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Vatican in chaos after butler arrested for leaks

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The Vatican's inquisition into the source of leaked documents has yielded its first target with the arrest of the pope's butler, but the investigation is continuing into a scandal that has embarrassed the Holy See by revealing evidence of internal power struggles, intrigue and corruption in the highest levels of the Catholic Church governance.

The tumult began with the publication last weekend of a book of leaked Vatican documents including correspondence, notes and memos to the pope and his private secretary. It peaked with the inglorious ouster on Thursday of the president of the Vatican bank. And it concluded with confirmation Saturday that Pope Benedict XVI's own butler was the alleged mole feeding documents to Italian journalists in an apparent bid to discredit the pontiff's No. 2.

The "Vatileaks" scandal has seriously embarrassed the Vatican at a time when it is trying to show the world financial community that it has turned a page and shed its reputation as a scandal plagued tax haven.

Vatican documents leaked to the media in recent months have undermined that effort, alleging corruption in Vatican finance as well as internal bickering over the Holy See's efforts to comply with international norms to fight money laundering and terror financing.

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