Jamie Dimon, CEO of J.P. Morgan:

Rising defaults in some of the riskiest home loans offered by J.P. Morgan Chase & Co. signal a recession may be looming. “Home equity is subject to deterioration” from a recession


Wachovia Corp. recently shut down its EquiBanc Mortgage Corp. unit, following “an intensive strategic review of its mortgage business which has altered the company’s approach to the origination of non-conforming loans,” according to a message on EquiBanc’s Web site. Countrywide Financial Corp., the nation’s largest mortgage lender, offered a gloomy forecast when it announced fourth-quarter results Tuesday, citing continued credit deterioration in the entire mortgage industry. And a number of small subprime lenders have gone out of business, while others have sold themselves to Wall Street firms.