Last week, Italian monetary authorities impounded $30 million from the Vatican bank and placed its 2 top officers under investigation in connection with a money-laundering inquiry, the NYTimes reported.  The Vatican issued a statement expressing “perplexity and surprise” that the bank’s chairman, Ettore Gotti Tedeschi, and its director general, Paolo Cipriani, had been placed under investigation.  It added that it had the “greatest trust” in the two men and that it had been working for greater transparency in its finances. 

The investigation is the first into the Vatican bank since the early 1980s, when it was implicated in the collapse of an Italian bank whose chairman, nicknamed “God’s banker,” was mysteriously found dead, hanging from Blackfriars Bridge in London.  Italian authorities have historically shied away from investigating the Vatican’s finances - owing as much to a sense of deference to the church as to the complex relationship between Italy and the Holy See, a sovereign state.   [NYT Dealbook, 9/22],