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[Mark12547]

Now, Prosper is searching for lost coins in the bus station couch's cushions. 

  Too funny.... 

Lol! Especially when one remembers the long explanation on why the bus station doesn't have any couches, or rather why they couldn't pay interest on a meber's cash balance.

[Urbi_et_Orbi]

Unless the peeps at Capital One can buy the bodies for cheap and transfer the technology (and the customer data) in-house.

Again, just speculation.

You think Capital One or any subprime lender will want to touch this turd if it didn't even generate one penny in net profit during the boom years and doesn't seem to be doing it now?

Liquidation also does nothing about the class action or the smattering of states that have still banned Prosper.

It's nuclear waste right now.

I am inclined to agree that the current iteration of Prosper is a bit radioactive, but I am not sure I would agree that there is zero value left in the entity or that it has no future value in the hands of someone else.

[Urbi_et_Orbi]

Word travels fast...

http://www.youtube.com/watch?v=8c1fK08-PBc

[christoofar215]

Word travels fast...

http://www.youtube.com/watch?v=8c1fK08-PBc

 
 
 
 
 
 
 
 

[NewHorizon]

Word travels fast...

http://www.youtube.com/watch?v=8c1fK08-PBc

That was awfully well done.  Some professional(s) had a hand in this, me-thinks.

[Weequay2]

Word travels fast...

http://www.youtube.com/watch?v=8c1fK08-PBc

LOL, the comedic value of that video and the prospers forum is definitely worth any money I will lose in a prosper BK.   

[onthefence]

Yeah Prosper.   Fucking over your Lenders did you a lot of good.

Management got some nice salaries off of the venture capitalists.  Management focused on bumping up their short term statistics instead of focusing on a good quality product.

I don't see how management was hurt outside of the gravy train coming to an inevitable halt.  On to the next investment scheme.

[tekiegreg]

I had $200 sitting in my prosper account from those noble few who paid back, just never bothered to transfer it out...until I read this article...

[Auream]

Just transferred out $233 myself. Only $7,621.04 more to go! I should have all of it out within a year, but its not looking like Prosper is going to last that long...

[onthefence]

Just transferred out $233 myself. Only $7,621.04 more to go! I should have all of it out within a year, but its not looking like Prosper is going to last that long...

PM Reflective-Rupee and tell him that Prospers.Org is a bunch of fools who don't know what they are talking about.  Tell him the Prosper.com is a pure gold-mine & we're just too big of idiots to understand him.  Tell him that if he has any questions or doubts to just contact Tiffany Fox, anything we tell him are pure lies.

Don't tell him that the last one out is a rotten egg.

[mothandrust]

For a company teetering on the brink, stifling innovation is really not the right policy.

Lenders are concerned about losing their investment, and many are loath to put in any more.

A hedge loan, like the one I was trying to take out, would have protected me and given me additional hedged capital with which to do another lending contest or one of my other untried ideas.

But I am not willing to risk unhedged money in the quest to find the holy grail of loan-picking.  I could succeed and still lose everything in a Prosper bankruptcy.

[Nora_Lenderbee]

Just transferred out $233 myself. Only $7,621.04 more to go! I should have all of it out within a year, but its not looking like Prosper is going to last that long...

PM Reflective-Rupee and tell him that Prospers.Org is a bunch of fools who don't know what they are talking about.  Tell him the Prosper.com is a pure gold-mine & we're just too big of idiots to understand him.  Tell him that if he has any questions or doubts to just contact Tiffany Fox, anything we tell him are pure lies.

Don't tell him that the last one out is a rotten egg.

RR might actually listen to Auream, since Auream is one of the few lenders still making money here.

[Mark12547]

A hedge loan, like the one I was trying to take out, would have protected me and given me additional hedged capital with which to do another lending contest or one of my other untried ideas.

The risk in a Prosper bankruptcy of both being a borrower and a lender under the new (current) agreements are that the two sides are not coupled: when you lend money, your Notes are investments in unsecured debt of Prosper and you can lose the current balance when Prosper closes its doors; but the borrowing side is an asset of Prosper and could be sold to another entity, so you would end up owing money to a new creditor, but no longer having the benefit of an income stream from your Notes.

That means the very thing that a "hedge loan" is to protect against won't protect against systemic risk of the platform going bankrupt.

Either that, or I just don't understand what a "hedge loan" is. 

[The_Cat]

Word travels fast...

http://www.youtube.com/watch?v=8c1fK08-PBc

ROFL!

Best line..."Don't feel bad Cushie"

edit to correct quote

[mothandrust]

From p.5 of the prospectus...

Accordingly, in the event of a bankruptcy or similar proceeding of Prosper, the relative rights
of a holder of a Note, as compared to the holders of unsecured indebtedness of Prosper are
uncertain. To limit the risk of Prosper’s insolvency, Prosper will grant the indenture trustee a
security interest in Prosper’s right to payment under, and all proceeds received by Prosper on,
the corresponding borrower loans and in the bank account in which the borrower loan
payments are deposited. The indenture trustee may exercise its legal rights to the collateral
only if an event of default has occurred under the indenture, which would include Prosper
becoming subject to a bankruptcy or similar proceeding. Only the indenture trustee, not the
holders of the Notes, will have a security interest in the above collateral.

...the hedge is to ask Prosper or the trustee to offset the payments being made on your loans with what you owe on the "hedge loan".

If they won't offset, then the hedged borrower just stops paying on the Hedge Loan and keeps the money to offset the portfolio losses.

but the borrowing side is an asset of Prosper and could be sold to another entity, so you would end up owing money to a new creditor, but no longer having the benefit of an income stream from your Notes.

Both the Hedge Loan that you owe and the Notes that you are due payments from would be sold to this entity, so that entity can do the offset.