Sometimes the financial market can surprise even the most experienced traders. There are stories with such an intricately woven plot that can be easily adapted for a Hollywood blockbuster. Here is one of them. Reportedly, a lot of investors across the globe have been buying bonds backed by a notorious mafia in Italy for four years.
The report said that market participants bought €1 billion in private bonds backed by companies working for the Ndrangheta mafia between 2015 and 2019. Curiously enough, relatively small private companies and major European banks were among the investors. For instance, Banca Generali also purchased stocks secured by assets of the Calabrian Ndrangheta through the front companies. High demand for bonds provided a high yield. This is why investors bought those stocks without a moment of hesitation.
The Ndrangheta has taken hundreds of small autonomous clans under its wing. The syndicate is engaged in large-scale production and sale of drugs, money laundering, racketeering, and weapons smuggling. It even managed to hoodwink some large banks and traders who unknowingly invested big sums of money in its activity. According to Europol, the Ndrangheta's illegal income totals €44 billion a year. Recently, the Italian police undertook one of the most extensive law enforcement operations sending 3,000 special forces soldiers and carabinieri paratroopers to detain members of the Ndrangheta.
