More from Bloomberg:
The financial fraud uncovered by the Italian prosecutors in Potenza includes two checks issued through HSBC Holdings Plc in London for 205,000 pounds ($325,000), checks that weren’t backed by available funds, the prosecutors said. As part of the probe, fake bonds for $2 billion were also seized in Rome.As a reminder, total US debt in circulation is just over $10 trillion. So if the allegedly "fake" bonds were sufficiently threatening to put international financial stability at risk, just what is going on here?
HSBC spokesman Patrick Humphris in London declined to comment when contacted by telephone.
Phony U.S. securities have been seized in Italy before and there were at least three cases in 2009. Italian police seized phony U.S. Treasury bonds with a face value of $116 billion in August of 2009 and $134 billion of similar securities in June of that year.
The U.S. Secret Service averages about 100 cases a year related to bonds and other fictitious instruments.
Some more from the BBC:
US officials confirmed that the bonds were counterfeit.Here is what the bonds look like:
Fake US securities have been seized in Italy before and there were at least three cases in 2009.
But this case is on a different scale to previous investigations as the fake bonds have a value equivalent to almost half of the entire US debt pile.
"Everything began with an investigation into mafia clans in the Vulture-Melfese area in the southern Basilicata region," said Giovanni Colangelo, the head of the prosecutor's office in Potenza.
And here is where they were kept:
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