This paper focuses on analyzing the importance of global governance in managing the impact of the financial crisis which began in 2007. The financial crisis began when banks became overleveraged after giving loans to home buyers who had difficulties repaying these loans, thereby causing investors lose confidence in American assets and mortgage-based securities. This crisis then deepened further with a global reach that has affected a wide range of economic, financial and institutional activities in both developed and developing nations. This paper aims to identify and analyze some of the causes that contributed to the persistence of the global financial crisis. The significance of this research is that it identifies and analyses strategies that can be followed by transnational actors through political interactions and financial governance reforms to reduce the impact of debt crises.