ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Thursday, March 27, 1997 TAG: 9703270028
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
Big banks boost their prime rate
The nation's largest banks Wednesday boosted their prime lending rates to 8.5 percent from 8.25 percent, responding to the Federal Reserve's increase Tuesday to the benchmark overnight lending rate.
Virginia's statewide banks also adopted the higher rate. It was effective Wednesday at Central Fidelity, Crestar, NationsBank, First Union, First Virginia and Signet banks.
Among the money-center banks setting new prime rates were Chase Manhattan Corp., Pittsburgh-based PNC Bank, J.P. Morgan & Co. subsidiary Morgan Guaranty Trust Co., First Chicago NBD Corp., Bank of Boston Corp., Bankers Trust New York Corp. and Mellon Bank Corp.
In doing so, the banks pass the higher cost of funds to their customers. An increase in the prime rate, the yardstick against which consumer and corporate loans are measured, means borrowers with adjustable-rate or prime-linked loans can expect to see a 0.25 percent increase in the annual percentage rate they pay on credit card, car or home equity loans.
-BLOOMBERG NEWS
Mine operators given no-fault report period
ARLINGTON - Federal mining officials are offering coal companies a chance to admit to old injuries and illnesses without fear of penalties.
The U.S. Mine Safety and Health Administration hopes the grace period will encourage mine operators to report previously undisclosed occupational illnesses, such as silicosis, among their workers. The move is part of the agency's attempt to better combat such diseases.
J. Davitt McAteer, assistant secretary of labor for MSHA, said the agency's data on such illnesses is woefully incomplete, making it tough to come up with adequate safety measures to prevent them.
-ASSOCIATED PRESS
MCI to build computer network to connect 34,000 post offices
WASHINGTON - MCI Communications Corp. said Wednesday it has won a multimillion-dollar contract to build a computer network for the U.S. Postal Service in a deal worth up to $3 billion over 11 years.
A Postal Service spokesman said the network will allow postal clerks to give customers more timely information about letters and packages, among other benefits.
The contract guarantees MCI $100 million in the first five years, but the projected cost of connecting the 34,000 locations during that time exceeds $1.4 billion. Renewal options would include additional revenue of hundreds of millions of dollars.
-WASHINGTON POST
Briefly...
Signet Banking Corp. said Wednesday it wants to sell its corporate-trust business because it would cost too much to keep it competitive. The Richmond-based bank said the business is making money, but the growth rate is below strategic targets.
U.S. and most foreign financial markets will be closed Friday in observance of Good Friday. The Roanoke Times will not publish the Daily Market Report and other financial tables Saturday. Regular publication will resume Tuesday.
LENGTH: Medium: 64 linesby CNB