Banco Ambrosiano

Banco Ambrosiano (which was closely related to the Vatican's bank) was an Italian bank which collapsed spectacularly in 1982. At the centre of the bank's failure was its chairman, Roberto Calvi and - supposedly - his involvement with the powerful masonic lodge P2.

Related Topics:
Vatican - Italian - 1982 - Roberto Calvi - Masonic - P2

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The Banco Ambrosiano was founded in Milan in 1896 by Monsignor Giuseppe Tovini, and was named after Saint Ambrose, the fourth century archbishop of the city. Tovini's purpose was to create a Catholic bank as a counter-balance to Italy's "lay" banks, and its goals were "serving moral organisations, pious works, and religious bodies set up for charitable aims." The bank came to be known as the "priests' bank"; one chairman was Franco Ratti, nephew to Pope Pius XI. In the 1960s the bank began to expand its business, opening a holding company in Luxembourg in 1963 which came to be known as Banco Ambrosiano Holding. This was under the direction of Carlo Canesi, then a senior manager, and from 1965 chairman.

Related Topics:
Milan - 1896 - Giuseppe Tovini - Saint Ambrose - Archbishop - Franco Ratti - Pius XI - Luxembourg - Carlo Canesi

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In 1947 Canesi had brought Roberto Calvi into Ambrosiano. In 1971 Calvi became general manager, and in 1975 he was appointed chairman. Calvi expanded Ambrosiano's interests further; these included creating a number of off-shore companies in the Bahamas and South America; a controlling interest in the Banca Cattolica del Veneto; and funds for the publishing house Rizzoli to finance the Corriere della Sera newspaper (giving Calvi control behind the scenes for the benefit of his associates in the P2 masonic lodge. Calvi also involved the Istituto per le Opere di Religione, the Vatican Bank in his dealings, and was close to Bishop Paul Marcinkus, the bank's chairman. Ambrosiano also provided funds for political parties in Italy, and both the Somoza dictatorship in Nicaragua and its Sandinista opposition. There are also rumours that it provided money for Solidarity in Poland.

Related Topics:
Roberto Calvi - 1971 - Banca Cattolica del Veneto - Rizzoli - Corriere della Sera - P2 - Masonic lodge - Istituto per le Opere di Religione - Paul Marcinkus - Somoza - Nicaragua - Sandinista - Solidarity - Poland

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Calvi used his complex network of overseas banks and companies to move money out of Italy, to inflate share prices, and to secure massive unsecured loans. In 1978 the Bank of Italy produced a report on Ambrosiano that predicted future disaster and led to criminal investigations. However, soon afterwards the investigating Milanese magistrate, Emilio Alessandrini, was killed by a left-wing terrorist group, while the Bank of Italy official who superintended the inspection, Mario Sarcinelli, found himself imprisoned on charges that were later dismissed.

Related Topics:
1978 - Bank of Italy - Emilio Alessandrini - Mario Sarcinelli

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In 1981 police raided the office of P2 Grandmaster Licio Gelli, and found further evidence against Calvi. Calvi was imprisoned, put on trial, and sentenced to four years in jail. However, he was released pending an appeal, and he kept his position at the bank. Other alarming developments followed: Carlo De Benedetti of Olivetti bought into the bank and became deputy chairman, only to leave two months later after receiving Mafia threats and lack of co-operation from Calvi. His replacement, a longtime employee named Roberto Rosone, was wounded in a Mafia shooting incident.

Related Topics:
1981 - P2 - Licio Gelli - Carlo De Benedetti - Olivetti - Mafia - Roberto Rosone

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In 1982 it was discovered that the bank could not account for $1,287 million. Calvi fled the country on a false passport, and Rosone arranged for the Bank of Italy to take over. Calvi's personal secretary, Graziella Corrocher, left a note denouncing Calvi before jumping from her office window to her death. Calvi himself was found hanging from Blackfriars Bridge in London on June 18.

Related Topics:
1982 - Graziella Corrocher - Blackfriars Bridge - London

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During July, funds to the off-shore interests were cut off, leading to their collapse, and in August the bank was replaced by the Nuovo Banco Ambrosiano under Giovanni Bazoli. There was much argument about who should take responsiblity for losses incurred by the Old Ambrosiano's off-shore companies, and the Vatican eventually agreed to pay out a substantial sum without accepting liability.

Related Topics:
Nuovo Banco Ambrosiano - Giovanni Bazoli

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Journalist David Yallop believes that Calvi, with the assistance of P2, may have been responsible for the untimely death of Albino Luciani, who, as Pope John Paul I, was planning a reform of Vatican finances.

Related Topics:
David Yallop - Albino Luciani - Pope John Paul I

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