Emigrant Savings Bank is Paying 4%

Emigrant Savings Bank is paying 4% interest. Just last week they were only paying 3.50%. Banks like Emigrant are going to suck deposits out of big mortgage underwriters like Washington Mutual, Bank of America, Wachovia, Indy Mac and others. These banks will then be forced to raise their own deposit rates, which in turn necessitates that mortgage rates also be raised in order for the banks to be able to turn a meaningful profit.