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[DakotahFury]

What's new?  I thought our cash funds were always in a Wells Fargo account that was FDIC insured.  Am I missing something?

That's right.  The difference is that before you had to dig to discover that the cash was in a segregated, FDIC-insured account.  Now they tell you right up front.

This is not a small deal, BTW.  It means that Prosper can't tap into your idle cash to fund its own operations, which is a critically important safeguard.  Otherwise that pot of money could look very tempting someday when payroll is due and there's nothing in the bank.

Hmm, does this also mean there's no chance of the current shutdown of lending causing a sort of "run on the bank", where everyone withdraws their funds at once and forces Prosper into bankruptcy?

I'm really worried about Prosper going bankrupt right now.  Sure, in most scenarios the loans would probably be bought up by someone, but in the current environment I don't see any way we'd get face value and probably not even fair market value.

Too bad Warren Buffet's already tapped out.  Maybe Henry Paulson can throw some of that $700 billion our way?  I want out.

I'm pretty sure that Buffet could come up with the money...the outstanding loan value for all PMI loans is but a rounding-error for him. He could afford it. Unfortunately, he's also smart...so I doubt he'd be interested.

[ira01]

What's new?  I thought our cash funds were always in a Wells Fargo account that was FDIC insured.  Am I missing something?

That's right.  The difference is that before you had to dig to discover that the cash was in a segregated, FDIC-insured account.  Now they tell you right up front.

This is not a small deal, BTW.  It means that Prosper can't tap into your idle cash to fund its own operations, which is a critically important safeguard.  Otherwise that pot of money could look very tempting someday when payroll is due and there's nothing in the bank.

Hmm, does this also mean there's no chance of the current shutdown of lending causing a sort of "run on the bank", where everyone withdraws their funds at once and forces Prosper into bankruptcy?

The only cash you can withdraw is the cash in your lending account, which is 100% available to be withdrawn.  So no, there cannot be a "run" on Prosper like with a bank.  

[Xenon481]

What's new?  I thought our cash funds were always in a Wells Fargo account that was FDIC insured.  Am I missing something?

That's right.  The difference is that before you had to dig to discover that the cash was in a segregated, FDIC-insured account.  Now they tell you right up front.

This is not a small deal, BTW.  It means that Prosper can't tap into your idle cash to fund its own operations, which is a critically important safeguard.  Otherwise that pot of money could look very tempting someday when payroll is due and there's nothing in the bank.

Hmm, does this also mean there's no chance of the current shutdown of lending causing a sort of "run on the bank", where everyone withdraws their funds at once and forces Prosper into bankruptcy?

The only cash you can withdraw is the cash in your lending account, which is 100% available to be withdrawn.  So no, there cannot be a "run" on Prosper like with a bank.  

Unless he's talking about Prosper Bank.  You never can tell.

Edit:  I need to learn how to quote. . . .

[mothandrust]

The only cash you can withdraw is the cash in your lending account, which is 100% available to be withdrawn.  So no, there cannot be a "run" on Prosper like with a bank.  

All the same, I am taking out every penny in my lending account, just in case there is some error and the amount in the account at Wells doesn't match exactly with the aggregate lender balance.