Vatican bank faces fresh controversy

By Giulia Segreti
Financial Times
May 21, 2014

http://www.ft.com/intl/cms/s/0/3b1111fe-e0e7-11e3-a934-00144feabdc0.html#axzz32NB57lbY

The Vatican’s troubled bank is embroiled in fresh controversy over its financial management following revelations that it faces losses of €15m over a loan sought by Cardinal Tarcisio Bertone for an Italian media company headed by a long-time acquaintance of the Holy See’s then secretary of state.

Cardinal Bertone, who retired last year from the second most powerful position in the Vatican hierarchy, confirmed a €15m convertible loan was made to Lux Vide, a television production company specialising in religious programmes. In a statement on Tuesday he said that the operation was carried out “regularly”.

A Vatican official familiar with the matter who asked not to be named, confirmed that the senior prelate was instrumental in approving the loan in December 2012 when he headed the commission of cardinals overseeing the Vatican bank, formally known as the Institute for the Works of Religion (IOR).

The controversy, which raises questions over the bank’s handling of its finances, prompted Father Federico Lombardi, Vatican spokesman, to deny a report in the German newspaper Bild on Tuesday that the 79-year-old cardinal was under investigation by Vatican magistrates.