Wall Street developed the structured finance industry as a response to the decreasing profitability in its traditional businesses, such as stock and bond broking. With the rise of the internet, competition intensified, leading to reduced profits in these conventional areas. The shift towards structured finance allowed financial institutions to seek new avenues for revenue generation.

This transition highlights how market dynamics can push firms toward innovative financial products. As traditional brokerage activities faced challenges, Wall Street adapted by creating complex financial instruments, altering the landscape of finance in pursuit of higher profits.