Several banks cut 'prime' in response to Fed move

Several major banks cut their prime rate from 12 percent to 111/2 percent after Friday's credit-easing move by the Federal Reserve Board. Chase Manhattan led the move, immediately followed by Chemical Bank. Other major banks, including Citibank, First National Bank of Chicago, and Bankers Trust, joined in the move.

The reductions followed the Fed's long-awaited cut in the discount rate Friday, from 9 1/2 percent to 9 percent.