Big banks raise 'prime' in response to Fed move
Several major US banks raised their prime interest rates to 15 3/4 percent Tuesday in response to the Federal Reserve Board's latest move to curb bank lending. Increases in the prime, the interest charged on loans to banks' best corporate customers, were announced by Chase Manhattan, Chemical Bank, and First National of Chicago. Others are expected to follow suit.
The banking industry prime stood at 15 1/2 percent last Friday when the Fed, the nation's central bank, raised the discount rate a full point, to a record 13 percent.