Jessica Mendoza

For centuries, these indulgences, basically money to reduce punishment in the afterlife, kept cash flowing until the practice ended in the 16th century. The church also made money by taxing the rich Italian farmland it controlled, territory known as the Papal States.

But that business model fell apart in 1870. That's when the armies of Italy wrested Rome from Pope Pius IX. And it wasn't until 1929, under a treaty with Italy, that the Vatican became an independent city-state, occupying 0.2 square miles in the middle of Rome. Without taxes, the new microstate needed other sources of revenue.

But that business model fell apart in 1870. That's when the armies of Italy wrested Rome from Pope Pius IX. And it wasn't until 1929, under a treaty with Italy, that the Vatican became an independent city-state, occupying 0.2 square miles in the middle of Rome. Without taxes, the new microstate needed other sources of revenue.

But that business model fell apart in 1870. That's when the armies of Italy wrested Rome from Pope Pius IX. And it wasn't until 1929, under a treaty with Italy, that the Vatican became an independent city-state, occupying 0.2 square miles in the middle of Rome. Without taxes, the new microstate needed other sources of revenue.

So the Vatican positioned itself as a financial hub, creating its own Vatican Bank. That bank started taking big shares in Italian and European companies. It also started getting mixed up in scandals, including allegations of money smuggling and laundering.

So the Vatican positioned itself as a financial hub, creating its own Vatican Bank. That bank started taking big shares in Italian and European companies. It also started getting mixed up in scandals, including allegations of money smuggling and laundering.

So the Vatican positioned itself as a financial hub, creating its own Vatican Bank. That bank started taking big shares in Italian and European companies. It also started getting mixed up in scandals, including allegations of money smuggling and laundering.

By the early 2000s, the Vatican's money problems had become pretty dire. Benedict XVI, who became pope in 2005, set up a unit to combat money laundering, and the Vatican Bank started releasing annual reports for the first time. But the financial knots proved to be too much.

By the early 2000s, the Vatican's money problems had become pretty dire. Benedict XVI, who became pope in 2005, set up a unit to combat money laundering, and the Vatican Bank started releasing annual reports for the first time. But the financial knots proved to be too much.

By the early 2000s, the Vatican's money problems had become pretty dire. Benedict XVI, who became pope in 2005, set up a unit to combat money laundering, and the Vatican Bank started releasing annual reports for the first time. But the financial knots proved to be too much.

That's, you know, I remember when Benedict stepped down, and I remember what a huge deal it was. I had no idea it had to do with money problems.

That's, you know, I remember when Benedict stepped down, and I remember what a huge deal it was. I had no idea it had to do with money problems.

That's, you know, I remember when Benedict stepped down, and I remember what a huge deal it was. I had no idea it had to do with money problems.

Into this mess stepped Pope Francis.

Into this mess stepped Pope Francis.

Into this mess stepped Pope Francis.

Francis's election in 2013 seemed to represent a new era of reform. He was known for his frugality, having lived through many financial crises in his home country of Argentina. As pope, Francis attempted to modernize the Vatican's bookkeeping. Nuns were still keeping ledgers with pencil and paper. Under his stewardship, the Vatican bank closed thousands of suspect accounts.

Francis's election in 2013 seemed to represent a new era of reform. He was known for his frugality, having lived through many financial crises in his home country of Argentina. As pope, Francis attempted to modernize the Vatican's bookkeeping. Nuns were still keeping ledgers with pencil and paper. Under his stewardship, the Vatican bank closed thousands of suspect accounts.

Francis's election in 2013 seemed to represent a new era of reform. He was known for his frugality, having lived through many financial crises in his home country of Argentina. As pope, Francis attempted to modernize the Vatican's bookkeeping. Nuns were still keeping ledgers with pencil and paper. Under his stewardship, the Vatican bank closed thousands of suspect accounts.

He slashed cardinal salaries. And perhaps the biggest move of all?