Italy's financial police are seizing $102 million worth of assets from Bank of America Corp. and a unit of Dexia SA as part of a probe into an alleged derivatives fraud in the southern region of Apulia.

Police are investigating losses on derivatives linked to the sale of about $1.2 billion worth of bonds sold by the regional government in 2003 and 2004, according to an e-mail Wednesday from the prosecutor's office in Bari.

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