Chairman Michael E. Fryzel testimony on “The Credit Union Share Insurance Stabilization Act" before the House Subcommittee on Financial Institutions and Consumer Credit

This written statement is provided by Michael E. Fryzel, Chairman of the National Credit Union Administration (NCUA), concerning the subject of corporate credit unions. The statement is organized in five parts: Part I provides background on the corporate credit union system and a discussion of how the problems currently confronting the system arose; Part II describes the extraordinary actions NCUA has taken since last fall to address the immediate problems and to stabilize the system; Part III discusses credit losses arising from mortgage related securities and associated accounting issues; Part IV discusses the proposed creation of a Corporate Credit Union Stabilization Fund; and Part V describes some of the long-term changes and reforms the NCUA anticipates making to ensure that the system operates on a safe and sound basis going forward.