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disintermediation

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Disintermediation
Withdrawal of funds from a financial_institution in order to invest them directly.

Disintermediation
The act of making a withdrawal from a bank or other financial institution in order to use the funds for investment purposes. For example, one may withdraw $10,000 from his savings account in order to buy a stock without the bank's intermediation. This has become less common with deregulation of banking because more banks can offer investment services, reducing the incentive to withdraw.

disintermediation
The withdrawal of funds from financial intermediaries such as banks, thrifts, and life insurance companies in order to invest directly with ultimate users. Disintermediation was more of a problem when financial intermediaries were limited in the returns they could pay to savers. Deregulation of financial intermediaries was intended to dampen the periodic swings toward disintermediation. Compare intermediation.

disintermediation

The situation that exists when depositors withdraw their savings from financial institutions and invest the money directly in the marketplace,usually because they can obtain a higher yield even though also running a higher risk of losing their money.



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Among the topics are observations on property relations from post-Katrina New Orleans, natural disasters and people with disabilities, participation and disintermediation in a risk society, legislation and criminalization impacting renters displaced by Katrina, and how the new federalism failed Katrina victims.
Racebrook Capital, a private equity firm, was originally founded by Cuticelli in 2004 as a portfolio company of Warburg Pincus to capitalize on increasing prospects of disintermediation in distressed debt and real estate capital markets.
They exposed a lot of disintermediation risk in the industry.
 
 
 
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