It is clear that bank crisis occur when there is excess expenditure on investment due to low generated income from the said investment to facilitate daily business obligations. This could be as a result of bad credit management, market inefficiencies and operational risk, among a host others. These undoubtedly can trigger panic withdrawals by depositors with a sense of insecurity for fear of bank collapse and loss of investment. In fact, the failure of these two banks is attributable to varied factors spanning from non-monitoring of employee activities, involvement in dubious accounting practices, unethical practices by management, over indulging in risky and unsecured investments in derivatives. It is recommended that, governments create legal rules to reduce externalities.Similarly, there should be enhancedcommunication among international regulators and authorities that exercise oversight responsibilities on the security market. National bankruptcy laws should be promoted to forestall liquidity crisis so as not to freeze the margins and positions of solvent customers.