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According to most theories of financial intermediation, intermediaries diversify risk, transform maturity or liquidity, and screen or monitor borrowers. In U.S. Treasury auctions, none of these rationales apply. Intermediaries submit their customer bids without transforming liquidity or maturity, and they do not screen and monitor borrowers or diversify fiscal policy risk. Yet, most end investors place their Treasury auction bids through an intermediary rather than submit them directly.doi:10.2139/ssrn.2597152 fatcat:dac4ahsghbgipliavfeejp5dqa