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[112233]

it must suck to be a reporter covering prosper and have your articles out of date by the time they are published
http://www.nuwireinvestor.com/articles/prosper-returns-to-peer-to-peer-lending-marketplace-52936.aspx

I posted a reply telling them to fact check before posting, and pointing out they had 5 days to do so. (My reply was put into pre-moderation limbo)

Now the whole post is gone.

they changed the article .. the title, and some text

[Tokyo Joe]

it must suck to be a reporter covering prosper and have your articles out of date by the time they are published
http://www.nuwireinvestor.com/articles/prosper-returns-to-peer-to-peer-lending-marketplace-52936.aspx

I posted a reply telling them to fact check before posting, and pointing out they had 5 days to do so. (My reply was put into pre-moderation limbo)

Now the whole post is gone.

they changed the article .. the title, and some text

They did post my reply too. 

[Mark12547]

The Wall Street Journal Blogs: Why Prosper.com Halted New Loans — Again

They say the insiders think the SEC wasn't happy about the opening during the "quiet period".

[Mtnchick]

The Wall Street Journal Blogs: Why Prosper.com Halted New Loans — Again

They say the insiders think the SEC wasn't happy about the opening during the "quiet period".

Reopening during the quite period was like mooning a cop when you're speeding down the interstate - not real smart and sure to get you the kind of attention you don't want.

[Tokyo Joe]

The Wall Street Journal Blogs: Why Prosper.com Halted New Loans — Again

They say the insiders think the SEC wasn't happy about the opening during the "quiet period".

Reopening during the quite period was like mooning a cop when you're speeding down the interstate - not real smart and sure to get you the kind of attention you don't want.

Well said.  And Prosper's excuse for closing down again --the outcry from the lenders who couldn't lend--  is akin to telling the cop, "I'm pulling over for you, officer, so all the girls can wave to me"

[Mtnchick]

The Wall Street Journal Blogs: Why Prosper.com Halted New Loans — Again

They say the insiders think the SEC wasn't happy about the opening during the "quiet period".

Reopening during the quite period was like mooning a cop when you're speeding down the interstate - not real smart and sure to get you the kind of attention you don't want.

Well said.  And Prosper's excuse for closing down again --the outcry from the lenders who couldn't lend--  is akin to telling the cop, "I'm pulling over for you, officer, so all the girls can wave to me"

 

[Elmslice]

Last night Frontline broadcast a report entitled "The Madoff Affair."  It was an interesting program even for those of us who have followed the story closely.  On topic for this forum was a discussion regarding how Madoff was able to get away with selling securities without those securities being registered with the SEC.  It was stated that there is an "intrastate exemption" but that it applies only to if the security is sold to 15 or fewer customers.   The SEC has no explanation as to why they allowed Madoff to sell unregistered securities to thousands. 

So, could something like this have possibly happened?:

Prosper:  We're reopening.  The intrastate exemption allows us to sell securities to California investors only.   We have California's permission.  Suck it, SEC.

SEC:  Are you going to sell your securities to more than 15 Californians? 

Prosper:  Uh, yeah.

SEC:  Then you have to register with us.

Prosper:  We're closed again.

[Urbi_et_Orbi]

I wish I felt there was a greater degree of ethical differentiation between people like Madoff and the people running Prosper.

[TotoMMB]

It was stated that there is an "intrastate exemption" but that it applies only to if the security is sold to 15 or fewer customers.  

Coming soon, Prosper Lite! Or Prosper V.0.01.

"Come on in, we offer loans ranging from $1,000 to $3,000, 36-60 months terms, sold to a select group of VIP lenders. All notes auto-fund at the time of 15 bidders or 100% value, whichever comes first."

[NewHorizon]

It was stated that there is an "intrastate exemption" but that it applies only to if the security is sold to 15 or fewer customers.   

Easily solved.

Prosper just needs to divide the number of California lenders by 15 and open that many mini-Prospers. 

[112233]

I wonder if they played ignorant so they could open for a few weeks for the finovate show

[Mtnchick]

Besides the transfer money to Prosper still being available, emails I receive from them still say "Come on back and find some new notes to bid on:" with a big button link saying "Bid again now". Surely that's an easy fix. 

[ira01]

I wonder if they played ignorant so they could open for a few weeks for the finovate show

Although one never knows with prosper, I doubt it.  Re-opening and re-closing makes Prosper look like such an enormous idiot, that I doubt it would have been worth it. 

[112233]

I wonder if they played ignorant so they could open for a few weeks for the finovate show

Although one never knows with prosper, I doubt it.  Re-opening and re-closing makes Prosper look like such an enormous idiot, that I doubt it would have been worth it. 

Maybe they thought the campaign they launched at the same time (website, lobbying firm, CL Blog posts) would be enough to keep the SEC at bay.

[TotoMMB]

Although one never knows with prosper, I doubt it.  Re-opening and re-closing makes Prosper look like such an enormous idiot, that I doubt it would have been worth it. 

Agreed. Seems like all they did was further irk the SEC, all the while burning the few participants that returned (400+ attempted loans, 500+ CA lenders, new partner CPS). Now their foolish backpedaling/change of heart/"bowing to the people" is just heaping the embarassment on.