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To: tom pope who wrote (360)	5/17/1998 4:19:00 PM
From: Frodo Baxter	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. Look again what I said: Merrill Lynch, Charles Schwab, E-Trade... all owe their stunning rise to disintermediation. I was talking history. ML (in its time) was the first at bringing stock trading to the masses. Successive waves of disintermediation were brought about by Schwaby and E-Trade.

To: tom pope who wrote (360)	5/17/1998 5:13:00 PM
From: Stitch	Read Replies (3) \| Respond to of 2025

tom; <<Just some Sunday morning pedantry.>> Pedantry not, but rather pedagogy. Actually your's and Lawrence's remarks are very interesting to me as is the word "disintermediation". I have almost made a consulting practice out of exactly that. The layers of channels that my targeted client base have used to sell their products here in S.E. Asia have been the target for well thought out pruning, reshaping, and er .. uh.. disintermediation, which accounts for much of what I do. I intend to put that word in my curriculum vitae as soon as I have practiced spelling it enough that I can do so on an extemperanous basis. In all seriousness it is the first time I have seen it's use but it does describe a trend that I believe is prevalent in many areas of products and services. The general idea is that things change so fast it is no longer feasible to train and support intermediaries nor is it advisable to charge a third party with the care and feeding of customer bases that, increasingly, are willing to remain loyal provided they get the support and attention they require. I do not know if these are the same drivers as in your and Lawrence's examples but believe it to be true in industrial and technology product markets so why not financial services? Churchill has long been a hero of mine insofar as language and the wit to use it. The remark you mentioned is a particularly delightful one. His reputed remarks to Lady Astor are a standard part of my cocktail story repertoire. Best, Stitch