The following comes from an Aug. 14 posting on the online version of Fortune magazine.
The new pope wanted to talk about money. That was the message that went out to a group of seven prominent financiers—major Catholics all—from around the world in the summer of 2013. Barely five months after the shocking resignation of Pope Benedict XVI, Pope Francis had summoned them to assemble at the seat of holy power, the Vatican. They knew their general assignment: to create a plan to restructure the Vatican’s scandal-plagued finances. And like Catholics everywhere, they knew that Francis had already signaled that he was a new kind of pontiff, a “people’s pope” who championed charity and tolerance over dogma. Still, they didn’t know what to expect when they arrived at the Vatican for a meeting with the pope on the first Saturday in August. How interested was he in finance, really? And how serious was he about changing business as usual inside the Vatican?
A major hint came from a change in tradition upon their arrival: The visitors didn’t report to the Apostolic Palace, the Renaissance showplace where for centuries past popes had received visitors in high style. Instead they entered Vatican City on the other side of the colonnade of St. Peter’s Square and took a 150-yard stroll through the hilly enclave to the new pope’s place of business—Casa Santa Marta, a five-story limestone guesthouse that could be mistaken for a newish hotel. There they were ushered into a nondescript meeting room on the first floor with no paintings or religious ornaments and took their seats around a conference table. The members—including Jean-Baptiste de Franssu, ex-chief of asset-management giant Invesco in Europe; Jochen Messemer, a top executive at ERGO, a large German insurer; and George Yeo, former foreign minister of Singapore—chatted nervously as they waited.
After 15 minutes, Pope Francis entered the room—and got right down to business. Attired in a simple white cassock and plain metal cross, he took his place standing at the head of the table. With little preamble, he began outlining his strategic vision, in an approach described by one participant as “highly managerial.” Speaking in fluent Italian and taking frequent pauses while a translator repeated his words in English, the pope explained to the group that for his spiritual message to be credible, the Vatican’s finances must be credible as well. After centuries of secrecy and intrigue, it was time to open the books to the faithful. Strict rules and protocols must be adopted to end the cycle of scandals that had plagued the Vatican in recent years.
Francis declared that sound financial management was a pillar of his greatest mission: aiding the poor and underprivileged. That mission was endangered by volatile, unpredictable budgets that careened from modest surpluses to steep deficits. The Vatican’s inept practices had inhibited giving, he explained, and had to stop. “When the administration is fat, it’s unhealthy,” he said. Francis wanted a leaner, more efficient Vatican administration that would be solidly “self-sustaining.” That, he said, would free up more money for his charities. “You are the experts,” the pope said, “and I trust you. Now I want solutions to these problems, and I want them as soon as possible.” With that, Francis left the group to figure out the details.
There was no ambiguity about the job ahead. “The Holy Father’s message was crystal clear: ‘Let us make money to go to the poor,’” recalls Joseph Zahra, chief of the panel, a pontifical commission known by its acronym, COSEA. Zahra, a former chairman of the Bank of Valletta, Malta’s largest bank, says of Francis: “In finances, he’s not a micromanager but an inspirational leader.”
….Indeed, Francis has brought in some of the biggest brand names in the world of business. KPMG is implementing uniform, internationally accepted accounting standards to replace the Vatican’s previous crazy quilt of bookkeeping. EY (the former Ernst & Young) is scrutinizing management of the Vatican’s stores, utilities, and other municipal services. Deloitte & Touche now audits the accounts at the Vatican bank. And Spencer Stuart has recruited top management talent from around the globe. Heading the effort to restructure media operations, assisted by McKinsey & Co., is Lord Christopher Patten, a former head of the BBC and the last British governor of Hong Kong.
When Pope Francis puts a cardinal in charge of something, the choice is typically an outsider. His most important appointment so far, either lay or religious, is Cardinal George Pell, an Australian whom he recruited from the archdiocese of Sydney. Pell now heads the newly formed Secretariat for the Economy, and Pope Francis has granted Pell power over finances that no official has remotely held before. He’s responsible for setting and enforcing all budgets and managing all investments. The son of a heavyweight boxer, Pell, 73, is an imposing figure who is short on niceties and brutally frank about the necessity to radically pare costs.
….The pontiff does not talk about balance sheets and cash flow. He leaves the numbers to the experts. His forte is leadership. Like any good chief executive, he knows that the culture of an organization is established at the top. And he is always well prepared. “He has five or six sources of information on every subject,” says Austen Ivereigh, author of a forthcoming biography of Francis, The Great Reformer. “It’s impossible to hoodwink him.” By getting the views of many participants—both Vatican officials and lay advisers—in all of his reform initiatives, the pope quickly determines if his instructions are being implemented or blocked by the old guard. If he sees resistance from old-school directors, he’ll quickly make changes, as when he replaced the entire board of the AIF, the financial regulator.
One of his rules is that big donors and companies that do business with the church should get no special treatment. Before he took charge in Buenos Aires, the archdiocese was a large shareholder in Argentine banks, and the banks regularly granted their ecclesiastical investor loans on easy terms. As cardinal, Francis denounced the arrangement as a blatant conflict of interest and sold all the archdiocese’s bank holdings. He also refused to attend fundraising dinners, usually regarded as one of a cardinal’s top jobs. His aversion to catering to the wealthy didn’t stop with his ascension to the papacy. It’s a Vatican tradition that the Secretariat of State, which receives donations from the rich on the pontiff’s behalf, would reward big donors by arranging special audiences and masses with the pope. Pope Francis ended the practice.
….For 2013 the Holy See posted revenues of $315 million and expenses of $348 million, for a $33 million deficit. Since 2007 the total shortfalls have totaled $56 million. Those figures actually understate the size of the Holy See’s financial problems. The current spending number is due to rise sharply for a pressing need: taming big pension liabilities. It’s a problem the Vatican shares with virtually every Western economy. The Vatican inaugurated a generous defined-benefit pension plan in the early 1960s but didn’t have an actual pension fund until three decades later.
….The pope’s strategy for addressing both spending and pension issues is to gradually shrink the Vatican workforce through attrition and raise more money to maintain the benefits. In February of 2014 he imposed a hiring freeze and also stopped formerly generous overtime payments. The plan is to move existing employees from overstaffed congregations to growth areas, such as financial management, without replacing those who depart.
….The other major problem facing the Holy See is that its revenues from investments—almost half of its total—are unpredictable, and returns are far lower than they should be. The Holy See does own one reliable source of profits, the Vatican bank, or IOR. The IOR (for, in Italian, Institute for Religious Works) regularly provides around $70 million toward operating revenues. Perhaps the most surprising feature of the Vatican’s finances is the extremely modest size of its portfolio of stocks, bonds, and real estate. The seed money for the Vatican’s investments came from a $92 million settlement the Italian government provided in 1929, in compensation for its confiscation of the Papal States, covering much of central Italy, 60 years earlier.
….To turn the Vatican into a consistent profitmaker, the new regime is counting on two institutions with the potential for big growth in earnings: the museums and the Vatican bank. “Those are the two main income sources for the future,” says Zahra, the Maltese adviser to the Vatican.
….Pell meets with Pope Francis once every two weeks at Casa Santa Marta to brief him on the progress being made by their handpicked team of financial experts. He describes the pope as a good example of the “old-style Jesuit” who “knows which way is up” and asks the right questions. To serve his higher calling as a pope of the people, Francis knows, he must continue to keep one eye on the bottom line.
To read the entire story, click here.
Pope Francis seems to have different attitudes and opinions than those of other recent popes. The above article states, “…who [Pope Francis] championed charity and tolerance over dogma.” Certainly, the Pope should champion charity, but when he states that he champions “tolerance over dogma,” I wonder how closely he will defend the Magisterium and dogma. Previously he said he didn’t think people protesting in front of abortion clinics was important and that he couldn’t judge homosexuals. These statements seem to be in opposition to long held beliefs of the Church hierarchy and those in the pews. I am concerned.
Its a start to clean up inside the Vatican. How about energy devoted to cleaning up Same Sex attraction inside the Vatican and throughout the world.
Amen, Joe.
.
Pope Francis seems to be taking important steps in the correct direction in the financial sphere. He needs to push that down to the Bishops in the Dioceses and Pastors in the Parishes.
Yes, he needs to defend Dogma. However, correct, complete and clear financial reporting is not Dogma.
No longer should Diocesan Chancellors be able to decline any disclosure of financial information since ‘the laity would not understand’ That attitude is condescending and insulting.
Pope Francis is the Vicar of Christ, an apostle from the succession of apostles into the Papacy. Our Lord knows what He is doing. As Catholics, faithful Catholics, we will stand in obedience and humility to our Holy Father. Pray for our dear Pope Francis and Holy Mother Church.
Our Lord knows what he is doing, but Francis doesn’t
AMEN SandraD
Reflection John 15…..
You should be concerned Sarah, this man will lead many astray its happened before, he attacks faithful Catholics who really try and live the Faith and uphold the Church’s teachings. However those who are true enemies of the Church ie Christ he believes in dialogue and being pastoral. We have had bad Popes before.
Canisius he is not a bad Pope. May God have mercy on you and forgive you. May He let you see the error of your ways. If only humility and a meek heart meet up with you.
May God have mercy on us all. Let us pray for the Pope that he corresponds fully to the call of grace like we all must. As to the rest, time and fruits will tell.
This has man in his short time on the Throne of Peter has caused more confusion. BTW it is not a sin to call a Pope bad, I base this on a number of things. 1) His crushing of the Friars of the Immaculate 2) His constant insults of those who attend the TLM 3) His recent reinstating of the marxist priest Father Miguel D’Escoto, This is man who basically said that Fidel Castro is an instrument of the Holy Spirit. Yes men like this are reinstated to the priesthood but the entire faithful order of the Immaculate is being destroyed. Also this Pope said he knows many good Marxist, mind you this is a violently anti-Christ philosophy. Do you think the hundred Catholics murdered by Marxist in years past think this, Francis is pathetic old man who needs to resign for the good of the Church
Watch his appointments. For the most part they are TERRIBLE!
May God have mercy on an amoral Amerikca and His Church!
Viva Cristo Rey!
Yours in Their Hearts,
Kenneth M. Fisher
Your suggestion that we watch his appointments is a good guide. Personnel always speaks louder about strategy and mission than verbal comments. That is true in any organization, business or church. I do not, however, think that most of his appointment are terrible. He may be taking us in a new direction in which you may which he didn’t.
We, mere mortals, do not question God and His Divine Providence…..for we are not God who knows all and why. Be very careful with your exhortations on this.
I did not exhort I merely stated the facts of what this Pope has done.
Caniusis it sounds like you are looking for every opportunity to see this Pope fail. I don’t find you just in this area. I’m sorry you feel that way. Take it up to God, God loves His children and will correct them. But your venting is only scandalous and when you approach other sinners to help bring them towards conversion, you need to lead by example through humility and not scandalous words of division. Just like I trust that he will correct what we all need correction with. We belong to Him, He called us by name. This Pope, whether you like it or not, belongs to Jesus. Just like Adam and Eve, just like you and I. We are all responsible to bring Jesus by our witness not by bitterness and sensualized media reports that only fill your disappointment more. You, yourself said you felt hopeless at times, did you read my posts to you, that perhaps it is a conversion in that needs to happen.
I feel sorry for this tone of schism in people. Its if they look for every opportunity to wish fail on V2. But no they will not because this is Christ’s church and its here to stay! In good times and in bad times…..Remember that we will be hated because Jesus claimed us, we belong to Him and not to this world. So as much as this world see’s and views the Pope and Christ’s church, in the way they want, only our good Lord knows what is in a man’s heart and since this Pope carries the traits of an innocent child, child like, I see that Jesus is there! I see Jesus in this Pope, I may not understand His role there but who am I to sucker punch our Pope with words of venting and insecurities. Its a simplicity that we sinners will not understand because we always think we know better.
Perhaps Abeca I am losing faith, I hear talk but no action, I hear tolerance but no truth, I hear “who i am to judge” while good priestly orders are crush with iron fist. I still see the gay mafia inside the Church corrupt it, and NOTHING IS DONE ABOUT IT… all I hear is talk about being “pastoral” while the NY Archdiocese is about to close Holy Innocents Parish,, I guess I am just tired of the hypocrisy…
Abeca Vatican 2 has failed are you blind to what has been going on for past 50 years my God. The Church in the West is crumbling and the hierarchy pretends everything is OK….
I will continue to keep you in my prayers. I love you dear brother in Christ. I’m so sorry that you feel much pain and feel hurt.
= ) This is Christ’s Church. Go to His holy Word, go to adoration, kneel at His alter. Humble yourself before Him. Just Like He took Pity on me and gave me His answers, there you too will know, But delete all that pride, all that anger, all that disappointment, all those hopeless words. Challenge yourself to persevere with fortitude, for that in itself helps a soul grow more virtuous. Make yourself vulnerable to Him. Don’t wait till you are near death to do so, don’t wait till you are ill or suffering, do it now. You keep looking to men for change, for their promises but you keep neglecting His promises that matter the most and for His church. They are in union with Rome, the Magesterium. Trust in the Lord…..not in men. I know you feel helpless, as do us all who feel scandalized. But use reason, understand mankind’s sinfulness to the degree that God has shown us and what His mercy and forgiveness does too, the devil wants to attack the church and watch it fail, he laughs with joy at your words publicly thrown against the Pope and Christ’s church.
Canius you are wrong my dear brother. You need to surround yourself with faithful Catholics, who are fighting the good fight. Fix your eye’s no our beloved Lord and His promises to us. Jesus, in John 17,
Verse 11And now I will no longer be in the world, but they are in the world, while I am coming to you. Holy Father, keep them in your name that you have given me, so that they may be one just as we are. 12When I was with them I protected them in your name that you gave me, and I guarded them, and none of them was lost except the son of destruction, in order that the scripture might be fulfilled.
You must do your part dear brother, fixing your eye’s on our sweet Lord. Trust that God will keep His promises. I think that most men, might feel helpless especially when most of the time, they want to solve, resolve and conquer, but Jesus already did that for us. That is the road to gaining a meek and humble heart. Ask Jesus to help you understand your “what to do role” in His will. I suggest that you remove yourself from any media bad willed reports about the church for a little while and look for news where they can inspire you and give you hope because there are many faithful who are doing that.
Pray most ardently for this Pope. Your prayers done in charity, in humility will reach heaven much more faster, than anything else. As anger and gossip, travel fast, don’t let it consume you, shut it out, because it will take over you and it will consume you and bring out in you poison. If you take mercy on this Pope, just think how much more mercy Jesus will shed on you. Fast and pray dear brother. Do it for your sins, the more we do it to offer them up for our own sins, the more we will show mercy on other sinners worst off than us. But you must never think ye better than anyone else. But keep your eye’s fixed on Jesus. Reflect on St. Peter, He walked on water but the second he doubted he sunk but what did Jesus do? His divine mercy, He reached out His hand to him and pulled Him back up. He will shed mercy on our Pope and help, just as long as we remain prayerful and merciful too.
I am sorry Abecca I just don’t see it your way, I see a Pope who is accelerating the auto-destruct of the Church…along with the rest of the corrupt, feckless Bishops who sit in their grand residences while the flock flees and souls fall to Hell….
And they call me a heretic!
I have spoken nothing heretical nothing you on the other hand promote mortal sin…I have never done that…
OK dear Brother. I’m sorry that there is a disagreement between us. God bless you and may His mercy and graces always be with us. We need them as you can see. But I know that you do agree in prayer. You are a good soul, I trust that will charitably pray for our Pope still. Lets continue to pray for one another as well. The peace of Christ be with you. Domino, dirige nos. pax vobiscum.
“Anyone who dares to secede from Peter’s solid rock may understand that he has not part or lot in the divine mystery.” (Pope St. Leo I the Great, Doctor of the Church, 445 A.D.)
“He who abandons the See of Peter on which the Church was founded, falsely believes himself to be a part of the Church.” (St. Cyprian)
Sarah read this, praying Schneider is our next Holy Father
https://www.courageouspriest.com/bishop-athanasius-schneider-fourth-great-crisis-church
Fortune magazine is a secular point of view. They seem to be delighted about the direction the Pope is taking in trimming excess from the Vatican financial practices. I’m okay with that. Money, they know. However, the biggest mistake that the writer of their article made was in assuming that Pope Francis was favoring “tolerance over dogma”. They know nothing of either. Our Lord advised us to “watch and to observe, lest we fall into temptation” which is very good advice for us “modern age Catholics”. None of us know anything about the future. That is up to God. He, alone, directs our lives, our future is in His capable hands. We can either be at peace, and simply watch, or fall into the black hole of dissecting every move or statement from Pope Francis as some kind of signal of horrific change. Francis was called to his office as Pope because he has gifts that are needed at this time. As for the Marks of the Church, they remain intact, as they always will. He cannot change those, whether he wants to or not, and the secular press can press him all they want, to no avail. Francis is the Rock right now, and I think he’s pretty immoveable. Let us be at peace, pray for him and Benedict daily. That’s our job. Let him do his.
I agree Life Lady.
Finally, someone who apparently “knows which way is up.” Vatican finances have been a stain on the Church and a scandal for generations and it’s sad to say that the negligence of past Popes is mostly to blame. Time to stop creating scandal.
It is possible that Pope Francis’s major contribution to the church will be the house cleaning that he has started. The dogma will not change. We don’t need to worry about that. When he became Pope the Vatican Bank was a money laundering institution for the favored few. The Secretary of State pushed millions of $ through the system for his friends and special causes. There was no financial control of the various departments. There was really no organizational system. Most importantly, there was no transparency in the finance areas. There was no management of the system. Each department could put out directives without consulting any of the other departments or the “management” group because there was none. Millions of dollars were wasted each year with a big amount of that coming from the U.S. Catholics. It might be good if we concentrate on getting the house in order and not worrying so much about dogma which will not change.
‘ not worrying so much about dogma which will not change.” Yes it will not changed but its never enforced… then what good is it… please no more “pastoral” solutions
This Pope is already doing other good work that is also not getting enough publicity, I’m sure. Since we have no power over what is happening on other parts of the world, we need to fast and remain prayerful. Taking Action fighting the good fight, whether we may or may not always like what is being reported about Christ’s church, His vicar, and His people. We know that we will always have the good and the bad will, with us. Just like we will always have the poor, we are all not any different without Christ’s graces, we are all sinners. If God can put up with those who dissent in any way today, as He gives all sinners time to convert, don’t think we don’t have too either. its our cross here on earth. So it can humble us even more.
Eternal rest grant unto Carmona Valeria, Jose and Antonio Bergoglio and let perpetual light shine upon them. May they rest in peace.
God grant healing to Emanuel Bergoglio through the intercession of Our Lady and St. Joseph and all the Saints.
God comfort Pope Francis and all members of the family and their friends.
Anonymous what’s this about?
Emanuel is the Pope’s nephew who had a car accident in which his wife and two small children were killed. He is in critical condition.
Amen.
Amen
Amen. Such a tragic occurance.