There is an old saying that “success has many fathers, but failure is an orphan.” Since the NCUA’s response to the corporate crisis of 2008 and 2009 is viewed by most as a success, many claims of paternity have arisen. The corporate crisis presented a potentially fatal problem for the credit union system, as acknowledged in NCUA Chairman Debbie Matz’s written testimony before the House Financial Institutions and Consumer Credit Subcommittee on July 23:

When I returned to the NCUA Board in August 2009, in the wake of the Great Recession, the credit union system was on the brink of collapse. To prevent this, we developed an unprecedented mechanism to securitize $50 billion in toxic corporate credit union assets.

Many people played pivotal roles in making the corporate resolution program a success and it is important to acknowledge the specific contributions of these key participants. In particular, former NCUA Chairman Mike Fryzel and NCUA staff members were instrumental in developing the core infrastructure of the agency’s response to the corporate crisis and negotiating its terms with Congress, Treasury and the Federal Reserve. Because I was not involved in the development, negotiation or implementation of the NCUA’s strategy, I decided to beam myself back to those gloomy days of 2008 and 2009 and develop a timeline of actual events so as to assist my understanding of who played what role in the development of the NCUA’s response to the corporate crisis.

My research confirmed that many aspects of the agency’s corporate stabilization efforts were completed, and the foundation for the resolution and reform strategies were laid, during Chairman Fryzel’s tenure from August 2008 to August 2009 – when decisive action to prevent the collapse of the credit union system was most needed. Subsequently under Chairman Matz’s tenure, the NCUA Board and staff, including Board Member Fryzel, worked to finalize and implement the resolution and reform plans. The success of these plans was only possible because of the work begun during Chairman Fryzel’s term.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.