The purpose of this article has a dual character. First, the author analyses the reasons of the financial crisis in Latvia from the standpoint of risks of actions of the regulators. Such risks are similar to the technological hazards, i.e. the risks emergence of which is directly connected with people’s economic activity. In case the state administrative authorities neglect the economic regularities and do not operate them at adoption of strategic decisions, the implementation of such risks inevitably leads to various cataclysms. Secondly, on the basis of the analysis of event development in the banking area the author discloses the true reasons which brought the Latvian economy to the deepest financial crisis among the countries of the European Union. The results of research testify the mistakes of the central bank made at the moment of establishment of national currency rate. The country had a possibility to provide unreasonably high rates of GDP growth due to the overestimated currency especially in the mid 2000s.