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[Mtnchick]

http://blog.prosper.com/2009/08/18/the-financial-anatomy-of-a-porn-star/

http://www.facebook.com/home.php?filter=lf#/ProsperPink?v=wall&ref=search

OK'd for lobby

[Urbi_et_Orbi]

Appears to be just the latest chapter in a systematic history for Prosper Loans Marketplace (Prosper.com) to remove "blog posts" and "Prosper stories" when the loan they promoted turns sour.

Additional info on this:

http://theofficialpioneer11rag.blogspot.com/2010/01/this-entry-in-blog-of-prosper-loans.html

http://www.google.com/search?hl=en&q=prosper+%22nina+jaymes%22&aq=f&oq=&aqi=

[God-Father]

Second for lobby.

[Urbi_et_Orbi]

It is incredibly distasteful to have a section called "Prosper success stories" celebrating people getting funded - and then quietly deleting those success stories when the borrower defaults.

Similarly, it is completely unacceptable to blog, twitter, facebook and do press outreach regarding certain borrowers - only for Prosper Loans Marketplace (prosper.com) to start deleting those same blog posts when the borrower starts on the road to delinquency.

Shameful.

[TotoMMB]

Maybe they should have waited for the whole process to play through before claiming success. Even if the borrower paid the notes back early, it would still give the appearance of due diligence (although it could run against the mythical 7-14% returns touted on the site).

But to claim the transaction a success solely based on the borrower getting money shows where their allegiance lies.

[ira01]

It is incredibly distasteful to have a section called "Prosper success stories" celebrating people getting funded - and then quietly deleting those success stories when the borrower defaults.

Similarly, it is completely unacceptable to blog, twitter, facebook and do press outreach regarding certain borrowers - only for Prosper Loans Marketplace (prosper.com) to start deleting those same blog posts when the borrower starts on the road to delinquency.

Shameful.

Shameful indeed.  But, unfortunately, all too typical for Prosper.

[pioneer11]

Appears to be just the latest chapter in a systematic history for Prosper Loans Marketplace (Prosper.com) to remove "blog posts" and "Prosper stories" when the loan they promoted turns sour.

Additional info on this:

http://theofficialpioneer11rag.blogspot.com/2010/01/this-entry-in-blog-of-prosper-loans.html

http://www.google.com/search?hl=en&q=prosper+%22nina+jaymes%22&aq=f&oq=&aqi=

I added links on the blog back here and to Eric's.

[112233]

random question. sorry if im hijacking the thread ..


what would the SEC's reaction be (if any) to the scenario below?

a financial company advertises and blogs about a great security and tries to get people to buy it. the security then tanks and everybody loses money. the financial company then turns around and deletes the blogs and all history of the company ever advertising the thing.

[Fred93]

what would the SEC's reaction be (if any) to the scenario below?

a financial company advertises and blogs about a great security and tries to get people to buy it. the security then tanks and everybody loses money. the financial company then turns around and deletes the blogs and all history of the company ever advertising the thing.

I don't think this would interest the SEC, as it doesn't intersect with any SEC regulations.  Deleting blogs or not is not within their purview.  The blog detailed Prosper's view that lending money to an aging B-grade porn actress wannabe was "financially sassy".  The SEC doesn't regulate statements about sassiness.

[christoofar215]

Because they're deleting social media pages is all.


This isn't like Arthur Andersen sending coded-emails "reminding employees about document retention policies" and "not to keep any documents and worksheets that aren't a part of the official audit of the client account" *hint hint wink wink*, etc.

That whole mess created what we know today as Sarbanes-Oxley, and social media sites really weren't en vogue then either.  'Tis a shame because I do agree with you on one point... these deleted "SUCCESS!!!!" stories is analogous to the color-copier brochure crap that a lot of fund managers ship out as pitchbooks to their clients to buy their latest turd.

random question. sorry if im hijacking the thread ..


what would the SEC's reaction be (if any) to the scenario below?

a financial company advertises and blogs about a great security and tries to get people to buy it. the security then tanks and everybody loses money. the financial company then turns around and deletes the blogs and all history of the company ever advertising the thing.

[christoofar215]

Follow-up:

I still think it's fucked up that Prosper declares "SUCCESS!!!" just because a loan originated and the borrower got the funds dispensed.



It is not a success until the loan is closed and the balance on the account reads zero dollars.    A traditional brick-and-mortar bank would think so.   I think so.    Why doesn't Prosper think so?   Because it's not "Web 2.0-ish" to think that way?

[Fred93]

Follow-up:
I still think it's fucked up that Prosper declares "SUCCESS!!!" just because a loan originated and the borrower got the funds dispensed.

Indeed.  You've hit on one of their most basic attitude problems.

[mothandrust]

Early on we were speculating about what the default rate would be, but now we have years of data showing that 40% of the loans default.

Prosper has two choices:

One is to make substantive changes that will improve lender satisfaction and performance.  They had months to do this and wasted the opportunity.

The other is to rely on smoke and mirror marketing gimmicks while hoping and praying that the newbie lenders don't find out about their track record--delete all the negative information, censor the blogs, poof the forums.

[NewHorizon]

OK, so why is the subject of this thread in the form of a question?   

[christoofar215]

The more I hear CL crap about how "we need to revolutionize the way banking is done" or "we need to energize the banking industry"
the more I am convinced the only way to revolutionize the banking industry is to just fucking stop borrowing altogether and deny the banks any significant income (pay cash, if you use debit--turn off OD protection).

We've now been without cheap-easy consumer credit since '08 and I don't see any riots or panic in the streets.    All the businesses that thrived off the cycle of consumer credit are destitute and bankrupt or nearly-so; but there's still plenty of economic activity left.




I wonder if CL ever thought to himself late at night, sitting in bed.... "you know, if Citibank almost went tits up because they couldn't survive charging crazy interest rates to cash-starved borrowers, how can Prosper survive doing it?"


Answer:   Get more cash.