Posts Tagged “cashflow”

Saint Patricks Cathedral in New York - NYC - USA - panoramioFallout from the worldwide Catholic clerical abuse scandal continues raining down all over the place. The latest example comes from New York City, whose archdiocese wants to borrow money to improve their cashflow, as Reuters reports, which has been choked due to payouts to abuse victims (WebCite cached article):

The Roman Catholic Archdiocese of New York is seeking permission for a $100 million mortgage on some of its valuable Manhattan property to fund its compensation program for people sexually abused by its priests, a spokesman said on Wednesday.

The archdiocese said last October it would compensate people who had accused priests of abusing them as children, including those prevented by statutes of limitations from filing civil lawsuits. It said at the time it would seek loans to fund the payouts, which are being decided by two independent arbitrators.

On Monday, the archdiocese filed a petition in New York state court in Manhattan seeking approval for a one-year mortgage from JPMorgan Chase on land it owns behind St. Patrick’s Cathedral; the Lotte New York Palace hotel is located on the site. The petition was necessary under a New York law governing the use of church property, Joseph Zwilling, an archdiocese spokesman, said in a telephone interview.

“Because we have begun the process of paying out the compensation to victims, the archdiocese has taken this short-term loan to cover the payments,” Zwilling said.

As Reuters explains, the archdiocese is also soliciting claims by abusers who haven’t come forward yet, which may well add to their liabilities. That’s laudable, as such, but really, it’s the least they could do at this point. As with almost every other diocese on the planet, they spent years, and maybe decades, covering for abusive clergy and effectively enabling the abuse by continuing to grant abusers access to children, even in cases when they were known abusers.

It’s widely assumed that Catholic dioceses are wealthy … and nearly all of them are. But in many cases, their wealth is tied up in real estate, and while it has value, it’s not cash in the bank that they can write checks against. Hence, tactics like this, borrowing against their real estate. But I can’t say I’m sympathetic. As I said, this scandal was decades in the making and was fuelled by depraved and amoral hierarchs who put the reputation of their precious Church above everything else — even the welfare of children in its care. Disgusting.

Photo credit: Wikimedia Commons.

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