Old home town – 25 years ago today

Several major American banks, led by Chase Manhattan, raised their prime lending rates to a stunning 20 percent, matching the peak set the past spring when the nation’s economy plunged into a recession. Meanwhile, the city of Lawrence raised the maximum interest rate for home loans from 11 to 12 percent for a planned $15 million in mortgage revenue bonds in an effort to help make the bonds more attractive to potential home-buyers.