Are loan costs tied to CD rates? [Bankrate.com]

Dr. Don at Bankrate answers the question if it's a federal law that banks cannot lend at an interest rate that is more than 2 percent above its CD yield. According to Dr. Don:

I've seen references to "criminal usury limits" at rates of 25 percent to 30 percent, but nothing about loan rates being tied to the CD rates offered by a financial institution.

Dr. Don didn't mentioned the new FDIC rate caps which are intended for banks that are less than well capitalized.