Religione (IOR)

The Istituto per le Opere di Religione, also known as the Vatican Bank, is a central institution in the video's narrative on the Church's modern financial activities. Established to operate in secrecy, the IOR is implicated in various scandals, including money laundering and the handling of illicit funds.

💡Michele Sindona

Michele Sindona is depicted as a financial hustler whose rise and fall are tied to the Vatican Bank. His involvement in tax evasion, money laundering, and eventual downfall reflect the darker aspects of the Church's financial dealings and the high-stakes world of finance.

💡Archbishop Paul Marcinkus

Archbishop Paul Marcinkus served as the president of the Vatican Bank and is a key figure in the video's account of the bank's expansion and scandals. His tenure was marked by controversy, and he was implicated in financial mismanagement, reflecting the challenges of transparency and accountability within the Church's financial operations.

💡Pope Francis

Pope Francis is presented as a transformative figure who brought about significant changes within the Church, particularly in its financial practices. His leadership marked a shift towards greater transparency and ethical finance, with the publication of annual financial reports by the Vatican bank under his pontificate.

Highlights

In 1982, Italian banker Roberto Calvi, associated with Banco Ambrosiano and the Vatican, was found dead under suspicious circumstances in London.

The Vatican's significant financial interests include the world's largest real estate collections and involvement in numerous corporations.

During the Renaissance, the Vatican capitalized on selling indulgences, contributing to its wealth but later sparking the Reformation.

The Vatican faced a severe financial crisis in the 18th century, which led to Pope Pius VI's death in captivity.

In the 1830s, the Vatican turned to the Rothschild family for financial support, marking the first time it borrowed from a Jewish banker.

The Vatican's financial strategy evolved to include Peter's Pence, selling bonds to the faithful, and investing in real estate and stocks.

The Vatican Bank, established in 1942, operated in secrecy without the need to disclose financial statements or activities.

The Vatican Bank was allegedly involved in laundering Nazi assets and aiding their escape to South America post-World War II.

Bernardino Nogara played a pivotal role in managing the Vatican's finances during the Great Depression, securing its financial stability.

The Vatican's financial dealings became a liability, leading to the downfall of key figures like Roberto Calvi and Michele Sindona.

The Vatican faced a public scandal and financial crisis following the Banco Ambrosiano collapse, affecting its credibility and donations.

Pope Francis introduced transparency and financial reforms in the Vatican Bank, publishing annual financial reports and increasing donations.

The Catholic Church's global population continues to grow, with an increase in Africa and Asia, shifting the geographic centers of the church.

The Vatican's history of engaging in capitalism has led to predatory practices that conflict with Catholic faith values.

Despite past financial crises and scandals, the Vatican remains a unique and powerful institution with a growing global Catholic population.

Transcripts

On a quiet night in 1982, Italian

banker Roberto Calvi is on the run.

He has spent a lifetime working for Banco

Ambrosiano, a bank whose

biggest customer is the Vatican.

But now he's a fugitive, desperately trying to

escape the long arm of the law.

An Italian smuggler arranged for him to be driven

overnight to Austria, where he shuttled

between several cities for a few days before

boarding a private charter in Innsbruck for

a flight to London.

After arriving in London, he

finally can catch his breath.

He has no idea what fate awaits him.

The body of a missing Italian financier, Roberto

Calvi, the central figure in a $790 million

bank fraud scandal, was found hanging from a London

bridge Friday, the police said today.

Mr. Calvi, dismissed as head of Italy's second

largest private bank, had been missing for

nine days.

The police said a stroller came across his body

early Friday, hanging from the scaffolding

of Blackfriars Bridge over the Thames River in the

heart of London's financial district.

For centuries, the Catholic Church has been a

monumental pillar of human history.

From the echoing halls of the Vatican to the

humblest of rural chapels, its influence has

permeated every corner of the globe.

But it is also a powerful financial institution,

with the world's largest real estate collections

and vested interests in a

vast number of corporations.

The Vatican owns more than 5,000 church and

investment properties around the world, a

central office at the Catholic Church revealed for

the first time Saturday, according to

several news outlets.

Well, I think every Catholic who reads a story like

this ends up caring, because in the end

they want to know where their money is going.

The Vatican's need to generate revenue, like any

large institution, has occasionally led

to decisions that some could

perceive as morally ambiguous.

It is the height of the Renaissance, and Italy is

the epicenter of this movement, with

major contributions in painting, sculpture,

literature, and architecture.

Around this time, the Vatican is a powerful entity

in Europe, exerting considerable political

power, influencing rulers, and governing a

substantial territory in central Italy known

as the Papal States.

To maintain its power, the Vatican needs an

ever-growing source of income.

It relies on a brilliant strategy to take Vatican

finances to the next level.

Selling Indulgences

The Church found the money it needed in the selling

of so-called indulgences, a sixth

century invention whereby the faithful paid for a

piece of paper that promised that God

would forego any earthly

punishment for the buyer's sins.

The Vatican set prices according to the severity of

the sin, and they were initially available

only to those who made a pilgrimage to Rome.

This strategy has brought significant income to the

Vatican, causing its assets to skyrocket.

But what the Church doesn't realize is that this

strategy for generating extra income

is quickly getting out of control.

The licentious lifestyle of the Papal Court and the

widespread abuses in selling indulgences

became a rallying cry for

Martin Luther and the Reformation.

Ultimately, Martin Luther's

Reformation transforms the religious world.

And for the Catholic Church, it also

represents a major financial setback.

But approaching the end of the 18th century, the

Vatican will suffer an even worse financial

catastrophe.

In 1789, a crisis is brewing in France.

After decades of growing anger with the government,

a revolution erupts, culminating in the overthrow

of the monarchy and the

establishment of a republic.

Europe is thrown into chaos once again.

But one man uses this chaos as a ladder, Napoleon

Bonaparte, who rises to power in the aftermath

of the revolution.

He immediately sees the

advantage of controlling the papacy.

By 1798, French forces have invaded Rome itself,

proclaiming a Roman republic and effectively

ending papal rule over the city.

Pope Pius VI dies on August 29, 1799, in Valence,

France, still in French captivity.

The fall of the Vatican and the subsequent death of

Pope Pius VI nearly bring the Roman

Catholic Church to an end.

In the 1830s, after the upheaval of the Napoleonic

Wars and the Congress of Vienna in 1815, the

papal states are restored to papal control.

But the Vatican is in a dire financial situation.

Desperate for enough funding to remain operational,

the Church reaches out to an unlikely financier,

the Rothschilds.

In the 1830s, the Rothschild Banking Dynasty

established itself as a key player in international

finance.

By stationing its members across key European

cities, Frankfurt, London, Paris, Vienna,

and Naples, the Rothschilds were extensively

involved in government finance, issuing bonds

and lending money to states, especially during

times of distress when higher interest rates

could be charged.

And at the time, there is one powerful entity in

Europe in such financial distress.

In 1831, Gregory XVI became pope.

He knows the Vatican might not survive long unless

there is an immediate cash infusion.

For the first time in the Church's history, the

Vatican decides to borrow money from the

most prominent Jewish banker.

James de Rothschild, head of the family's

Paris-based headquarters, becomes the official

papal banker.

One of his brothers, Carl, who runs the family's

Naples branch, begins traveling to Rome to

consult with the pope.

Their financial empire prompted a mixture of envy

and resentment among Church officials.

Most traditionalists, who referred to James as the

leader of international Jew-ry, were

appalled that the Church had resorted to Christ

killers for financial succor.

French poet Alfred de Vigny wrote that "a Jew now

reigns over the pope and Christianity.

He pays monarchs and buys nations."

The Rothschilds lend the Vatican 40 million euros in today's money.

It becomes a lifeline that

the Church desperately needs.

The unlikely alliance is forged, and with the

Rothschilds' influence, the Church begins

a series of financial reforms, which mean more ways

for the Church to accumulate assets.

Historically, the Vatican collected money through

what is called Peter's Pence.

It dates back to at least the 8th century, and it

has its roots in England, where Anglo-Saxon

kings collected annual tax for

the land to support the pope.

This donation, known traditionally as "Romescot,"

was collected on the feast of Saints Peter

and Paul, and was sent to the pope as a gesture of

solidarity and support for the papacy.

But for the Catholic Church at the time, that

income source alone is not sufficient, and

they soon begin to sell

bonds to the Catholic faithful.

These bonds are essentially financial instruments

that individuals can purchase, thereby loaning

money to the Vatican with the

promise of repayment, often with interest.

This method allowed the Vatican to raise the

necessary funds while engaging the faithful

directly in supporting the papal mission.

But the Vatican doesn't stop there.

As the capital market system is being adopted

across Europe, the Vatican Bank, with vast

amounts of gold, needs to diversify into other

assets and grow its wealth.

And the Vatican begins investing in real estate

across Rome, buying up properties and renting

them out to generate income.

But the Church also realizes the potential of

stocks and begins investing heavily in

the stocks of the Bank of Rome,

hoping to grow the wealth of the Church.

The investment in the Bank of

Rome has been a profitable one.

Within years of investing in the bank's stocks, it

has created huge profits for the Church.

As the Vatican emerges onto the financial market as

a major player, many companies,

and even countries begin to view the Vatican as a

partner to do business with.

One of them is Germany.

After the assassination of Archduke Franz Ferdinand

of Austria-Hungary by a Serbian

Europe is once again thrown into war on a scale

unprecedented in world history.

As the war escalates, Pope Benedict XV, who assumed

the papacy in 1914, finds himself

navigating a treacherous path

between the warring nations.

The war has caused a lot of

financial strain on the Church.

Remember, the Church's major income comes from

donations from various countries.

During wartime, people simply don't

have the money or the time to donate.

But Germany sees the importance

of having the Vatican as an ally.

Germany also knows that it can't

just give money to the Vatican outright.

Germany was covertly funneling cash to the Church

through Swiss banks and labeling it

Peter's Pence.

That helped stabilize the Church's finances.

The German Foreign Ministry separately sent the

Vatican cash from a propaganda slush fund.

And the Austrians joined with a

clandestine subsidy to Benedict.

And it soon becomes clear that the Vatican is an

ideal party for covert money operations.

The Vatican realizes that it needs a professional

to manage its growing financial empire.

And soon, they find the perfect man for the job.

Bernardino Nogara grew up in a middle-class farming

family with Jewish lineage near Lake

Como.

But Nogara was a devout Catholic who graduated with

honors in industrial and electrical engineering

from Politecnico di Milano

Starting in the mining industry, Nogara quickly

develops a reputation for his financial acumen,

especially his ability to manage risk.

His career propels him to become the Italian

delegate to the Ottoman Public Debt Council

and to participate in the Versailles Peace

Conference after World War I.

And for Nogara, a bigger opportunity awaits.

After a masterly speech by Premier Mussolini the

Senate this evening by 315 votes to six

Approved the latter entreaties affecting the

pacification of the church and state in Italy

amidst stirring scenes of enthusiasm

In 1929, the country of Italy and the Vatican

reached a landmark agreement.

Known as the Lateran Pax, it creates Vatican City

as its own country, allowing the Pope

to rule it.

As part of the agreement, the government of Italy

pays the Holy See 750 million Italian

lira in cash and 1 billion

lira in government bonds.

With this sudden increase in capital, the Vatican

needs a man capable enough to manage

it.

Nogara was very well connected, even though there

were some whispers about the family's

Jewish background.

He seemed like a very faithful Catholic and had a

really strong financial expertise, so

Pope Pius chose him to handle the significant funds

that came from the Lateran Pax.

Within just months, after Nogara becomes the banker

for the church, a global crisis erupts.

Premier Mussolini delivered in the Senate a frank

and caustic speech on Italy's financial

and economic situation in which he blamed this

country's ills on the depression in

America.

Initially, after the crash of 1929, there was a

V-shaped recovery, and people thought

it was just a temporary stock market glitch, but

the real economic depression didn't really

hit until two and three years later.

By 1932, the Great Depression has

reached and spread all over Europe.

The Vatican sees its assets lose 30% of their

value, and its debt payments mount.

To tackle the financial difficulty, Pope Pius XI

gives Nogara full authority to do whatever

is necessary to help save the Vatican's finances.

For Nogara, it is the biggest

challenge he has ever faced.

He knows that if he lets the Vatican go bankrupt,

all the blame will fall on him, and he may

go down as one of the most hated people in history.

To boost finances, he asks the Pope to declare 1933

a holy year to boost donations from believers.

Nogara also begins to hedge against any potential

financial downfall by loading up on gold.

The way we like to describe gold

is it's a hedge against debasement.

Let's go back to the word debasement.

Where does it come from?

Adding base metals into precious metals.

You're debasing the gold.

So if you own pure gold, it's a

really good hedge against debasement.

He also begins to buy up real estate at low prices

in France, Britain, and Switzerland.

At the same time, he notices price discrepancies

with various government bonds.

He sees an opportunity for arbitrage.

To ensure his actions don't draw unnecessary

attention to the Church, he establishes a

network of holding companies to manage these

investments discreetly, ensuring confidentiality

and minimizing political and financial exposure.

Thanks to his trading strategy and financial

acumen, the Church avoids another financial

collapse by 1936.

His strategic investments position the Church for

an unprecedented recovery, especially

with its real estate holdings soaring in value.

Bernardino-Nogara is now one of the most important

and powerful men in the Vatican.

The Vatican may have bounced back from the Great

Depression, but little does it know

that another global crisis is about to erupt.

On September 1, 1939, Germany invades Poland,

showing the world just how powerful the country

has become.

What Hitler's army introduced was

the onset of mechanized warfare.

So this is tanks supported by infantry, artillery

supporting them, and then on top of that you

had tactical air support.

They're all coordinated, synchronized, harmonized,

and moving very, very rapidly.

Back in Italy, Mussolini's government

is preparing to make a move as well.

Nogara sees a great risk with

the potential global conflict.

He realizes the urgency to

safeguard the Vatican's assets.

The way to do this is by moving assets to neutral

countries at the time, namely Switzerland

and the United States.

But America won't remain neutral for long.

Yesterday, December 7, 1941, a date which will live

in infamy, the United States of

America was suddenly and deliberately attacked by

naval and air forces of the Empire of Japan.

After the Pearl Harbor attack,

America is drawn into the war.

The US also begins economic sanctions on Axis

powers, including Japan, Germany, and

Italy, with asset freezes and import controls.

This is when Nogara's talent really shined.

His goal was solely focused on maximizing and

safeguarding the church's wealth.

And because of his strategic investments in

America, he was able to secure exemptions

from the US economic sanctions.

And he doesn't stop there.

To better navigate the financial environment during

World War II, Nogara realizes that

the Vatican should have its own bank, one that has

the ability to operate in complete

secrecy and without any transparency.

On June 27, 1942, the Vatican establishes the

Istituto per le Opere di Religione, also known

as the Vatican Bank.

The IOR operated without the need to disclose its

financial statements or activities publicly,

did not pay taxes, and was

not required to show profits.

It also had the unique ability

to destroy its files every decade.

It's a perfect vehicle to hide and launder money.

By 1945, Nazi officials

realized that they are losing.

They turned to the Vatican

Bank to help move their money.

It is estimated that the Nazis stole $598 million

dollars, this is 1945 dollars, worth

of gold.

Around 200 million Swiss francs worth of gold are

allegedly funneled through the Vatican

Bank and possibly

transferred onwards to South America.

And it doesn't stop there.

The Vatican also begins helping Nazi fugitives

escape to South America as well.

U.S. intelligence had concluded that Archbishop

Antonio Cajano, a close Peron ally, was a

conduit between the Italian escape networks and the

South American Church, and that the

Vatican, as an institution, not merely as a group

of scattered rogue clerics, was helping

high-ranking Nazis escape justice.

In the aftermath left by World

War II, the continent lies in ruins.

From the smoldering ashes of once great cities to

the shattered lives of millions, Europe

now needs rebuilding.

To take full advantage of Europe's resurgence,

nogara realizes there are two industries in

which the Vatican must invest heavily, the

construction industry and the banking industry.

Real estate has been, and perhaps always will be, a

profitable business for the Church.

In 1956, the Church made millions just by selling

lands to Italy to prepare for the

Summer Olympics.

As the Vatican Bank widens its financial empire

across different countries, it needs someone

with legal expertise to

streamline transactions and investments.

And in the late 1950s, an up-and-coming financial

hustler is looking for an opportunity to make

a name for himself.

His name is Michele Sindona.

Michele Sindona grows up in a

poverty-stricken family in 1920.

But even as a young man, Sindona shows an

above-average ability with numbers.

Michele Sindona's aptitude for math wins him a full

scholarship to the University of

Messina.

But after graduation, he

feels stuck at a dead-end job.

He knows that to become rich, he must be willing to

take risks that others don't

have the guts to take.

Soon, he finds his groove, helping wealthy people

and organizations evade taxes, including

the mafia.

At the beginning of the 1950s, he traveled to New

York and met with the Gambido family.

In 1957, he had become closely associated with them

and was chosen to manage their profits

from heroin sales.

His ability to help people avoid taxes means he can

maximize profit for his clients.

It is a skill highly desired by the Vatican.

In early 1959, the future pope of the Catholic

Church, Montini, John XXIII, wants to build

a retirement home called Casa Madonina.

But he wants to raise money secretly and quickly.

So he turns to Sindona for help.

Sindona was able to raise $2 million

needed for the project in a single day.

This kind of speed of moving money around will come

really handy for the Church in the

future.

In the end, working with Sindona will be one of the

worst mistakes the Church has ever

made.

But in the meantime, the Church is poised to make

more tax-free money than at any other

time in its history.

As the Vatican's finance becomes more global, the

Church promotes Cardinal Paul Marcinkus

as the president of the Vatican Bank.

Marcinkus grew up in a

working-class American family.

He was educated at Quigley Preparatory Seminary and

later at the University of St. Mary of

the Lake in Mundelein, Illinois, where he was

ordained a priest in 1947.

The 6'3" American-born Marcinkus seemed more like a

football lineman than a low-ranking

clerical bureaucrat assigned to

the Secretary of State's office.

When he drank whiskey, he did not hide the bottle

when a senior cleric walked into the

room.

He smoked cigars and did not ask

permission before lighting one.

As American working for the Vatican,

Marcinkus was a very great diplomat.

He was adept at handling all the international

assignments given by the Church.

And he managed to become a part

of the inner circle of the Pope.

For Marcinkus, his predecessor

Nogara's achievements loom large.

He knows that although he doesn't have that

financial genius, he is determined to accomplish

great things for the Vatican by

working with smart financiers.

People like Sindona and Roberto Calvi.

Roberto Calvi grew up in a banking family.

His father was a prominent banker.

At a young age, his father showed him there was

only one business worth getting into.

The business of money.

From the very beginning, he learned that by

networking and moving money around, it was

possible to build a fortune without having to

create or build anything himself.

In 1960, while working at Banco Ambrosiano, a bank

catered to Catholic clients, Calvi

has the major breakthrough when

Sindona introduces him to Marcinkus.

As the new president of the Vatican bank, Paul

Marcinkus is criticized for his lack

of financial training.

Marcinkus believes that in order to make up for

that shortcoming, he needs to do something

big.

And Calvi could be just the

guy to make it happen for him.

Unlike his predecessor, Nogara, he lacked the

ability to master the complexities of

international finance.

Some speculate that Marcinkus, being financially

illiterate, was easily taken advantage of

by Calvi and Sindona.

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As the chief at the Vatican bank, Marcinkus wants

to greatly expand the bank's business

and operation to a global scale.

Roberto Calvi immediately sees this as an

opportunity to prove himself to Marcinkus.

At the time, the Vatican bank and Banco

Ambrosiano wanted to engage in more aggressive,

riskier and more profitable businesses.

But being in Italy, they

faced a lot of regulations.

An obvious way to circumvent this was by creating

satellite banks in other countries with little

to no regulations.

Calvi decides to partner with Sindona, and together

they form Sisselpene Overseas Bank

in the Bahamas.

This bank will serve as a vehicle to channel

Vatican money discreetly and use that to enter

the global market, especially the American market.

With the backing of the tax-free money from the

Vatican, Calvi and Sindona decide to go

on a buying spree.

In Italy, he and Calvi bought La Centrale

Financiaria, a financial holding company that

had long been on his wish list.

And at the behest of Graham Martin, the American

ambassador to Italy, Sindona purchased an

influential Rome-based

English-language newspaper, The Daily American.

For Sindona, there is a

grand prize waiting for him.

The Lowe's Corporation announced yesterday that it

had sold a block of one million shares

of the Franklin New York Corporation, the parent

company of the $3.3 billion Franklin

National Bank, to FASCO International Holdings AG,

which is wholly owned by Michele Sindona,

an extremely wealthy but

little-known Italian financier.

Franklin National Bank is the 18th largest bank in

America at the time of the takeover,

with assets valued at $3.4 billion.

Michele Sindona has gone from an Italian lawyer to a

banking tycoon in America.

Within just a few short years, Calvi and Sindona

have grown their own financial empires

bigger and faster than almost anyone.

With the protection and backing of the Vatican

Bank, no one can touch them.

There is but one exception.

After taking over a Franklin National Bank, Sindona

begins to engage in risky foreign

exchange trades using the bank.

Soon enough, the bank incurs

tens of millions in losses.

The outflow of deposits from the Franklin National

Bank increased somewhat during the

week ended Wednesday.

As a result, the bank has now lost nearly 24% of

its deposits since its troubles first

came to light on May 10.

Four thousand miles away from the U.S., Sindona's

investment in Italian banks also begins to

fail.

This must have been a really

chaotic period for Sindona.

He tried to use his legal expertise by merging

various banks together to hide losses.

Sindona hopes that as a major U.S. bank, Franklin

National Bank will survive through a government

bailout.

But he has no idea what is about to happen.

The Franklin National Bank was declared insolvent

yesterday in the largest bank failure in American

banking history.

The institution was immediately taken over by the

European American Bank and Trust Company,

a New York state chartered entity owned by six of

the largest banks in Europe.

By the early 1970s, Sindona's

world is collapsing down on him.

The Italian authorities have liquidated all of his

assets in Italy and seek the extradition

of Sindona from the U.S.

And with Franklin National's collapse, the U.S.

Justice Department is also looking to

indict Sindona.

With the complete collapse of Sindona's empire, one

man sees an opportunity to exploit and

profit from the situation for himself.

With his former partner in peril, Calvi realizes

that he can take over Sindona's assets for

pennies on the dollar and use that

to deepen his ties with the Vatican.

So he essentially claimed the stocks that Sindona

used to own in these various shell

companies and satellite banks, making himself the

largest shareholder in all of these firms.

And with Sindona in jail, the Vatican's

international business is now

mostly in the hands of Calvi.

The Ambrosiano and the Vatican bank were shuffling

back and forth tens of millions of dollars

between their many offshore companies.

The IOR by this time had loaned or invested $175

million in Calvi-backed offshore companies.

But Sindona, desperate, is not

about to back down from Calvi.

He begins to threaten and attempt

blackmail against his former partner.

Sindona tries to force Calvi to provide financial

help to cover his spiraling legal costs and

to support him through fraudulent schemes.

Under pressure, Calvi gives in.

He diverts substantial funds to Sindona.

This includes a significant transaction where Calvi

is forced to wire $500,000 to Sindona's

account under duress.

But for Sindona, it isn't enough.

He demands more payment from Calvi.

When Calvi refuses, Sindona tips off journalists

about Calvi's secret Swiss bank accounts,

leading to massive public and legal scrutiny.

In just three years, Calvi struggles to keep his

financial empire afloat amid mounting

legal and financial pressures.

His own financial empire is crumbling.

By 1982, Roberto Calvi realizes that his financial

schemes cannot be sustained any longer.

On the night of June 10th, he

decides to flee Italy for London.

From Mugia, an Italian smuggler arranged for him to

be driven overnight to Austria, where

he shuttled between several cities for a few days

before boarding a private charter

in Innsbruck for a flight to London.

He spent the last three days of his life in flat

881, a tiny room at the Chelsea Cloisters,

a dreary guest house in the

capital's posh South Kensington district.

The body of a missing Italian financier, Roberto

Calvi, the central figure in a $790 million

fraud scandal, was found hanging from a London

bridge Friday, the police said today.

Mr. Calvi, dismissed as head of Italy's second

largest private bank, had been missing for

nine days.

The police said a stroller came across his body

early Friday, hanging from the scaffolding

of Blackfriars Bridge over the Thames River in the

heart of London's financial district.

No doubt that Calvi had a

strong connection with the Vatican.

His activities helped bring a lot of money into the

church, but as Banco Ambrosiano

came close to failing, threatening to reveal more

than just financial losses, this has

turned Calvi from an asset to

a liability for the Vatican.

Could it be that those who once offered him

protection have turned their backs, or worse,

created his demise to silence his confessions?

Michelle Sindona, who at the time was a disgraced

banker and former ally of Calvi, became yet

another potential suspect.

Their partnership used to be very profitable for

both of them, but now it has gone bad

because of the accusations and betrayals.

Sindona was very clever, and he was

also facing his own legal problems.

He might have seen Calvi's

downfall as a final chess move.

In the cutthroat world of high finance and higher

stakes, revenge is more than just a

motive.

It is a statement.

The darkest possibility is the mafia.

Calvi had been their money manager, laundering

large amount of money through the complex

network of Banco Ambrosiano, but working for the

mafia came with a huge risk.

His death, set up like a dramatic public execution

under a bridge named Blackfriars,

looks like a mafia killing, a warning written in

the criminal world's record.

In the end, the Vatican decides to publicly

acknowledge that it was a mistake to work

with Calvi, but denies that it

has anything to do with his death.

The church agrees to pay $244 million in a legal

settlement involving Banco Ambrosiano

The public scandal is a huge blow to the church.

Seeing their money being misused, Catholics around

the world decide to lower their contributions

to the Vatican, leading to a budget deficit for the

church from around 1984 to 1985.

After the death of Calvi, Sindona fights hard to

avoid being extradited to Italy, because

he knows that may just be a

death sentence for him as well.

But on March 30, 1985, Italian authorities

successfully extradite Michele Sindona to Italy.

Sindona's worst fear comes true.

Michele Sindona, one of Italy's most successful

financiers whose empire collapsed amid charges

of fraud and murder, died today in a Voghera hospital

of cyanide poisoning.

He was 65 years old.

His mysterious death removed from the scene a man

who was at the center of many of Italy's

most important recent

financial and political scandals.

Sindona was one of Mafia's favorite member, but

things changed when his golden touch failed,

losing millions in Mafia's money through bat

management and the eventual collapse of

his financial empire.

The Mafia, like the Gambido family, known for their

ruthlessness, rarely forgives such

a mistake.

His fall from grace makes him a marked man.

His knowledge and potential cooperation with

authorities make him a dead one.

The cyanide-laced coffee could easily have been the

Mafia's closing statement, a signature

act of retribution.

Their reach extends even behind

bars, and the message is clear.

Betrayal, real, or perceived is a

deadly sin with only one atonement.

Archbishop Paul Marcinkus had long dealt with the

murky finances of the Vatican.

His partnership with Sindona had

been very extensive and secretive.

But as Sindona's usefulness decreased and his risks

increased, rumors of his potential

testimony involving Vatican-backed operations

turned him from a helpful ally into a threat.

Could it be that Marcinkus, acting on a higher

directive or his initiative, orchestrated

Sindona's silent assassination to forever seal

those lips that threatened to speak?

With the permanent silence of Calvi and Sindona,

the Vatican's secret dealings with them may

be permanently buried.

But what they don't know is that

their trouble is far from over.

Vatican authorities last week issued a warrant for

the arrest of Archbishop Paul C. Marcinkus,

but it did not appear that they would be

confronting him anytime soon.

For the Vatican, if an archbishop is arrested, the

publicity will be a huge blow to the Church,

and it will likely destroy the beliefs of many of

the faithful, leading to even less

donations from them.

Remember, the Vatican is its own sovereign state.

So they don't have to let any

country arrest any of their own people.

So the Church fought really, really hard against

Italian jurisdiction over Marcinkus.

The Vatican, throwing its full weight behind

Archbishop Paul C. Marcinkus, issued a sharply

worded statement today expressing "profound

astonishment" at efforts by the Italian authorities

to arrest the American head of the Vatican bank and

two of his closest associates.

Despite being implicated in the massive financial

scandal surrounding the

collapse of Banco Ambrosiano

in 1982, Marcinkus manages to avoid legal

consequences primarily due to the legal protections

afforded by his position within the Vatican.

In the 1990s, the Vatican bank faces

unprecedented scrutiny and scandal.

The institution struggles under the weight of

corruption allegations and financial mismanagement.

With the retirement of Marcinkus, the Church is

eager to look for a replacement that can

restore the trust of the Vatican bank.

The Church was looking to hire Angelo Caloia, a

respected banker known for his commitment

to ethical finance.

Caloia is the CEO of Mediocretito Lombardo, a

prominent merchant bank in Milan.

Notably, he is deeply involved in the Catholic

financial community as a leading member of

the Group for Culture, Ethics, and Finance.

The Church realizes to help repair the damaging

reputation left by Marcinkus, Caloia is the

perfect candidate for the job.

The Vatican today turned over the management of its

scandal-tainted bank to financial experts

not connected with the clergy, ending the 20-year

presidency of Paul C. Marcinkus, an

American archbishop.

During the first few years, Angelo Caloia battles

internal resistance and attempts reforms.

With secret accounts, illicit financial flows, and

high-profile legal challenges, the bank

struggles highlight significant governance issues.

The results of Caloia's initiatives are mixed.

The IOR continues to face

legal and ethical challenges.

The Vatican and Caloia may have been focused on

fixing the Church and its finances, but

their problems are about to be dwarfed.

A crisis is brewing, one that will expose a

darkness far greater than any financial misdeeds.

Cardinal Bernard Law, who protected the priest

accused of molesting more than 130 children,

is under growing pressure to resign himself.

Boston's Bernard Cardinal Law breaks his silence

and apologizes in the case of a former

priest accused of molesting children.

More than 130 people have accused this man, John

Gagan, of assaulting them over three

decades, and dozens have charged that Cardinal Law

and the Catholic Church protected Gagan.

In 2002, a series of reports by the Boston Globe's

investigative team, known as the

Spotlight Team, uncovers a pattern of sexual abuse

by priests in the Boston Archdiocese,

as well as efforts by church leaders to cover up

the incidents and protect the abusers.

The escalating sexual abuse scandal involving a few

priests has shaken not just the American

Catholic Church, but also the Vatican.

Pope John Paul II has summoned U.S. Cardinals for a

meeting next week in Rome.

The meeting will provide "guidelines aimed at

restoring a sense of safety and tranquility

to families and trust to clergy and the faithful."

While the scandal is initially most prominent in

the United States, similar allegations

soon emerge worldwide, including in Ireland,

Australia, Canada, and various countries in

Europe and Latin America.

As a result of the scandal, the Vatican faces a

financial fallout on a scale they have

never seen in its recent past.

The scandal crushes the faith of

many Catholics around the world.

Many dioceses worldwide face enormous financial

burdens due to settlements and legal costs

associated with sex abuse cases.

This leads to some dioceses, like

Portland, Oregon, declaring bankruptcy.

Others have to liquidate assets, close schools, or

tap into clergy pension and retirement

funds to cover settlements and legal expenses.

The scandal affects the Catholic Church's income,

particularly contributions to the

Peter's Pence Collection,

which supports Vatican activities.

Amid the scandal and the financial difficulties,

Pope John Paul II passes away on April 2,

2005.

After the passing of Pope John Paul II, a

surprising candidate rises to the top and

gains the votes to become the next pope.

Cardinal Joseph Ratzinger becomes the first German

pope in a thousand years.

He became pope at a very peculiar time.

The church, and particularly the Vatican bank, was

still acting with a lot of secrecy and

backroom dealings.

There was a demand from everyone else for more

transparency and adherence to regulations

in different countries.

As the new pope, Benedict makes efforts to increase

transparency and compliance within

the Vatican's financial

institutions, particularly the Vatican bank.

To repair the broken image left by the sex scandal,

Benedict takes significant steps

to address the clergy sexual abuse crisis.

He is the first pope to meet with abuse victims, an

action he repeats in several countries.

But none of his actions will

prevent the storm that happens next.

The Pentecostal Mass at St Peter's Basilica.

It is normally a moment of celebration, but these

are difficult times for the leader of

the Catholic Church.

His Holy See at the center of scandal.

And hours before the pope's personal butler, Paolo

Gabrielle, was charged with possessing

confidential papal papers.

In 2012, Paolo Gabrielle, the butler to Pope

Benedict, steals and leaks documents exposing

internal Vatican correspondence, including letters

and memos between high-ranking officials.

They reveal a range of issues, such as allegations

of corruption, financial mismanagement, power

struggles, and internal

conflict within the Vatican hierarchy.

The leaks caused huge embarrassment to the Vatican,

exposing deep rifts and power struggles

that led to widespread media coverage and public

scrutiny, adding pressure to an already

embattled institution

grappling with various scandals.

The Vatican condemns the leaks and initiates an

internal investigation, which leads to

the identification and arrest of Gabrielli.

He is subsequently tried and found guilty of theft

in October 2012, receiving a sentence

of 18 months in prison, which is later commuted by

Pope Benedict XVI as part of a papal pardon.

By 2012, the pressure that Pope

Benedict XVI faces is immense.

At the same time, the U.S. lists the Vatican as a

concern for money laundering.

The State Department has put the Vatican on a list

of countries of concern for money

laundering or other financial crimes.

Robert Mickens, correspondent for the Catholic

Weekly The Tablet, says it's suspected that

the Vatican bank is run like an offshore bank.

Like a Swiss bank account, hiding funds, it's

suspicion, but many of the regulators think

it's well-founded suspicion.

To make matters worse for the church, Italy's

central bank blocks electronic payments in

the Vatican due to its

noncompliance with EU regulations.

A month later, Pope Benedict

makes a shocking announcement.

Welcome back to ABC Action

News on this early Monday morning.

We're following breaking news as

you wake up and get your day started.

Pope Benedict XVI announcing just a little over

half an hour ago that he is stepping

down as leader of the Catholic Church.

This is an unprecedented move in modern times.

It's been many hundreds of years since the Pope

resigned while in office.

Most of them, of course, die while in office.

The situation facing the Vatican may seem dire, and

the next Pope is going to change

all of that.

Jorge Mario Bergoglio was born on December 17,

1936, in Buenos Aires, Argentina.

Before 2013, he served as the Archbishop of Buenos

Aires from 1998 and was made a cardinal

in 2001 by Pope John Paul II.

Following Pope Benedict XVI's unexpected

resignation, the Cardinals have a very limited

time for any pre-conclave political maneuvers.

Despite not being a front-runner and having

previously planned for retirement, Bergoglio

emerges as a strong candidate in a tightly

contested election, ultimately winning on

the fifth ballot.

Pope Francis quickly distinguishes himself with his

humble, populist approach, contrasting

sharply with his predecessor's style.

He shuns traditional papal luxuries and focuses on

outreach to the poor and marginalized.

His approach to contentious issues like

homosexuality, abortion, and

church doctrine is more inclusive

and compassionate, which resonates with many but

also sparks debates about the potential

for doctrinal changes.

Pope Francis was much more

progressive than his predecessor.

Early in his role, he refreshed the church's image,

appealing widely to Catholics and non-Catholics

around the world.

The effects of Pope Francis have

fared even better for the Vatican bank.

As a result of increased mass attendance and

volunteer participation in Catholic charities,

the Vatican bank receives an unprecedented amount

of donations from the faithful again.

In 2024, under the leadership of Pope Francis, the

Vatican bank publishes annual financial

reports regularly, enhancing its transparency.

While Europe and America see a decrease in the

number of priests, there is an increase

in Africa and Asia, indicating a shift in the

geographic centers of growth within the

church.

Despite its recent turbulent financial crises, the

church may have finally found a place

There are nearly a thousand men, most celibate, who

live and work together and

wield not only great earthly power,

but who believe for the most part that they have

inherited divine rights and

safeguarding the one and true Church.

In the end, they are human, hobbled by the same

frailties and shortcomings

common to the rest of us.

The Vatican will always be a

unique presence in the world.

Throughout its recent history by embracing

capitalism, the church has engaged in many

predatory practices that go

against the Catholic faith.

The global Catholic population continues to grow,

reaching 1.378 billion by the end of

2021, which represents a 1.3%

increase from the previous year.

In the long run, regardless of its past mistakes,

this powerful and seminal institution will

live on.