MONEY: The Rush to Repay

Ordinarily, bankers keep their charges for borrowing in lockstep with those of rival lenders. But when the Chase Manhattan Bank initiated the latest round of interest-rate reductions two weeks ago, other bankers grumbled that it was too much too soon. The Chase sliced its prime rate by a fat ½%, from 5¾% to 5¼%. It was the tenth drop in the prime since June 1969, when it was at an alltime high of 8½%, and the eighth reduction in the past four months. Instead of going along as usual, other bankers reluctantly lowered their prime rates by only half as...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!