Vatican Restructures Scandal-Hit Bank, Vows Transparency
The Vatican on Wednesday said it would separate its bank's investment business from its Church payments work to try to clean up after years of scandal, and vowed to become a "model of financial transparency". French businessman Jean-Baptise de Franssu was named as the new head of the bank, officially known as the Institute for Works of Religion (IOR), succeeding German lawyer Ernst Von Freyberg, who has run the bank since February 2013.
The Vatican on Wednesday said it would separate its bank's investment business from its Church payments work to try to clean up after years of scandal, and vowed to become a "model of financial transparency". Australian Cardinal George Pell, head of the Vatican's recently formed Secretariat for the Economy, told a news conference that the move was necessary in order for his department to "exercise its responsibilities of economic control and vigilance" over all Vatican departments.
Child abuse allegations have rocked the Catholic Church in recent years. And the Vatican bank - which handles church funds - is also being cleaned-up. The accounts of more than 2,000 clients have been blocked and 3,000 "customer relationships" ended. The clean-up has almost wiped out profit at the bank - officially known as the Institute for Works of Religion. In 2012 it made almost 87 million euros, last year the figure was less than 3 million.
One of the world's biggest accounting firms, Ernst & Young says it is hiring 50,000 new employees this year and another 60,000 next year. CEO, Mark Weinberger spoke to Reuters Axel Threlfall about the companies recruitment plans and how to achieve sustainable growth.
A panel of UK lawmakers will next week grill representatives from Google Inc and its auditor, Ernst & Young, following a Reuters report that highlighted inconsistencies in Google's statements about its UK activities. In the meantime, Facebook is planning to buy Waze.
The Vatican bank is facing a possible money-laundering scandal after it emerged JP Morgan was closing one of its accounts due to a lack of information about the source of deposits, Italian newspapers report.
Visitors to the Vatican should come prepared - with lots of cash. Italy has blocked the use of credit and debit cards in the tiny city state. Rome's concerned about a lack of financial transparency there. The move is a blow for the Holy See, as sales of souvenirs, stamps and admission tickets to people visiting attractions like the Sistine Chapel is one of its biggest sources of income. In 2011, 5 million visitors brought in over 91 million euros.
Castlight Health, a provider of cloud-based software that enables companies to gain control over their health care costs, listed its IPO on the NYSE on Friday. Its shares were trading around $40 mid-morning, well above its $16 issue price. CEO Giovanni M. Colella says the company hopes to increase price transparency in the American healthcare system, which still faces multiple challenges in terms of equal access. TheStreet's Jane Searle reports from the NYSE.