HOUSE_OVERSIGHT_020938.jpg
1.8 MB
Extraction Summary
0
People
7
Organizations
1
Locations
1
Events
1
Relationships
3
Quotes
Document Information
Type:
Presentation slides / financial report (evidence)
File Size:
1.8 MB
Summary
The document consists of two slides from a financial presentation titled 'USA Inc. | Income Statement Drilldown' produced by KPCB (Kleiner Perkins Caufield & Byers). It details U.S. government spending, specifically highlighting significant losses in entitlement programs (Medicaid, Medicare), debt levels, and the financial impact of Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, noting a $152 billion investment into them following their conservatorship. The document bears a 'HOUSE_OVERSIGHT' Bates stamp, indicating it is part of a larger evidentiary collection.
Organizations (7)
Timeline (1 events)
2010
Placement of Fannie Mae & Freddie Mac into government conservatorship
USA
Locations (1)
| Location | Context |
|---|---|
Relationships (1)
Footer indicates KPCB authored the 'USA Inc. | Income Statement Drilldown' report.
Key Quotes (3)
"GSEs Fannie Mae & Freddie Mac extended their guarantees on residential mortgages from conventional loans into Alt-A, interest-only and subprime loans."Source
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Quote #1
"While technically not part of the federal government, Fannie Mae & Freddie Mac have enjoyed an implicit government guarantee on their debt"Source
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Quote #2
"USA Inc. has so far invested $152B into these two GSEs"Source
HOUSE_OVERSIGHT_020938.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,035 characters)
1
Entitlement Spending
Medicaid (-$273B Net Loss*)
Medicare (-$272B Net Loss*1)
Unemployment Benefits (-$115B Net Loss*)
Social Security (-$75B Net Loss*1)
Entitlement Spending
Medicaid (-$273B Net Loss*)
Medicare (-$272B Net Loss*1)
Unemployment Benefits (-$115B Net Loss*)
Social Security (-$75B Net Loss*1)
2
Rising Debt Level & Interest Payments
Debt Level ($9T Outstanding)
Effective Interest Rates (2.2%)
Debt Composition
Rising Debt Level & Interest Payments
Debt Level ($9T Outstanding)
Effective Interest Rates (2.2%)
Debt Composition
3
Periodic Large One-Time Charges
TARP ($26B Net Profit*2)
Fannie Mae / Freddie Mac (-$41B Net Loss*)
ARRA (-$137B Net Loss*)
Periodic Large One-Time Charges
TARP ($26B Net Profit*2)
Fannie Mae / Freddie Mac (-$41B Net Loss*)
ARRA (-$137B Net Loss*)
Note: *denotes F2010 net income / net loss of respective programs, data per White House OMB. 1) Medicare and Social Security net loss excludes Trust Fund interest income. 2) TARP net loss includes proceeds from sale of warrants. TARP is Troubled Asset Relief Program; ARRA is American Recovery & Reinvestment Act programs.
KP CB www.kpcb.com
USA Inc. | Income Statement Drilldown 193
KP CB www.kpcb.com
USA Inc. | Income Statement Drilldown 193
Government-Sponsored Enterprises (GSEs):
Recipients of 28% of Net Government (Taxpayer) Funding
Recipients of 28% of Net Government (Taxpayer) Funding
• GSEs Fannie Mae & Freddie Mac extended their guarantees on residential mortgages from conventional loans into Alt-A, interest-only and subprime loans.
• While technically not part of the federal government, Fannie Mae & Freddie Mac have enjoyed an implicit government guarantee on their debt and RMBS securities as investors believed (correctly, as it turned out) that the federal government would support these entities if they failed. As a result, GSEs’ long-term debt securities receive AAA/Aaa ratings from all rating agencies and are classified by financial markets as “agency securities” with interest rates above USA Treasuries but below AAA corporate debts.
• Post placing Fannie Mae & Freddie Mac into a government conservatorship, USA Inc. has so far invested $152B¹ into these two GSEs with an estimated $8-13B² more likely over the next 10 years, given the ongoing weakness in housing market and the poor underwriting by Fannie Mae & Freddie Mac.
KP CB www.kpcb.com
Source: 1) U.S. Dept of Treasury, as of 12/10, 2) White House OMB / U.S. Congressional Budget Office.
USA Inc. | Income Statement Drilldown 194
Source: 1) U.S. Dept of Treasury, as of 12/10, 2) White House OMB / U.S. Congressional Budget Office.
USA Inc. | Income Statement Drilldown 194
HOUSE_OVERSIGHT_020938
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