Disintermediation in Banking and Finance is most directly attributed to the massive movements of funds away from Bank investments in the 20th century, due to the Banking Act of 1933 and the Banking Act of 1935, which involved the formation of the Federal Deposit Insurance Company.
The Banking Act of 1933 included a clause called Regulation Q, which established laws that created interest ceilings for all types of deposit accounts at Federally Insured institutions [REF].