Banco Ambrosiano was the 'priests' bank' — its chairman was found hanged under a bridge

Banco Ambrosiano was founded in 1896 by Giuseppe Tovini as a Catholic bank, intended to serve 'moral organisations, pious works, and religious bodies set up for charitable aims.' The Vatican's Institute for the Works of Religion (the Vatican Bank) was its main shareholder. For decades it was known as 'the priests' bank,' a pillar of Catholic finance in Italy.

Under chairman Roberto Calvi, who took control in 1975, the bank became entangled in a complex web of fraud. Calvi used a network of overseas shell companies to move money out of Italy, inflate share prices, and secure massive unsecured loans. The bank's operations were tied to the Propaganda Due (P2) masonic lodge led by Licio Gelli, the Mafia, and the Vatican Bank. The Bank of Italy produced a report in 1978 predicting disaster, leading to criminal investigations.

In 1981, police raided the P2 lodge and uncovered evidence against Calvi. He was sentenced to four years in prison but released pending appeal. By 1982, the bank could not account for $1.287 billion — equivalent to roughly $3.5 billion today. Calvi fled Italy on a false passport. On 18 June 1982, his body was found hanging from Blackfriars Bridge in London, weighed down with bricks and cash. His secretary, Graziella Corrocher, had earlier leaped to her death from her office window, leaving a note denouncing Calvi.

The bank was taken over by the Bank of Italy and replaced by Nuovo Banco Ambrosiano in August 1982. The Vatican eventually paid a substantial sum without accepting legal liability. Licio Gelli was later sentenced to 12 years for his role in the collapse. Calvi's murder remains one of the most mysterious unsolved financial crimes of the 20th century.