God's Banker
GOD'S BANKER
The Life and Death of Roberto Calvi Rupert Cornwell
The death in London by hanging of one of Italy's leading bankers, Roberto Calvi, focused the world's attention upon the affairs of the Banco Ambrosiano, a bank closely involved in Vatican finance. This bank, which Calvi had devoted his career to building up, was under heavy investigation at the time of his death, and Calvi himself had been charged with fraud and the illegal transfer, or misappropriation, of funds running into millions.
Following Calvi's macabre downfall, the Banco Ambrosiano collapsed, exposing the darker face of Italy, its financial and political intrigue, sinister secret societies, intimidation, blackmail and murder. The Ambrosiano affair shook the international banking system. It helped to expose years of reckless financial behaviour by the Vatican, calling into question the judgement of the Pope himself. Aspects of the affair have still not been explained: some probably never will be. But the broad outline of what happened is now clear.
After intensive research, including interviews with leading figures in the Italian financial world, with Cavi's family and associates in the United States and with bankers in the capitals of Europe, Rupert Cornwell, the Financial Times Rome correspondent, has been able to unravel the complex story of Roberto Calvi and his world, and to piece together this amazing chronicle of financial malpractice in high places.
For this Counterpoint edition he has up-dated and expanded the final chapters to take account of the latest developments in this extraordinary story.
GOD'S BANKER
Epimenides the Cretan said: all Cretans are liars. Was he telling the truth or a lie?
Euboulides, Greek Philospher, 4th Century b.c.
. . . Fare che diventasse per sempre - non piu una burla, no; ma una realta, la realta di una vera pazzia: qua, tutti mascherati, e la sala del trono, e questi quattro miei consiglieri; segreti, e - s'intende - traditori.
(. . . So that it might be no longer a joke; but a reality for ever, the reality of true madness. Here, in the throne room, with everyone masked; and these four secret advisors of mine - naturally traitors all.)
Pirandello, Henry IV.
Rupert Cornwell
The Life and Death of
ROBERTO CALVI
COUNTERPOINT
London UNWIN PAPERBACKS
Boston Sydney
First published in Great Britain by Victor Gollancz Ltd 1983
First published in Unwin Paperbacks 1984
This book is copyright under the Berne Convention. No reproduction without permission. All rights reserved.
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© Rupert Cornwell 1983,1984
Condition of Sale. This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, re-sold, hired out or otherwise circulated, without the Publishers' prior consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the purchaser.
To Angela
isbn 0 04 332099 6
Printed in Great Britain by Guernsey Press Co. Ltd, Guernsey, Channel Islands
ACKNOWLEDGEMENTS
This book is drawn from three main sources: my own experiences and recollections as correspondent of the Financial Times in Italy, during the events described in the last two thirds of it; the work of colleagues in the Italian and foreign press—an irreplaceable support for the journalist everywhere; and direct interviews with and documentary assistance from many of those involved with the story of Roberto Calvi and Banco Ambrosiano. Numerous people have given their time to help with the book's preparation. I am deeply grateful to all of them, especially those who would have preferred not to discuss a subject they would best like to forget. Many of them too have specifically asked not to be mentioned; and obviously I must respect their confidence. For that reason I will mention none of them, as a partial list of thanks might only be misleading.
Those to whom I can express gratitude include my paper for allowing me to take a sabbatical at the ideal moment, as well as friends on its staff who gave hospitality and help. They include Duncan Campbell-Smith in London, Reggie Dale in Washington, Paul Betts in New York and Nikki Kelly in the Bahamas. In Italy, I would take the opportunity of acknowledging my debt to the excellent book already published on the Ambrosiano affair, II Banco Paga, by Leo Sisti and Gianfranco Modolo. Some of the other published works from which I have drawn are referred to in footnotes. Then I must thank Professor Luigi Spaventa, who kindly read the manuscript and made valuable suggestions and caught potentially embarrassing mistakes. Similar thanks, for similar reasons, go to Mary Venturini, my colleague in Rome, James Buxton, and to George Armstrong. A special affectionate word must be kept for Nicoletta Rosati, our secretary in the Financial Times Office in Rome. She not only typed out two thirds of the
manuscript, but also produced some precious and, she will not mind
my saying, very Roman insights into an uncommonly complicated tale.
This book is an effort to provide a reconstruction that is at least understandable. Inevitably however, I will have made errors. I apologize for them in advance, offering in my defence only the observation that the book has been written in good faith—not the most conspicuous quality in the Calvi story.
Finally a brief note about the currencies referred to throughout the book. To avoid unmanageable strings of noughts, I have used the American billion in preference to thousands of millions, where the Italian lira is concerned. Between 1970 and 1982, the value of the pound varied between a low of around 1,400 lire and a peak of about 2,400 lire. The simplest, if rather rough, average conversion rate would perhaps be 2,000 lire. The lira/dollar rate has risen even more sharply. Between 1970 and 1975 the dollar stayed within the range of 580 to 680 lire. In 1976 it jumped at one stage to 900 lire. Over the next three years the rate declined to 780 lire. But from 1980, the dollar began an ascent which was showing no sign of abating during the time of writing. By early June 1983, it had passed the 1,500 lire mark.
Rupert Cornwell
CONTENTS
Some of the Cast 14
Introduction 19
The Beginning 27
Sindona 36
Freemasonry 44
Vatican 51
Empire Building 59
Defence 68
Rizzoli 74
Revenge 80
Inspection 86
The Bank of Italy Affair 98
New Ploys 108
Messages from Licia 118
Corriere 129
Prison and Trial 138
Letters of Patronage 146
The Man from Olivetti 155
The Last Illusions 163
Carboni and Flight 174
Week of Fire 185
Death in London 193
Clearing up the Mess 206
Aftermath 217
Vatican Disarray 225
The Vatican and the Money 231
Epilogue 238
Conclusions Appendix Index
Some of The Cast
Andreatta, Beniamino: Born 1928. Professor of Economy at Bologna University. Since 1976 a senator for the Christian Democrat party. Named Budget Minister August 1979. Between October 1980 and November 1982 Minister of the Treasury. He ordered the liquidation of Banco Ambrosiano.
Andreotti, Giulio: Born 1919. A Christian Democrat member of Parliament since Italy became a Republic. Many times Minister, including five terms as Prime Minister, in 1972 and 1973, and from July 1976 to August 1979. On
e of Italy's most experienced politicians, and famous for the aphorism Il potere logora chi non ce I'ha—"Power wears out those who don't have it."
Baffi, Paolo: Born 1911. Entered Bank of Italy in 1936. Head of Research department, then general manager, and Governor between 1975 and September 1979. He ordered the inspection of Banco Ambrosiano in 1978.
Bagnasco, Orazio: Born 1927. Financier active in property-based mutual funds. Since 1980 owner of the CIGA chain of luxury hotels. Deputy chairman of Banco Ambrosiano from January 1982 until the end.
Bazoli, Giovanni: Born 1932. Deputy chairman of Banca San Paolo di Brescia. In August 1982 named the first chairman of Nuovo Banco Ambrosiano, which took over the Italian parts of the old Banco Ambrosiano group.
Bonomi, Carlo: Born 1940. Financier, chairman of Invest Spa, the family holding company. The Bonomi group, then headed by Anna Bonomi Bolchini, mother of Carlo, was between 1973 and 1975 associated with some of the dealings of Roberto Calvi.
Botta, Giacomo: Senior official in the foreign department of Banco Ambrosiano. Until 1981 director of Banco Ambrosiano Andino in Lima. Since 1981 in charge of foreign business at head office in Milan.
Calvi, Roberto: Born 1920, died 1982, after career of some 35 years at Banco Ambrosiano. Named general manager in 1971, deputy chairman and managing director from 1974, and chairman from November 1975 until his death. Chairman of La Centrale since 1976. Chairman of Banco Ambrosiano Holding Luxembourg and of Banco Ambrosiano Overseas, Nassau. He was a member of the P-2 freemasons' lodge from 1975 or 1976, or perhaps earlier.
Canesi, Carlo: Died 1981. Chairman of Banco Ambrosiano from 1965 until 1971. He took on Calvi at the bank, and helped shape his early career.
Carboni, Flavio: Sardinian property contractor, with a wide variety of contacts. Met Calvi in August 1981. Influential on Calvi during the last ten months of his life, and organized the flight to London in June 1982.
Carli, Guido: Born 1914. Governor of the Bank of Italy 1960 to 1975. He was instrumental in the downfall of Sindona. Chairman of Con- findustria, Italian employers association between 1976 and 1980.
Ciampi, Carlo: Born 1920. Spent career entirely within Bank of Italy. Deputy general manager 1976, general manager 1978. Appointed Governor of the Bank of Italy in September 1979. His intensifying pressure led to the exposure of Calvi's fraud in 1982.
Craxi, Bettino: Born 1934. Since 1968 member of parliament representing Italian Socialist Party. Since 1976, leader of the party.
Cuccia, Enrico: Managing director of Mediobanca in Milan from 1946 until his retirement in 1982. A determined enemy of both Sindona and Calvi.
De Benedetti, Carlo: Born 1934. Since 1978 deputy chairman and chief executive of Olivetti. Between November 1981 and January 1982 deputy chairman of Banco Ambrosiano, and a fierce critic of the methods of Roberto Calvi during his brief stay at the bank.
Di Donna, Leonardo: Born 1932. Between 1976 and 1982 a director of ENI, the Italian state-owned energy group. Together with Florio Fiorini, for part of the period finance director of ENI, he arranged substantial loans for the foreign subsidiaries of Banco Ambrosiano between 1978 and 1981. Listed as a member of the P-2 freemasons' lodge.
Gelli, Lido: Born 1919. Grandmaster of the P-2 freemasons' lodge until its discovery and dissolution in 1981. A powerful influence on Calvi in the later stages of his career. Arrested in Geneva, September 1982.
La Malfa, Ugo: Died 1979. A founder of the modern Italian republic and leader of the Italian Republican party until his death. Many times Minister, Treasury Minister in 1973 and 1974, and a fierce opponent of both Sindona and Calvi.
Leemans, Michel: Born 1938. A Belgian, with wide international financial experience. Since 1974 at La Centrale, the holding company for the Italian interests of the Ambrosiano group, and until August 1982 its managing director. He conducted the final talks with the IOR, the Vatican bank, to try and save Ambrosiano in June 1982.
Leoni, Filippo: Born 1940. In charge of foreign division of Banco Ambrosiano for much of the period before the bank's collapse in 1982. Between 1979 and 1981 chairman of Banco Andino. A director of Banco Ambrosiano Holding of Luxembourg, and from 1981 joint general manager of Banco Ambrosiano, Milan.
Marcinkus, Paul: Born 1922 at Chicago, Illinois. Left to study canon law in Rome, 1950. Chairman of the Istituto per le Opere di Religione (IOR), the Vatican bank, since 1971. Pro-President, or "mayor", of the Vatican City State since 1981.
Mennini, Luigi: Born 1911. Managing director of the IOR. His son, Alessandro, was an executive in the foreign department of Banco Ambrosiano.
Milan Magistrates: Giuliano Turone, Gherardo Colombo, Luca Muc- ci, Gerardo d'Ambrosio, Pierluigi dell'Osso and others. They conducted the frequently overlapping investigations of the bankruptcies of first Michele Sindona and then Calvi.
Ortolani, Umberto: Perhaps Gelli's closest associate in the P-2. Instrumental in bringing the Rizzoli publishing group within the orbit of the secret lodge. Proprietor of Banco Financeiro Sudamericano (Bafisud) in Uruguay, in which Ambrosiano Overseas of Nassau held an interest.
Pazienza, Francesco: Born 1946. Business consultant, with links to Italy's former secret services, certain politicians, and figures in US public life. Closely involved with Calvi from 1981. He tried to form the consortium which would rescue Banco Ambrosiano.
Pesenti, Carlo: Born 1907. Financier of long-standing Catholic connections. He also had a close business relationship with the Ambrosiano group. In March 1982 he became Banco Ambrosiano's largest declared shareholder, and was appointed a director.
Rizzoli, Angelo: Born 1943. Since 1978 chairman of Rizzoli publishing group, which bought the Corriere della Sera newspaper in 1974. From 1975 his companies were heavily reliant on loans from Banco Ambrosiano. He was named as a member of the P-2 in 1981.
Rosone, Roberto: Born 1928. Spent his entire career at Banco Ambrosiano, mostly on the domestic side. From 1981, general manager and deputy chairman. He proposed placing the bank in the hands of the Bank of Italy in June 1982.
Rossi, Guido: Born 1931. Named as chairman of the Consob, the Milan stock market regulatory authority in 1981. He forced Banco Ambrosiano to be quoted on the main market. Resigned from the Consob in August 1982.
Sarcinelli, Mario: Born 1934. Entered Bank of Italy in 1957. In 1976 he was appointed a deputy general manager, in which capacity he superintended the inspection of Banco Ambrosiano in 1978. Briefly imprisoned during the "Bank of Italy affair" in 1979. All charges against him were dismissed and he was reinstated in 1980. Since 1982 director general of the Italian Treasury Ministry.
Siegenthaler, Pierre: A Swiss citizen, he was president of Banco Ambrosiano Overseas of Nassau from its inception in 1971, and as such closely involved with the foreign operations of Calvi.
Sindona, Michele: Born 1920. A financier, and an early mentor of Calvi, then partner with him in many deals. Declared bankrupt in 1974 and convicted of fraud and perjury in 1980 by a Manhattan Court. Currently in jail in the US. His name appeared in the membership lists of the P-2.
Tassan Din, Bruno: Born 1942. Entered the Rizzoli group in the early 1970s, to become general manager and then managing director. The financial strategist of Rizzoli, he negotiated with Calvi the sale of 40 per cent of Rizzoli to La Centrale in 1981. His name featured on the lists of P-2 members found in March 1981.
CHAPTER ONE Introduction
War, sport and scandal. Italy's general public hardly knew which way to turn in the summer of 1982. Down on the edge of the world in the South Atlantic, Britain was recapturing the Falklands capital of Port Stanley, to put an end to a conflict which had divided and discomforted Italy. The country had been torn between a natural sense of obligation to support an old European friend whose sovereign rights were being challenged, and its instinctive sympathies for Argentina, nearly half of whose population is of Italian extraction. Much closer to home, in Vigo in North-Western Spain, the national football team was unimpressively beginning its own campaign
, that would culminate in world cup victory just four weeks later.
But something else was stealing up on Italy, which in the months ahead would overshadow memories of the battlefields of the South Atlantic and the playing fields of Spain.
On the evening of Saturday June 12, the main television news bulletins gave prominence to a most curious occurrence: two days earlier Roberto Calvi, chairman of Banco Ambrosiano, Italy's most important privately owned bank, had disappeared without word from his flat in central Rome. In most instances the temporary absence of a leading financier or industrialist, even if unexplained, would hardly be a matter of immense public concern. Roberto Calvi was, however, no ordinary financier, nor his bank an ordinary bank. For several years, and despite an outward appearance of soundness, Banco Ambrosiano and its chairman had been the object of suspicion and dark rumours.
Since the previous summer he had been without a passport after conviction and sentence to a four-year prison term for serious breaches of currency law. Calvi only remained at liberty pending an oft-postponed appeal, but due at last to be heard on June 21. Magistrates in Rome and his home city of Milan were investigating others of his turbid financial involvements.
Calvi had emerged as a member of the sinister P-2 freemasons' lodge, discovered in 1981 and swiftly outlawed as a threat to the security of the State. Nor was that all. By the time of Calvi's disappearance, many in authority in Rome, and in the know in Milan, were well aware that the court cases, the P-2 and the gossip were but symptoms of a deeper illness at Ambrosiano.
Small wonder that the Italian government was watching the affair intently, and that on that June Saturday Giovanni Spadolini, the Prime Minister, observed publicly that the vanishing act was "an extremely serious event". Just how serious, however, not even he can have imagined.
Within a week of those words, Calvi was dead; and perhaps the most disastrous bank collapse anywhere since the Second World War had been set in motion. In the absence of the newspapers, halted for a strike, it was left to the radio to make known the scarcely credible; Calvi, carrying a falsified passport, his pockets stuffed with foreign banknotes and weighed down with stones, had been found hanging under a bridge, far away in London.