"As you'll recall, I have been pretty pessimistic on the housing market for the last couple of years... so... we've been diversifying our mix of businesses."

We tightened underwriting, we decreased production volume by about half in the subprime area... and we decreased the subprime portfolio.... As the housing market has softened as expected, what I have really seen is a continued very good performance out of most parts of the portfolio." -- CEO Kerry K. Killinger on Jan. 17, 2007