Prime rate hits 14 1/2% at big New York banks
Four of the nation's five biggest banks raised their prime leanding rates to 14 1/2 percent from 14 percent, despite recent protests from the Carter administration that rates were already too high. Morgan Guaranty Trust Company, Citibank, Chase Manhattan, Manufacturers Hanover, and almost a dozen other major banks raised their rates, and industry observers felt that No. 1 Bank of America , based on the West Coast, also would go along. The move reflects the rapidly escalating costs of borrowing in the country's money markets.