The Vatican Bank just announced its first foray into equity indexes, laying the groundwork for what could become Catholic-branded ETFs. The indexes will track stocks that are “consistent with Catholic ethical principles.” They are not available for consumers to invest in but they could be in the near future. If you know your Vatican Bank history, you’re probably a bit uncomfortable with this. In the early 1980s, the collapse of Banco Ambrosiano, Italy’s largest private bank at the time, triggered one of Europe’s biggest financial scandals. The Vatican Bank was deeply entangled in that mess through shell companies and complex financial arrangements. The bank’s chairman, Roberto Calvi, was found hanging under London’s Blackfriars Bridge. Billions vanished. The Vatican denied direct responsibility but eventually paid hundreds of millions in settlements. It wasn’t just a scandal, it was a theft from the Italian working class. The economy imploded, causing economic pain that lasted decades. And now, decades later, the same institution wants to brand and curate equity markets under a Catholic “moral” screen. The new indexes, built in partnership with Morningstar, will filter companies through church doctrine, excluding businesses tied to abortion, contraception, gambling, pornography and other activities deemed inconsistent with Catholic teaching. It kind of sounds like ESGs in a Catholic frock with the potential to be very profitable for the church. Skepticism is warranted. The post The Vatican’s Moral Index Fund Gamble appeared first on Redacted.