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[Urbi_et_Orbi]

http://www.wiseclerk.com/group-news/uncategorized-p2p-lending-trends-to-watch-in-2010/

Wiseclerk stops short of mentioning Prosper Loans Marketplace by name, but I am not aware of another player receiving the amount of bad press as that of Prosper.com.

An established peer-to-peer-lending service will fail (probability 50%)
While p2p lending as a whole is growing fast, some services face economic challenges. It is possible that one of them will fail in 2010 and close (This would not be the first time this has happened – remember Boober and Fairrates). The market it did operate in will likely experience slowed growth due to bad press. A major failure would also affect the funding chances of any service still in idea/planning phase.

[cubbiesnextyr]

As long as they can get through September I'll be fine, my last non-late loan matures 9/28/2010.

[bamalucky]

Can you imagine the fiasco a Prosper BK would turn into. This site would double in members in days.

Oh joy,i'll have to put "I told ya so" in my siggy.

[Senator]

50% probability seems low to me.  I'd go as high as 70% probability.

Lobby.

[Mtnchick]

2nd

[xraider]

It would be a major tragedy if Prosper failed in 2010.  I particularly appreciate Prosper's eagerness to correct problems by changing the terms of service, uniformly to the lenders' detriment.

This company should fail.... but only after paying megabucks in the class action now pending against it.   

[ira01]

It would be a major tragedy if Prosper failed in 2010.  I particularly appreciate Prosper's eagerness to correct problems by changing the terms of service, uniformly to the lenders' detriment.

This company should fail.... but only after paying megabucks in the class action now pending against it.   

Well, hopefully either the individual defendants (hello, Chris) will have to pay out of their pockets, or the insurance will pick up the tab.  Overall, it would be a big service to the public for Prosper to BK sooner rather than later,

[mothandrust]

If Prosper can't raise any more VC cash, they can get a bank loan or credit line using the 3.0 Notes as collateral. 

Maybe they already have?

Since the 3.0 Notes are unsecured, the bankruptcy trustee would escrow the payments of principal and interest and be able to pay back the bank.

[ira01]

If Prosper can't raise any more VC cash, they can get a bank loan or credit line using the 3.0 Notes as collateral. 

Maybe they already have?

Since the 3.0 Notes are unsecured, the bankruptcy trustee would escrow the payments of principal and interest and be able to pay back the bank.

Prosper is only originating $2M a month in loans, and some portion of those will default.  And current payments go to the "lenders" as long as Prosper isn't in BK.  So I doubt they could borrow a whole lot based on those -- almost certainly not their $1M a month burn rate.

[cowdiddly]

Don't worry. They are a Financial company. Obama will bail them out, Prosper is about as solvent as most of the Banks in the country. Nothing a little stimulus won't take care of after Chrisypoo changes Prosper into a Bank Holding company.

[The_Cat]

Don't worry. They are a Financial company. Obama will bail them out, Prosper is about as solvent as most of the Banks in the country. Nothing a little stimulus won't take care of after Chrisypoo changes Prosper into a Bank Holding company.

Wrong...not too big to fail.

[The_Cat]

50% probability seems low to me.  I'd go as high as 70% probability.

Lobby.

I'll see your 70% and rise you to 90%

[DakotahFury]

Don't worry. They are a Financial company. Obama will bail them out, Prosper is about as solvent as most of the Banks in the country. Nothing a little stimulus won't take care of after Chrisypoo changes Prosper into a Bank Holding company.

I actually think this is a real possibility. Lets not forget that Larsen is a pretty significant Democratic donor. I don't see why the current admin wouldn't consider using the slush fund TARP to prop up Prosper. I'd be willing to bet a paycheck that Larsen has tried to grease those wheels already.

[ira01]

Don't worry. They are a Financial company. Obama will bail them out, Prosper is about as solvent as most of the Banks in the country. Nothing a little stimulus won't take care of after Chrisypoo changes Prosper into a Bank Holding company.

I actually think this is a real possibility. Lets not forget that Larsen is a pretty significant Democratic donor. I don't see why the current admin wouldn't consider using the slush fund TARP to prop up Prosper. I'd be willing to bet a paycheck that Larsen has tried to grease those wheels already.

Give me a break -- to say that Prosper is a bit player is a massive understatement.  In the overall scheme of financial institutions, Prosper is akin to a kid with a lemonade stand in his front yard.  There is no chance in hell of a federal bailout.

[DakotahFury]

Don't worry. They are a Financial company. Obama will bail them out, Prosper is about as solvent as most of the Banks in the country. Nothing a little stimulus won't take care of after Chrisypoo changes Prosper into a Bank Holding company.

I actually think this is a real possibility. Lets not forget that Larsen is a pretty significant Democratic donor. I don't see why the current admin wouldn't consider using the slush fund TARP to prop up Prosper. I'd be willing to bet a paycheck that Larsen has tried to grease those wheels already.

Give me a break -- to say that Prosper is a bit player is a massive understatement.  In the overall scheme of financial institutions, Prosper is akin to a kid with a lemonade stand in his front yard.  There is no chance in hell of a federal bailout.

That's exactly why I think it's a possibility. It's a small player...and an innovative financial instrument based on very much progressive ideas. It may not be TARP...it may not be a "bailout"...but watch out for some sort of government assistance. A cash infusion or equity purchase in the company of just a few million wouldn't even register on the radar.