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To: Stitch who wrote (359)	5/17/1998 9:09:00 AM
From: tom pope	Read Replies (2) \| Respond to of 2025

I don't know how Lawrence sees ML as benefitting from disintermediation - I would think that the development of net based brokerages has created a situation where they are being disintermediated against, in that area at least. But he's making an important point - disintermediation has been the driving force in the revolution in financial markets over the past quarter century. Up until the early seventies commercial banks had a virtual monopoly on access to money markets - the classic example being the Eurodollar market - banks take in money of varying maturities and lend it out at a spread. The disintermediation occurred with corporations' discovery that they could issue commercial paper directly, thus marginalizing banks in the short-term lending arena. Another example may be the trend (if it's not too early to call it a trend) of corporations to issue stock to the public directly. In sum, if the financial landscape is so different today (and banks' sources of income so different from 20 years ago) disintermediation was the driver. Just some Sunday morning pedantry. Stitch - re the proper placing of prepositions - do you know the one about Churchill receiving an observation from a civil servant about a misplaced preposition in a draft of a speech he had penned - "This is insufferable cheek, up with which I will not put"