Following the market turbulence of the 1990s financial crises and September 11 attacks on the U.S. in 2001 , financial integration intensified among developed nations and emerging markets , with substantial growth in capital flows among banks and in the trading of financial derivatives and structured finance products . Worldwide international capital flows grew from $ 3 trillion to $ 11 trillion U.S. dollars from 2002 to 2007 , primarily in the form of short-term money market instruments . The United States experienced growth in the size and complexity of firms engaged in a broad range of financial services across borders in the wake of the Gramm – Leach – Bliley Act of 1999 which repealed the Glass – Steagall Act of 1933 , ending limitations on commercial banks ' investment banking activity . Industrialized nations began relying more on foreign capital to finance domestic investment opportunities , resulting in unprecedented capital flows to advanced economies from developing countries , as reflected by global imbalances which grew to 6 % of gross world product in 2007 from 3 % in 2001
September 11 attacks
September 11 attacks
Global financial system