The 67-year-old Italian was brought in by the pope’s secretary of state, Cardinal Tarcisio Bertone, in 2009 with a mandate to turn the troubled bank around and help “facilitate transparency” with an eye toward quashing rumors that the bank was a den of iniquity. The Vatican had hoped that through Gotti Tedeschi’s guidance, the tiny city-state could finally earn a coveted spot on the global Financial Action Task Force “white list” of states whose financial practices can be trusted.

A week after his ouster, Gotti Tedeschi was in trouble again. His home in Piacenza and his offices in Milan were searched by Italian police, who say they were combing for evidence that he was an “informed witness” with regard to questionable business dealings of Italy’s state-run defense and aerospace firm Finmeccanica, whose president is his close pal. He has not been arrested, nor is he officially under investigation, and the police say the Finmeccanica inquiry is a separate affair not at all related to his problems with the Vatican bank. But in searching his property, investigators reportedly found a treasure trove that could link the Vatican to all sorts of shady dealings and underworld characters. And the Vatican top brass desperately want to get their hands on it, sternly warning Italian police that because the Vatican is a “sovereign nation” their documents are protected under immunity, even if they are found during a criminal probe outside its borders. “The Holy See is surprised and concerned at the recent events that Professor Gotti Tedeschi is involved with,” said a Vatican statement issued Friday. “We have faith that the prosecutors and Italian judicial system will respect our sovereignty—recognized internationally—with regard to these documents.”

What they are reportedly worried about is a secret dossier that Gotti Tedeschi told friends he compiled “just in case something happens to me.” Local press reports say the dossier includes 47 different binders with emails from the pope, letters from cardinals, and notes and reports from various meetings tied to Vatican bank business. He had reportedly planned to deliver the dossier directly to Pope Benedict XVI, presumably as a counterargument to his May 24 firing. The cache reportedly contains irrefutable evidence that could substantiate claims that the IOR is involved in money laundering and tax-evasive practices. There were documents that allegedly show financial transactions between the Vatican and a number of surprising characters, including politicians and known middlemen for mafia bosses. If true, it would give Italian authorities a rare opening to investigate the Vatican’s banking practices with names, account numbers, and transaction dates of dealings with financial entities outside the Vatican’s historically secretive jurisdiction. 

READ MORE: http://www.thedailybeast.com/articles/2012/06/10/vatican-banker-run...