Photo ~ Paolo Gabriele, left, is accused of leaking confidential Vatican documents.

Vatican says trust in Church hurt by scandal

(Reuters) - The Vatican, engulfed in the worst crisis in Pope Benedict's papacy, on Monday denied Italian media reports that cardinals were suspects in an investigation into leaks of sensitive documents that led to the arrest of the pope's butler.

But while denying the reports, which said the butler was merely a courier in a behind-the-scenes struggle for power in the Holy See, the Vatican acknowledged that the often sordid affair would test the faith of Catholics in their Church.

The scandal exploded last week when - within a few days - the head of the Vatican's own bank was abruptly dismissed, the butler was arrested over leaks and a book was published alleging conspiracies among cardinals, the "princes of the Church".

Documents leaked to journalists allege corruption in the Church's vast financial dealings with Italian business.

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."

Italian newspapers, quoting other whistle blowers in the Vatican, said the arrested butler was merely a scapegoat doing the bidding of more powerful figures, punished because the Church did not dare implicate cardinals behind the leaks.

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