Der Spiegel printed an article revealing that the bank had invested about $826,000 in BAE Systems, a British arms company; $230,000 in Wyeth Pharmaceuticals; and about $1,252,000 in various tobacco companies.
Pax-Bank isn't just owned by Catholics; the bank was originally founded in 1917 to serve the Church and its institutions. On Pax-Bank's website, they describe their commitment to the Church and its values as one of the primary reasons customers should bank with them:
The Church needs excellent performance for their investments that cannot be contrary to their Christian values. Since 1917, Pax-Bank has achieved the balance between high performance and Christian values through its own philosophy: concentrating exclusively on Catholic institutions as its customers, Pax-Bank orientates its business objectives and products following Christian ideals. The entrusted capitals are invested with the Catholic Church in mind, with maximum responsibility and transparency. Investments which contravene Christian principles are excluded. This we guarantee with our name. (Emphasis added.)
Director Winifred Hinzen has publicly apologized for the bank's "mistake" and said that the relevant shares would be sold immediately.
