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.
  

