The period of relative legal and industry stability that had followed the 1933 legislation thus gave way, beginning in the 1970s, to a nearly 30-year period during which many prevailing restrictions on banks were relaxed.
When I talk about financial innovations, I have in mind several types of developments. A far-reaching set of innovations is the development and increasing popularity of products for the transfer of credit risk. Prominent among such innovations are credit derivatives, asset-backed securities, and secondary-market trading of syndicated loans.