Word: depositer
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...fast. The bank prime rate was 8½% as recently as early March, and below 5% in early 1972. Even the official rate of 11½% to 11¾% today understates the real cost of money. Because banks require business borrowers to keep part of their loans on deposit, the effective interest rate on the money that prime-rate borrowers actually get to use is closer to 14%. For many small businessmen without the credentials to get the prime rate, interest charges range up to 15%, 16% or even more-when loans are available...
...they can borrow at the bank prime but the long-term money raised by selling new issues of bonds or stock. But as towering interest rates make bond issues costly, they also depress the stock market by luring money away into such high-yielding investments as bank certificates of deposit. The Dow Jones industrial average last week fell below 800 for the first time in five months and closed at 802.17, down 24% from its January 1973 peak...
...financial troubles of New York's Franklin National Bank (see following story), commercial banks are in no real danger. They have raised their prime rate on business loans as high as 11½%, and they are paying between 11% and 11 ⅜% on large-volume certificates of deposit (CDs) in order to attract funds. But the situation is different at "thrift institutions"-savings and loans and savings banks, which make mostly mortgage loans. Their income is held down by loans made years ago at relatively low interest, so they cannot pay anywhere near as much to attract deposits...
...Milwaukee's slightly shabby West Side, some 90 neighborhood clubs, schools and religious organizations recently formed the West Side Action Coalition, solicited pledges for $1.25 million, then offered to deposit the money in two friendly savings and loan companies; the S & Ls have promised to provide mortgages to West Side borrowers. In Minneapolis-St. Paul, giant Midwest Federal Savings & Loan Association, responding to similar appeals, has agreed to increase its central-city loans from $19 million to $85 million this year. In Boston last month, citizen groups and local banks formed Neighborhood Housing Services, Inc. to secure loans...
...vicious circle of protectionism among countries threatened by huge trade deficits. Last week brought an ominous sign that those pessimists might be right. Without consulting its eight partners in the European Economic Community (Common Market), the Italian government announced that importers of many foreign products would have to deposit half the purchase price with the state bank. The money would be held for six months and then refunded-without interest. With credit tight, the move amounts to a prohibitive 50% surcharge for many importers...