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Troubled Asset Relief Program (TARP):
Recipient of 38% of Net Government (Taxpayer) Funding*

In TARP, the financial rescue program (created in October, 2008),
USA Inc. purchased assets and equity from financial institutions to
provide the capital and liquidity needed during the 2008 financial
crisis (which followed the real estate bubble).

In 2009, TARP recipients were broadened to include automakers, an
insurance company (AIG), individual homeowners, small & medium-
sized businesses and other non-bank financial institutions.

To date, USA Inc. loaned these institutions $464 billion and received
$250 billion in repayment and warrant proceeds for a net outstanding
loan balance of $214 billion.

KP
CB www.kpcb.com
Note: *As of 2/11, numbers are rounded. Source: Dept. of Treasury.
USA Inc. | Income Statement Drilldown 189

TARP Distribution –
Equally Distributed Among Financial Institutions / Automakers / Insurer / Individuals as of 2/11

Outstanding Troubled Asset Relief Program (TARP) Balance of $214B¹ as of 2/11

Insurance
Company
AIG²
$69B

Homeowners
$38B
Individuals

Consumers &
Small Businesses⁴
$4B

Toxic Asset Holders³
$22B
Financial
Institutions

Banks
$23B

SunTrust Banks - $5B
Regions Financial - $3.5B
....

Auto
Companies
Automakers
$58B

Note: 1) #s are rounded, includes warrant proceeds of $10B from banks. 2) Total principal + accrued interest on AIG preferred stock purchased by U.S. Treasury prior
to 1/11 = $49B, on 1/14/11, AIG drew an additional $20B TARP funding to buy out Federal Reserve’s investment. 3) Including banks and other financial institutions;
done via Public-Private Investment Program (PPIP) under which Treasury provides equity and debt financing to newly formed public-private investment funds (PPIFs)
established by fund managers with investors for the purpose of purchasing legacy securities from financial institutions. These securities are commercial mortgage-
backed securities and non-agency residential mortgage-backed securities. 4) Consumers and small & medium-sized businesses that need loans would benefit from
the Term Asset-Backed Securities Loan Facility (TALF), through which the Fed provides loans to help support the issuance of asset-backed securities (which would in
turn fund a substantial portion of the consumer credit and small business loans). Source: Dept. of Treasury, AIG, data as of 2/14/10.
KP
CB www.kpcb.com
USA Inc. | Income Statement Drilldown 190

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