Cardinal Tarcisio Bertone

Vatican Bank Profits Tumble as Pope Francis Orders an Overhaul

The Vatican bank is housed in the Bastion of Nicholas V in Vatican City. Photo courtesy IOR.

Profits plunged by more than $100 million at the Vatican bank last year after thousands of accounts were shut down in a radical overhaul of the scandal-scarred institution.

In its 2013 annual report released Tuesday, the bank, officially known as the Institute for Religious Works, said its net profit totaled 2.9 million euros ($3.9 million) last year, a dramatic drop from the 86.6 million euros ($117.8 million) it reported in 2012.

The bank said the slump was due to extraordinary expenses, losses related to externally managed investment funds and fluctuations in the price of gold.

Losses included a controversial $20.5 million loan granted to a production company owned by a friend of Cardinal Tarcisio Bertone, the former Vatican secretary of state who has faced criticism for mismanagement as the church’s No. 2 official under retired Pope Benedict XVI.

Vatican Makes Final Preparations for Papal Conclave

The American cardinals aboard the bus to Monday’s General Congregation. Photo courtesy Religion News Service.

As the Vatican prepares for the opening of the conclave today to elect a new pope, officials announced that the personal secretary of former Pope Benedict XVI will return to Rome for the first time since Benedict’s resignation on Feb. 28.

The Vatican’s chief spokesman, the Rev. Federico Lombardi, confirmed on Monday that Gaenswein will be one of the senior Vatican officials to take part in the solemn procession of cardinals into the Sistine Chapel that will open the conclave on Tuesday afternoon.Archbishop Georg Gaenswein, who was Benedict’s closest aide when he was pope, moved with Benedict to the papal summer residence of Castel Gandolfo when the retired pope left the Vatican on Feb. 28.

His presence will once again highlight the unprecedented situation — and potential complications — of having a retired pope still living just as cardinals gather to elect his successor.

Pope Benedict Defends Choice to Resign in Last Public Address

Pope Benedict XVI. RNS photo courtesy Gregory A. Shemitz.

Pope Benedict XVI. RNS photo courtesy Gregory A. Shemitz.

In his final public address, Pope Benedict XVI on Wednesday forcefully defended his decision to resign while trying to reassure Catholics still reeling from the shock of his unprecedented move.

For the first time since his stunning announcement on Feb. 11, the 85-year-old pope explained at length his decision to become the first pope in six centuries to resign. His tenure officially ends Thursday at 8 p.m. local time.

Benedict admitted that his resignation is a “grave” and “novel” act but, he added, his choice had been made “with profound serenity.”

“Loving the church means having the courage to make difficult, agonizing choices, having ever before oneself the good of the church and not one’s own,” he said.

Subscribe