VATICAN CITY, May 28, (Reuters) – The Vatican acknowledged on Monday that the worst crisis in Pope Benedict’s papacy had hurt the faith of Roman Catholics in their Church, but denied any cardinal was a suspect in a deepening scandal over leaked documents.

The scandal exploded last week when, within a few days, the head of the Vatican’s own bank was abruptly dismissed, the pope’s butler was arrested for leaking documents and a book was published alleging conspiracies among the cardinals or “princes of the Church”.

Vatican spokesman Father Federico Lombardi told a news conference: “This is naturally something that can hurt the Church, and put trust in it and the Holy See to the test.”

But Lombardi strongly denied Italian newspaper reports, quoting insiders who had themselves leaked documents, that a cardinal was among those being investigated over the scandal, which has been dubbed “Vatileaks”.

“I categorically deny that any cardinal, Italian or otherwise, is a suspect,” Lombardi said, adding that the pope was being kept fully informed of the case.

“He is aware of a delicate situation that we are living through in the Roman Curia. He continues on his path of serenity, his position of faith and morals that is above the fray.”

Lombardi played down the depth of the scandal, which has caused a frenzy in the Italian press, saying talk that it was linked to an internal power struggle was “exaggerated”.

VATICAN CITY, May 28, (Reuters) – The worst crisis in Pope Benedict’s pontificate deepened on Monday when Italian media said at least one cardinal was among those suspected of leaking sensitive documents as part of a power struggle at the top of the Church.

The scandal exploded last week when within a few days the pope’s butler was arrested for leaking documents, the head of the Vatican’s own bank was abruptly dismissed and a book was published alleging conspiracies among the cardinals or “princes of the Church”.

Newspapers, quoting insiders who had themselves leaked documents, said the arrested butler was merely a scapegoat doing the bidding of more powerful figures in the scandal, which has been dubbed “Vatileaks”.

Documents passed to Italian journalists accuse Vatican insiders of cronyism and corruption in contracts with Italian companies. La Stampa daily quoted one of the alleged leakers as saying the goal was to help the pope root out corruption.

On Saturday, Paolo Gabriele, 46, Pope Benedict’s personal butler, was formally charged with stealing confidential papal documents. But leakers quoted by La Stampa, La Repubblica and other media said the leaking plot went much wider.

“There are leakers among the cardinals but the Secretariat of State could not say that, so they arrested the servant, Paolo, who was only delivering letters on behalf of others,” La Repubblica quoted one alleged whistleblower as saying.

The Secretariat of State is run by Cardinal Tarcisio Bertone, the pope’s powerful right-hand man, and the scandal appears to involve a power struggle between his allies and enemies, reminiscent of Renaissance conspiracies in the Vatican.

VATICAN CITY (Reuters) – The Vatican faces a widening scandal that in one short week has seen Pope Benedict’s butler arrested, the president of its bank unceremoniously dismissed and the publication of a new book alleging conspiracies among cardinals.

It was a poisonous Pentecost Sunday for the pope, who likely had the tumultuous events of the past week on his mind as he celebrated a mass in St Peter’s Basilica on the day regarded as the birthday of the Church.

On Saturday his personal butler, Paolo Gabriele, 46, was formally charged with stealing confidential papal documents in the scandal that has come to be known as “Vatileaks”. Some of the documents allege cronyism and corruption in contracts with Italian companies.

One prominent cardinal, illustrating the growing emotion of the debate in Vatican circles, wrote in an Italian newspaper that the pope had been betrayed just as Jesus was betrayed 2,000 years ago.

The scandal, which has been brewing for months, has hit the very heart of the Roman Catholic Church. Gabriele – now known in Vatican statements as “the defendant” – was until Wednesday night the quiet man who served the pope’s meals, helped him dress and held his umbrella on rainy days.

The pope made no reference during his two public appearances on Sunday to the scandal or the arrest, which aides said had “saddened and pained” him.

“I feel very sad for the pope. This whole thing is such a disservice to the Church,” Carl Anderson, head of the Knights of Columbus charity group who is also a member of the board of the Vatican bank, told Reuters.

VATICAN CITY (Reuters) – A saddened Pope Benedict marked a difficult Pentecost Sunday as the Vatican braced for a possible widening of the scandal that has seen his butler arrested on charges of stealing private documents in the “Vatileaks” affair.

The pope looked weary as he celebrated a mass in St Peter’s Basilica to mark the day when the Church teaches that the Holy Spirit descended on Christ’s apostles, or disciples.

Although the day is regarded as the birthday of the Church, earthly celebration was likely to be far from the minds of the 85-year-old pope and the cardinals who flanked him at the basilica’s papal altar.

On Saturday his personal butler, Paolo Gabriele, 46, was formally charged with stealing confidential papal documents.

The pope made no reference during his two public appearances on Sunday to the scandal or the arrest, which aides said had “saddened and pained” him.

But Cardinal Carlo Maria Martini, the former archbishop of Milan and himself once a candidate for the papacy, seemed to speak for many when he said the scandal should prompt the Church “to urgently win back the trust of the faithful”.

The atmosphere in the walled city-state was glum as Vatican sources said they could not rule out more arrests, particularly if Gabriele named any accomplices.

VATICAN CITY (Reuters) – Paolo Gabriele was always a reserved, almost shy man, as his position required. He had access to the most private rooms in the Vatican’s Apostolic Palace – Pope Benedict’s apartment.

But what could have prompted the pope’s butler, who was formally charged by Vatican magistrates on Saturday with illegal possession of secret documents, to betray the man who trusted him?

Was it money? Probably not.

Gianluigi Nuzzi, the Italian journalist who revealed some of the leaked documents alleging corruption in the Vatican and internal conflict over the role of the Vatican bank, declines to reveal his sources but insists he gave no money to them.

Nuzzi, a respected journalist with a good track record whose book “His Holiness” contains some of the allegations, says those who gave him the documents were devout people “genuinely concerned about the Catholic Church” who wanted to expose corruption.

The 46-year-old Gabriele, facing up to 30 years in prison if convicted, lives in a comfortable apartment in the Vatican with his wife and three children, and is said by all who knew him to be very religious.

While Vatican employees do not receive large salaries, they do enjoy benefits such as low rent, no income tax, and cheap food and petrol at the commissaries of the 108-acre city-state.

VATICAN CITY (Reuters) – Vatican magistrates formally charged Pope Benedict’s butler with illegal possession of secret documents on Saturday and said a wider investigation would take place to see if he had any accomplices who helped him leak them.

Paolo Gabriele is suspected of leaking highly sensitive documents, some alleging cronyism and corruption in Vatican contracts, in a scandal which has come to be known as “Vatileaks”.

A statement referred to Gabriele, 46, who was until his arrest on Wednesday night serving the pope meals and helping him dress, as “the defendant”.

It said a preliminary investigation had been upgraded to a “formal investigation,” meaning he had been formally charged, and had chosen two lawyers to defend him.

Because the Vatican has no jail, Gabriele was being held in one of the three so-called “secure rooms” in the offices of the Vatican’s tiny police force inside the walled city-state.

The Vatican promised that he would have “all the juridical guarantees foreseen by the criminal code of the State of Vatican City.”

The Vatican said the upgraded, formal investigation “would continue “until a sufficient framework of the situation is acquired,” which a Vatican official said meant magistrates wanted to determine if Gabriele acted alone or with others.

VATICAN CITY (Reuters) – Pope Benedict’s butler was arrested on Friday in connection with an investigation into leaks of confidential documents, some alleging cronyism and corruption in Vatican contracts, a senior Vatican source said.

The scandal, which has come to be known as “Vatileaks”, involves the leaking of a string of documents to Italian media in January and February, including personal letters to the pope.

Some of the documents involved allegations of corruption, mismanagement and cronyism in the awarding of contracts for work in the Vatican and internal disagreement on the management of the Vatican bank.

The president of the Vatican bank, Ettore Gotti Tedeschi, was ousted by its board on Thursday.

Vatican spokesmen said earlier on Friday that a person in possession of confidential documents had been arrested but that they could not disclose his position or identity until they were given permission from Vatican investigators.

The Vatican source confirmed reports by Italian media that the person arrested was the butler.

“It’s all very sad,” another senior Vatican source said, commenting on an episode that is the latest in a string of embarrassments for the Vatican.

VATICAN CITY, May 25 (Reuters) – In the type of drama that rarely filters out of the Vatican, the president of its bank has been ousted by a board of external financial experts who voted no confidence in his leadership.

Ettore Gotti Tedeschi, who was shown the door on Thursday night as president of the Vatican bank formally known as the Institute for Works of Religion (IOR), claimed he is a victim of his efforts to make the bank more open.

Gotti Tedeschi told Reuters: “I have paid for my transparency”.

The Vatican denied this, saying he had been ineffective and divisive.

Gotti Tedeschi, a conservative Catholic who once worked for Spain’s Banco Santander, was IOR president since 2009 and is a high-profile figure in Italy.

He wrote editorials about financial ethics for the Vatican newspaper and other publications and often appeared at conferences about business ethics.

A statement said the board moved against him because he “did not carry out functions of primary importance for his office”.

VATICAN CITY (Reuters) – The Vatican, embroiled for months in the so-called “Vatileaks” scandal involving the leak of secret papers, said on Friday its police had detained a person in possession of confidential documents.

A Vatican statement said the person was being questioned by Vatican magistrates, but gave no details. A Vatican source said the person was not a priest.

For much of this year, the Vatican has been at the centre of a scandal involving the leak to Italian media of documents, some of them personal letters to Pope Benedict.

Some of the documents involved allegations of corruption, mismanagement and cronyism in the awarding of contracts for work in the Vatican and internal disagreement on the management of the Vatican bank.

The president of the Vatican bank, Ettore Gotti Tedeschi, was ousted by its board on Thursday.

The pope, who was said to be shocked and saddened by the leaks, ordered several investigations, including one headed by Vatican police and another by a commission of cardinals.

The scandal involves the leaking of a string of sensitive documents to Italian media since the start of the year.

VATICAN CITY, May 24 (Reuters) – The president of the Vatican bank has been ousted by the board of directors, the Vatican said on Thursday, blaming him for a deterioration in standards of governance.

The board unanimously passed a no-confidence vote in Italian Ettore Gotti Tedeschi for failing to carry out “various fundamentally important functions of his office”, the Vatican statement said.

The bank will seek a new president who can “re-establish full and effective relations between the Institute and the financial community, based on mutual respect of internationally accepted banking standards”, it said.

The Vatican bank, founded in 1942 by Pope Pius XII, has been in the spotlight since September 2010 when Italian investigators froze 23 million euros ($33 million) of its funds in Italian banks after opening an investigation into possible money-laundering.

Gotti Tedeschi told Reuters that he had been ousted because the bank did not like his honest way of doing things.

“I don’t want to speak or give interviews, I have paid for my transparency,” he said.

The Vatican recently adopted new financial transparency laws and set up internal regulations to make sure its bank and all other departments adhere to international regulations and standards, and cooperate with foreign authorities.