Epstein Secrets

Year Average Yield Weighted Average Treasury Yields (%) 0% . T T T T T T T T T T 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 KP Source: US Treasury. i USA Inc. | Income Statement Drilldown 165 Effective Interest Rates: If Debt Levels & Interest Rates Rise Dramatically Beyond 2010, Net Interest

s Helped Fuel It, Too, as They Reached For Yield Without Questioning AAA Ratings of A Subprime-Backed Investments Investors picked up 25-35bps over U.S. Treasuries with comparable maturity, typically levered 10:1 and generated 2.5-3.5% yield, meaningful against an 8% annual yield target Illustrative AAA-Rated S

Consider Review Tax Rates Changing MEE Reduce Subsidies / Tax Expenditures*/ eee Broaden Tax Base Note: *Tax subsidies / expenditures are losses to the U.S. Treasury from granting certain deductions, exemptions, or credits (such i as those on mortgage interest payments and employer-sponsored health insurance payme

One-Time Charges to USA Inc. ($B) F2008 F2009 F2010 YTD* 4 Years Government-Sponsored Enterprises (GSEs) $14 $97 $41 _ $152 Fannie Mae -- 60 23 -- 83 Freddie Mac $14 37 18 — 69 Troubled Asset Relief Program (TARP)* - $261 -$26 -$23 $213 Banks -- 134 -85 -28 21 Automakers -- 78 -6 -14 58 AIG -- 49 -- 20 69 Indi

ns "cannot be allowed to lose money or be driven out by upstart competitors" who threaten their profits. 1° Financial Stability Oversight Council, US Department of the Treasury, hup://www.treasury.gov/initiativesifsocklesignations/Pages/default.aspx. " Mark Schoeff Ir., "SEC commissioners 'ush back against systemic desi:na

of the financial system in order to protect against future crises. We do not have to diagnose and correct the sources of the crisis, Fannie Mae and Freddie Mac, the community reinvestment act, so-called predatory lending, no- documentation loans, perceived global imbalances or savings gluts, Wall Street "gre

change the reality of evolving global markets. • The answer to avoiding a systemic failure is perhaps found in the extraordinary measures taken by the U.S. Treasury and Federal Reserve last year. 2 SONY_GM_00077287 Confidential Treatment Requested by JPMorgan Chase JPM-SDNY-00000414 EFTA 00187759 EFTA013002

es of personal financial loss that can happen quickly when confidence in the world financial markets falters. • The near failure of Fannie Mae and Freddie Mac, followed by the bankruptcy of Lehman Brothers and the intervention in MG, obliged most governments around the world to support bank deposits and m

mand in free fall and liquidity all but non-existent. • Today, following aggressive actions by worldwide authorities the US. Federal Reserve, and the U.S. Treasury with-ethersufberities-werldwiderprifteipal-equity emehnages-prices have riseintre-up, spreads and volatility have declined, and credit is once agai

rsettal-fineneial-less-that-enft himpen-quic4dndien-eonfftlenee4n-the-werld-finatieitektinrkets-fiitters; • —The near failure of our Fannie Mae and Freddie Mac. followed by the strain, bankruptcy of Lehman Brothers and the required intervention in MG, obliged mest-magovernments around the world to support

any woukl emerge in a matter of months with a new partner "This morning's closing represents a proud moment in Chrysler's storied history," said the Treasury Department in a written statement Wednesday "The Chrysler-Fiat Alliance has now exited the bankruptcy pro- cess and is poised to emerge as a competi- tive, vi

s up slightly WksilINKITON —11w average rate for a 30-year fixed mortgage was 5.42 percent, up from 5.38 percent a week earlier, mortgage company Freddie Mac said Thursday. Rates on 30-year mort- gages fell to a record low of 4.78 percent earlier this year. But then they rose as high as 5.6 percent earl

Liabilities Minus Unfunded Entitlement Liabilities — Assets include cash & investments, taxes receivable, property, plant & equipment (as defined by Department of Treasury). — Liabilities include accounts payable, accrued payroll & benefits, federal debt, federal employee & veteran benefits payable... — Unfunded Entitle

e Interest Rates Pe ee 161 Debt Composition Pe ee er 168 Periodic Large One-Time Charges +++ +s ttt ttt ttt tt ts 177 TARP = ft tt 188 Fannie Mae/ Freddie Mac =: * : tt tt tt tt ee ee 193 ARRA 2 ot ttt 200 Balance Sheet Drilldown += - st tt ttt 209 CB www.kpcb.com USA Inc. Vv HOUSE_OVERSIGHT_020828 What

nd in free fall and liquidity all but non-existent. • Today, following aggressive actions by worldwide authorities , the U.S. Federal Reserve, and the U.S. Treasury with-etheF-autheFities-wecldwitler pFineipal-equity exeltanges-prices have risenaFe-up, spreads and volatility have declined, and credit is once ag

f-persenal-finaneial-less-that-ean happen-quiekly-when-eenfitlenee-in4he-werld-finaneial-ntathets-falteFs: • The near failure of our Fannie Mae and Freddie Mac, followed by theikosi gdn bankruptcy of Lehman Brothers and the required intervention in AIG, obliged Fuest-rraig r overnments around the world to