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Bankers reacted to the economy's new look last week by paring the prime interest rate that they charge blue-chip customers. As expected (TIME, Sept. 28), moneymen around the country followed the lead of First Pennsylvania Banking & Trust Co. in trimming the rate from 8% to 7½% . The move could only delight election-bound Republican candidates because a drop in the prime can be cited as a sure sign that the worst of the tight-money squeeze is over...

Author: /time Magazine | Title: Business: Relief | 10/5/1970 | See Source »

...Bank of Portland, Me., and Citizens Bank of Jonesboro, Ark.-in the past two weeks have cut their "prime" loan rate (the minimum charge from which all other rates on business loans scale upward) from 8% to 7½%. Big-city banks are not yet ready to follow, but moneymen are increasingly hopeful that they will do so sometime this fall. Commerce Secretary Maurice Stans at week's end went further to say that he could foresee the prime rate and the yield on corporate bonds dropping to 6% "in the foreseeable future"-although he prudently declined...

Author: /time Magazine | Title: Finance: A Welcome Drop | 9/14/1970 | See Source »

...major mover in the securities markets, Howard Stein is deeply concerned by Wall Street's difficulties. He has brought together, and acts as quarterback for, a group of seven leading moneymen, who travel from many parts of the U.S. to meet regularly, usually at Dreyfus' Manhattan headquarters, to discuss inflation and the economy, the problems of the brokerage business and the future structure of the exchanges. Among the men who attend the four-hour sessions are Thomas Reeves of Investors Diversified Services, Wellington Fund's John Bogle, Mellon Bank's Lloyd Pederson, InterCapital's Fred Stein (no kin), and Kidder...

Author: /time Magazine | Title: Business: Change and Turmoil on Wall Street | 8/24/1970 | See Source »

...from banks and savings and loan associations. Reasons: the Federal Reserve Board has relaxed last year's squeeze on the money supply, and recession-wary consumers have reduced their spending and increased their savings. Still, demands for the limited supply of credit are so great that few moneymen expect mortgage rates to dip much below 8% in the near future. The frustrated home seeker who is waiting for a big drop in interest rates, construction costs or rents is almost sure to be disappointed...

Author: /time Magazine | Title: Business: Housing: The Swing Back to Ticky-Tacky | 8/17/1970 | See Source »

Last week, as moneymen from 50 countries gathered at the Bank for International Settlements in Basel, Switzerland, B.I.S. Chairman Jelle Zijlstra warned in unusually strong language that, by causing a world glut of dollars, the huge U.S. deficits "form the monetary breeding ground for a continuing international inflationary process." If worldwide inflation continues too long, he said, worldwide recession is "inescapable." The B.I.S. annual report added that it is "hard to discern how the U.S. authorities expect, by their own actions, to correct the balance of payments...

Author: /time Magazine | Title: Money: Anger at Dollar Imperialists | 6/22/1970 | See Source »

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