The Vatican Bank was accused of funnelling covert United States funds to the Polish trade union Solidarity and to the Nicaraguan Contras through Banco Ambrosiano.

[1] The Banco Ambrosiano was founded in Milan in 1896 by Giuseppe Tovini, a Catholic lawyer and banker from Valle Camonica, and was named after Saint Ambrose, the fourth century archbishop of the city.

[3][4][5][6][7][8][9][a] Calvi used his complex network of overseas banks and companies to move money out of Italy, to inflate share prices, and to secure massive unsecured loans.

Soon afterward the investigating Milanese magistrate, Alessandrini, was killed by a left-wing terrorist group, while the Bank of Italy official who superintended the inspection, Mario Sarcinelli, was imprisoned on charges that were later dismissed.

Carlo de Benedetti of Olivetti bought into the bank and became deputy chairman, only to leave two months later after receiving Mafia threats and a lack of co-operation from Calvi.

During July 1982, funds to the off-shore interests were cut off, leading to their collapse, and in August the bank was replaced by the Nuovo Banco Ambrosiano under Giovanni Bazoli.

[18][19] There was much argument over who should take responsibility for losses incurred by the Old Ambrosiano's off-shore companies, and the Holy See (Vatican) eventually agreed to pay out a substantial sum without accepting liability.

In April 1992, Carlo De Benedetti, former deputy chairman of Banco Ambrosiano, and 32 other people were convicted of fraud by a Milan court in connection with the bank's collapse.

[25][26] An Italian investigation into Propaganda Due's involvement in the arms trade uncovered a contract for 52 Exocets signed by Carlos Alberto Corti, an Argentinian naval officer and member of P2.

[26] David Yallop believes that Calvi, with the assistance of P2, may have been responsible for the death of Albino Luciani who, as Pope John Paul I, was planning a reform of Vatican finances.