VATICAN CITY, July 4 (Reuters) - A preliminary inquiry by the Vatican bank after the arrest of a Vatican prelate on suspicion of trying to smuggle huge sums of money into Italy from Switzerland found "clear failings" at the institution, a source close to the bank said on Thursday.
The board of the bank, formally known as the Institute for Works of Religion (IOR), held a meeting on Thursday that also addressed the shock resignation of its two top managers on Monday. The meeting had not been made public.
At the meeting Ernst von Freyberg, the bank's German president, told the other four board members of the preliminary results of an internal investigation. It discovered "clear failings that should serve as stark reminder of the urgency of improving the IOR's processes," Freyberg told the board, the senior source told Reuters.