The ramifications of the alien Skrulls' secret invasion of Earth forced a massive restructuring of the United States' defense network. At the time, the country's primary peace keeping agency was S.H.I.E.L.D., led by civilian industrialist Tony Stark, aka, Iron Man. Because the Skrulls were able to compromise S.H.I.E.L.D.'s StarkTech technology, it was decided that S.H.I.E.L.D. was no longer an effective organization and Tony Stark was personally held accountable for not preparing adequately for the Skrull invasion. In the wake of this controversy, Thunderbolts leader Norman Osborn manipulated the U.S. government into allowing him to serve as director of a replacement agency called H.A.M.M.E.R. Under Osborn's leadership, H.A.M.M.E.R. had administrative control over the entire 50-State Initiative.