This is a forensic accounting scenario. ABC company has acquired M&M company. The two attached charts are supposed to show something suspicious. I just need to know WHAT these charts are conveying. I don't understand the terminology.

Case Study Overview Forensics Post financial crisis, the banking industry faced a number of challenges. Consolidation among surviving entities in the industry created complications amongst IT, financial, and data systems. Surviving management teams inherited unresolved and complex financial, legal and regulatory issues. By 2011 the industry faced litigation on a number of fronts related to perceived inappropriate practices during the credit bubble and subsequent crisis. This litigation took several shapes. Fannie Mae and Freddie Mac alleged that they had been misled when they purchased what were presented as high quality mortgage backed securities, which subsequently lost significant value. They alleged that the banks had painted a false picture of the characteristics and risks of the underlying mortgage backed securities. A mortgage backed security's risk profile is dependent on the creditworthiness of the ultimate borrower, the origination and underwriting policies that were used when making the loan, and the loan characteristics. For example, it has been alleged that banks utilized certain vetting procedures before loans were purchased for securitization, when in fact they were not, that the percentage of homes that were owner occupied was lower than advertised, and that Loan to Value (LTV) ratios were higher than stated. (Refer appendix 1 for definitions). It has also been alleged that banks generated profits at each step of the loan generation and securitization process and were thus incentivized to simply generate as much volume as possible, without regard to loan quality. Many banks responded by arguing that they also suffered large losses and thus had \"skin in the game\" as well. Attorney Generals of various states filed cases alleging, among other things, that banks had engaged in \"Robo-signing\