A few months ago I read with mild amusement Spain's totally insolvent bank, Bankia, making a futile attempt to lure young depositors with a free Spiderman beach towel. We all know that over 50% of Spain's youth is unemployed so they probably need a beach towel. If I was hopelessly unemployed, I'd be sitting my butt on the beach eyeing off equally hopelessly unemployed members of the opposite sex and Spanish ladies are (*ahem*) rather aesthetic. Pity the unemployed haven't got the cash to deposit to buy a beach towel from Bankia.
As Broke Bankia Runs Out Of Toasters, It Has A Bold Solution: A Spiderman Beach Towel
Ay, Bankia, nos reimos para no llorar
Nationalised Spanish lender Bankia is offering a Spiderman towel to young investors as part of a drive to hold onto deposits after being taken over by the state in the biggest bank rescue in Spain’s history.
The bank, which holds around 10 percent of Spanish deposits, is offering the prize to youngsters if they manage to save 300 euros ($380) by the end of the month. For every 50 euros saved, account holders can enter a draw for a trip to New York.
The drive to push up deposits comes as competitors such as online bank ING Direct embark on aggressive advertising campaigns to poach accounts after a report of a deposit run in early May after the state takeover was announced.
Deposit flight from Spanish banks smashes record in July
Spain has suffered the worst haemorrhaging of bank deposits since the launch of the euro, losing funds equal to 7pc of GDP in a single month.Spain isn't Greece, it's economy is 5x bigger. It's too big to save and too big to fail without creating a global financial crisis, never before seen or managed.
Data from the European Central Bank shows that outflows from Spanish commercial banks reached €74bn (£59bn) in July, twice the previous monthly record. This brings the total deposit loss over the past year to 10.9pc, replicating the pattern seen in Greece as the crisis spread.
Economy secretary Fernando Jimenez Latorre said Spain is in the eye of the storm right now with the “worst falls” in economic output yet to come in the second half of the year.
No Jimmy, not the eye, the leading edge.