The defendant may try to confuse the Jurors by flooding with overwhelming information.
A time line chart showing simple message with hard evidence will be very helpful:
early 2012 - Ms. McFarland, Fannie CFO, told senior officials at the Treasury and FHFA that Fannie had become sustainably profitable and expected to remain that way for the foreseeable future. In her deposition, Ms. McFarland said that she believed her conversation with the Treasury propelled the government to change the terms of the bailout to seize Fannie’s and Freddie’s profits. “When the amendment went into place,” Ms. McFarland testified, “part of my reaction was they did that in response to my communication of our forecasts and the implication of those forecasts, that it was probably a desire not to allow capital to build up within the enterprises and not to allow the enterprises to recapitalize themselves.”
early 2012 - days later, Jim Parrott, an government housing official, requested FHFA to make sure Fannie and Freddie could never leave C-ship.
17 Aug 2012 - UST and FHFA implemented NWS to perpetually sweep Fannie and Freddie of all their future income. Fannie and Freddie can never rebuild their capital to exit C-ship.
Apr 2013 - Fannie reported earning of $17.2B for 2012 and paid $11.6B as interest.
Feb 2014 - Fannie reported earning of $84B and paid to UST $82.4B as interest. The repayment should be able to reduce loan balance from $116B to $40B, if still under 10% interest. Since then, Fannie paid to UST about $15-20B a year under NWS.
Sept 2019 - NWS was amended. Fannie and Freddie were allowed to retain $25B and $20B of their income to protect against unexpected future losses. Devil is in the details. Loan balance was increased dollar-by-dollar for the income retained. After repaying about $380B, Fannie owes UST $168.9B which is much higher than their loan of $116B in 2012. The amendment did not end the NWS.
