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Insolvency

Banco Ambrosiano's banking subsidiaries were placed into the receivership of the Banca d'Italia. Nuovo Banco Ambrosiano was created to succeed the bank

Successor Nuovo Banco Ambrosiano

Founded 1896

Defunct 1982

Headquarters Milan

Key people

Giuseppe Tovini Founder Roberto Calvi
Roberto Calvi
Chairman

Products Retail banking Commercial banking Investment banking Investment management Private equity

Subsidiaries Ambrosiano Overseas Banco Ambrosiano
Banco Ambrosiano
Holding

Banco Ambrosiano
Banco Ambrosiano
was an Italian bank that collapsed in 1982. At the centre of the bank's failure was its chairman, Roberto Calvi
Roberto Calvi
and his membership in the illegal Masonic Lodge
Masonic Lodge
Propaganda Due
Propaganda Due
(aka P2). The Institute for the Works of Religion, commonly known as the Vatican Bank, was Banco Ambrosiano's main shareholder. The Vatican Bank
Vatican Bank
was also accused of funneling covert United States funds to Solidarity and the Contras
Contras
through Banco Ambrosiano.

Contents

1 Members 2 Before 1981 3 After 1981 4 Clearstream
Clearstream
scandal 5 Falklands war involvement 6 Roberto Calvi's 1982 murder 7 See also 8 References 9 Bibliography 10 External links

Members[edit]

Roberto Calvi.

Franco Ratti, chairman. Carlo Canesi, senior manager then chairman of Banco Ambrosiano
Banco Ambrosiano
Holding starting from 1965. Roberto Calvi, general manager of Banco Ambrosiano
Banco Ambrosiano
since 1971, appointed chairman from 1975 to his death in June 1982. He was often referred to as "God's Banker" because of his close financial ties with the Vatican. Paul Marcinkus, president of Vatican Bank
Vatican Bank
(aka "Istituto per le Opere di Religione"), had been a director of Ambrosiano Overseas, based in Nassau, Bahamas. Carlo De Benedetti
Carlo De Benedetti
became deputy-chairman for less than two months, after Roberto Calvi's trial. Nuovo Banco Ambrosiano is under Giovanni Bazoli. Carlos Guido Natal Coda, head of the Argentine branch of Banco Ambrosiano (Coda was the predecessor of Emilio Massera
Emilio Massera
as Commander-in-Chief of the Argentine Navy).[1]

Before 1981[edit] The Banco Ambrosiano
Banco Ambrosiano
was founded in Milan
Milan
in 1896 by Giuseppe Tovini, a Catholic advocate in Valle Camonica, and was named after Saint Ambrose, the fourth century archbishop of the city. Tovini's purpose was to create a Catholic bank as a counterbalance 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
Luxembourg
in 1963 which came to be known as Banco Ambrosiano
Banco Ambrosiano
Holding. This was under the direction of Carlo Canesi, then a senior manager, and from 1965 chairman. In 1967, Canesi brought Roberto Calvi
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 Vatican Bank, Istituto per le Opere di Religione, in his dealings, and was close to Bishop Paul Marcinkus, the bank's chairman. Ambrosiano also provided funds for political parties in Italy, and for both the Somoza
Somoza
dictatorship in Nicaragua
Nicaragua
and its Sandinista opposition. There are also rumours that it provided money for Solidarity in Poland
Poland
(it has been widely alleged that the Vatican Bank
Vatican Bank
funded Solidarity). 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
Italy
produced a report on Ambrosiano that predicted future disaster and led to criminal investigations. However, soon afterward the investigating Milanese magistrate, Alessandrini, was killed by a left-wing terrorist group, while the Bank of Italy
Italy
official who superintended the inspection, Mario Sarcinelli, found himself imprisoned on charges that were later dismissed. After 1981[edit] In 1981, police raided the office of Propaganda Due
Propaganda Due
Masonic lodge
Masonic lodge
to apprehend the Worshipful Master
Worshipful Master
Licio Gelli
Licio Gelli
and uncover further evidence against Roberto Calvi. Calvi was arrested, put on trial, and sentenced to four years in prison. However, he was released pending an appeal and retained his position at the bank. Other alarming developments followed: Carlo de Benedetti of Olivetti
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. The criminal organization responsible for this shooting was the Banda della Magliana (Magliana Gang) which had taken over Rome's underworld in the late 1970s, and has been related to various political events of the anni di piombo (years of lead). In 1982, it was discovered that the bank was unable to account for $1.287 billion (equivalent to $3.26 billion in present-day terms). Calvi fled the country on a false passport, and Rosone arranged for the Bank of Italy
Italy
to take over. Calvi's personal secretary, Graziella Corrocher, left a note denouncing Calvi before leaping to her death from her office window. Calvi's body was found hanging from Blackfriars Bridge
Blackfriars Bridge
in London
London
on June 18 (see death of Roberto Calvi). During July 1982, 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. Pope John Paul II pledged full transparency regarding the bank's links to the Vatican and brought in lay bankers including German financial expert Hermann Abs, a move that was publicly criticized by Simon Wiesenthal, due to Abs' role as top banker to the Third Reich
Third Reich
from 1938 to 1945.[2][3] There was much argument over who should take responsibility 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. In April 1992, Carlo De Benedetti, former deputy chairman of Banco Ambrosiano, and 32 other people were convicted of fraud by a Milan court in connection with the bank's collapse.[4] Benedetti was sentenced to six years and four months in prison,[4] but the sentence was overturned in April 1998 by the Court of Cassation.[5] In 1994, former Socialist Prime Minister Bettino Craxi
Bettino Craxi
was indicted in the Banco Ambrosiano
Banco Ambrosiano
case, along with Licio Gelli, head of Propaganda Due, and former Justice minister Claudio Martelli.[6] In April 1998, the Court of Cassation confirmed a 12-year sentence for Licio Gelli for the Ambrosiano crash.[7] Clearstream
Clearstream
scandal[edit] Further information: Clearstream Just before the media revealed the Ambrosiano scandal, Gérard Soisson, manager of transaction clearing company Clearstream, was found dead in Corsica, two months after Ernest Backes's dismissal from Clearstream
Clearstream
in May 1983. Banco Ambrosiano
Banco Ambrosiano
was one of the many banks to have un-published accounts in Clearstream. Backes, formerly the third highest-ranking officer of Clearstream
Clearstream
and a primary source for Denis Robert's book on Clearstream's scandal, Revelation$, claims he "was fired because (he) knew too much about the Ambrosiano scandal. When Soisson died, the Ambrosiano affair wasn't yet known as a scandal. (After it was revealed) I realized that Soisson and I had been at the crossroads. We moved all those transactions known later in the scandal to Lima
Lima
and other branches. Nobody even knew there was a Banco Ambrosiano branch in Lima
Lima
and other South American countries."[8] As of 2005, while the Italian justice has opened up again the investigation concerning the murder of Roberto Calvi, Ambrosiano's chairman, it has asked the support of Ernest Backes, and will investigate Gerard Soisson's death, according to Lucy Komisar. Licio Gelli, headmaster of P2 masonic lodge, and mafioso Giuseppe "Pippo" Calò, are being prosecuted for the assassination of Roberto Calvi. Falklands war involvement[edit] France denied deliveries of Exocet
Exocet
AM39 missiles purchased by Peru to avoid the possibility of Peru giving them to Argentina, because they knew that payment would be made with a credit card from the Central Bank of Peru, but British intelligence had detected that the guarantee was a deposit of two hundred million dollars from the Banco Ambrosiano Andino, an owned subsidiary of the Banco Ambrosiano.[9][10] Roberto Calvi's 1982 murder[edit] David Yallop believes that Calvi, with the assistance of P2, may have been responsible for the death of Albino Luciani
Albino Luciani
who, as Pope John Paul I, was planning a reform of Vatican finances. This is one of many conspiracy theories about Luciani, who died of a heart attack. However, Calvi's family maintains that he was an honest man manipulated by others. Their perspective informs Robert Hutchison's 1997 book Their Kingdom Come: Inside the Secret World of Opus Dei. According to the magistrates who indicted Licio Gelli, P2's headmaster, and Giuseppe Calò
Giuseppe Calò
for Calvi's murder, Gelli would have ordered his death to punish him for embezzlement of his and the mafia's money, while the mafia wanted to stop him from revealing the way Calvi helped it in money laundering. See also[edit]

Banda della Magliana The Bankers of God: The Calvi Affair

References[edit]

^ Susana Viau and Eduardo Tagliaferro, Carlos Bartffeld, Mason y Amigo de Massera, Fue Embajador en Yugoslavia Cuando Se Vendieron Armas a Croacia - En el mismo barco, Pagina 12, December 14, 1998 (in Spanish) ^ JTA. [1] "Expert Appointed by Vatican to Probe Bank Scandal Said to Be an Ex-Nazi" ^ https://www.nytimes.com/1982/11/27/business/pope-vows-to-assist-bank-study.html ^ a b (in English) "Court Convicts Financier, 23 Others in Billion-Dollar Failure of Italian Bank," Rocky Mountain News, April 17, 1992 ^ "High court overturns conviction of Olivetti
Olivetti
chairman in bank collapse," Associated Press, April 22, 1998 (in English) ^ "Former Italian premier indicted in bank scandal", The Tampa Tribune, May 13, 1994 (in English) ^ "Top Italian fugitive Licio Gelli
Licio Gelli
arrested in France," Associated Press, September 10, 1998 (in English) ^ "hound-dogs.com". hound-dogs.com. Archived from the original on July 9, 2007.  ^ "The Official History of the Falklands Campaign: War and diplomacy". google.com.  ^ "Página/12 :: El país :: A las Malvinas en subte". pagina12.com.ar. 

Bibliography[edit]

Rupert Cornwell, God's Banker: The Life and Death of Roberto Calvi, Victor Gollancz Ltd, 1984. Malachi Martin
Malachi Martin
- Rich Church, Poor Church (Putnam, New York, 1984) ISBN 0-399-12906-5 David Yallop, In God's Name: An Investigation into the Murder of Pope John Paul I, Corgi, 1987 Philip Willan, The Last Supper: the Mafia, the Masons and the Killing of Roberto Calvi, Constable & Robinson, 2007(ISBN 978-1-84529-296-6) Sandom, J.G., Gospel Truths, Bantam/Random House, 1992 & 2009 (ISBN 0553589970)

External links[edit]

Lucy Komisar about "Revelation$" by Denis Roberts & Ernest Backes Links to several newsarticles about the scandal "Gelli arrest is another chapter in sordid Vatican bank scandal". American Atheists. 1998-09-16. Archived from the original on September 4, 2005. 

v t e

Corporate scandals

South Sea Company
South Sea Company
(1720) Panic of 1890 (Baring crisis) (1890) Salad Oil (1963) Banco Ambrosiano
Banco Ambrosiano
(1982) Carrian Group (1983) Guinness (1986) Polly Peck (1990) Bank of Credit and Commerce International
Bank of Credit and Commerce International
(1990) Metallgesellschaft (1993) Barings Bank
Barings Bank
(1995) Sumitomo Corporation (1996) Archer Daniels Midland (1997) Long-Term Capital Management
Long-Term Capital Management
(2000) One.Tel
One.Tel
(2001) Enron (2001) Adelphia (2002) WorldCom
WorldCom
(2002) Tyco (2004) Bayou Hedge Fund Group (2005) Société Générale (2008) Bear Stearns (2008) Libor (2008–2012) Anglo Irish Bank (2008–2011) Volkswagen emissions scandal
Volkswagen emissions scandal
(2008-ongoing) Satyam (2009) Olympus (2011) OCZ
OCZ
(2012-2013) Forex (2013–) Tesco
Tesco
(2014) Toshiba
Toshiba
(2015) Target Australia
Target Australia
(2016) Wells Fargo account fraud scandal
Wells Fargo account fraud scandal
(2016-ongoing) Daewoo Shipbuilding & Marine Engineering (2016)

See also A

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