MAJOR U.S. BANKS MOVE TO HIGHER 7-3/4 PCT PRIME
Most major U.S. banks today matched
Tuesday's quarter-point prime rate cuts by Citibank and Chase
Manhattan Bank, the first prime rate boosts since mid-1984.
    Most cited narrower spreads between the prime and funding
costs as justification. Analysts said the prime rate rises may
have been triggered partly by a desire by banks to enhance
profit margins given problems with developing country loans. 
    Commenting on the prime rate increases, U.S. Treasury
Secretary James Baker told a House Appropriations Committee
that "I hope it was a temporary blip upward."
    Among the major banks which today announced prime rate
increases to 7-3/4 pct were Bankers Trust, Chemical Bank,
Continental Illinois National Bank, Harris Trust and Savings
Bank, Irving Trust, Manufacturers Hanover Trust Co, Marine
Midland, and Security Pacific National Bank.
    Other banking companies announcing prime rate rises
included Pittsburgh National Bank, Texas Commerce Bank-Houston,
Provident National Bank, First National Bank of Boston, Florida
Federal Savings and Loan Association, and SunTrust Banks.
 Reuter
