From The Guardian, reporting on a story in the Italian newspaper La Repubblica:
A potentially explosive report has linked the resignation of Pope Benedict XVI to the discovery of a network of gay prelates in the Vatican, some of whom – the report said – were being blackmailed by outsiders.
...
The paper said the pope had taken the decision on 17 December that he was going to resign – the day he received a dossier compiled by three cardinals delegated to look into the so-called "Vatileaks" affair.
...
The newspaper said the cardinals described a number of factions, including one whose members were "united by sexual orientation". In an apparent quotation from the report, La Repubblica said some Vatican officials had been subject to "external influence" from laymen with whom they had links of a "worldly nature". The paper said this was a clear reference to blackmail.
http://www.guardian.co.uk/...
The "Vatileaks" scandal began last May when the Pope's personal butler was arrested and charged with leaking salacious Vatican correspondence. The Vatican selected 3 cardinals to investigate the matter, and the report on their findings was delivered the same day Benedict decided to resign, according to La Repubblica.
A spokesperson for the Pope would neither confirm nor deny the story. And the 300-page Vatileaks report has been locked in a vault until the next Pope arrives. The 54,000 lira question, to my mind, is whether Pope Benedict himself was somehow coerced into retirement.
Here is a link to the original La Repubblica article:
http://www.repubblica.it/...
(now the correct link! h/t robcat2075)