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Savings Wars From Italy to Portugal Drive Bank Costs Higher

Spanish fireman Antonio Casado kept 80,000 euros ($110,000) in cash at Banco Popular Espanol SA for a year and was looking for a place to put it. He had no shortage of offers.

The Popular branch manager in Madrid tried to sell him a 10-year subordinated bond paying 8.25 percent, Casado, 41, said in an interview. Other options include commercial paper sold by Bankia SA or two-year Spanish government notes that pay about 4 percent.