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[nonattender]

http://www.peer-lend.com/2008/04/08/lending-club-shuts-down-temporarily/

-t

(What was the first rule of Fight Club, again?)

[HollowOak]

Damn, you beat me to it. 

[LoanChimp]

wow. I just opened a lendingclub account recently. I transferred my money back out because I couldn't find anything worth bidding on.

Looks like Prosper might be next... 

[BrassKnuckles]

they are leaping forward I think... setting up a future seller marketplace for their loans... that's what I see when reading between the lines

[Xenon481]

they are leaping forward I think... setting up a future seller marketplace for their loans... that's what I see when reading between the lines

No, they are saying that if they don't change how they work today they are afraid that the SEC is going to shut them down for unliscensed selling of securities.

[Nora_Lenderbee]

Got my $50 bonus just in time.

[Mtnchick]

For those of us who never invested in LC (once bitten, twice shy) what are the similarities and differences that could 1. keep P-----r running or 2. put P-----r in the same position?

[cowdog]

Prosper has the loan. We have notes. Those notes are probably classified as securities. If this is so, a P2P lender needs to be registered with the SEC or they would be guilty of selling unlicensed securities.

[Tokyo Joe]

Prosper has the loan. We have notes. Those notes are probably classified as securities. If this is so, a P2P lender needs to be registered with the SEC or they would be guilty of selling unlicensed securities.

Assuming they actually sold them to us...

[onthefence]

Sounds like trouble like this:
http://online.wsj.com/public/article/SB120735504829291471-rqm93mx4_MYACmJYeyWerCxg5KU_20080504.html?mod=tff_main_tff_top

[ira01]

Sounds like trouble like this:
http://online.wsj.com/public/article/SB120735504829291471-rqm93mx4_MYACmJYeyWerCxg5KU_20080504.html?mod=tff_main_tff_top

That would actually be pretty damn sweet for some lenders:

For some buyers, a securities-law claim could provide a way to undo a purchase. "The rights of recovery are so much better if you can say it is a security," said Burton Wiand, a former SEC attorney who now practices at Fowler White Boggs Banker in Tampa, Fla.

If the transaction should have been registered, buyers can rescind the deal and get their money back, without having to prove fraud and misrepresentation, attorneys said.

[Urbi_et_Orbi]

Historically, the SEC has suggested it wouldn't take enforcement actions against a condo-hotel developer as long as the company didn't provide prospective buyers with projections of income or expected occupancy, among other conditions.

(emphasis mine)

Could the experian default projection and the portfolio guidance fall into this same category?  Additionally, I participated in a lending seminar organized by Prosper where Karen and Shira stated that ROI=Interest rate minus experian's estimated default rates.

[Mtnchick]

Historically, the SEC has suggested it wouldn't take enforcement actions against a condo-hotel developer as long as the company didn't provide prospective buyers with projections of income or expected occupancy, among other conditions.

(emphasis mine)

Could the experian default projection and the portfolio guidance fall into this same category?  Additionally, I participated in a lending seminar organized by Prosper where Karen and Shira stated that ROI=Interest rate minus experian's estimated default rates.

Wouldn't the ads alone be be providing prospective buyers with projections of income?

[Xenon481]

Sounds like trouble like this:
http://online.wsj.com/public/article/SB120735504829291471-rqm93mx4_MYACmJYeyWerCxg5KU_20080504.html?mod=tff_main_tff_top

That would actually be pretty damn sweet for some lenders:

For some buyers, a securities-law claim could provide a way to undo a purchase. "The rights of recovery are so much better if you can say it is a security," said Burton Wiand, a former SEC attorney who now practices at Fowler White Boggs Banker in Tampa, Fla.

If the transaction should have been registered, buyers can rescind the deal and get their money back, without having to prove fraud and misrepresentation, attorneys said.

Turning my -14.5% ROI into a 0% ROI would be pretty sweet!

[cowdog]

Sounds like trouble like this:
http://online.wsj.com/public/article/SB120735504829291471-rqm93mx4_MYACmJYeyWerCxg5KU_20080504.html?mod=tff_main_tff_top

That would actually be pretty damn sweet for some lenders:

For some buyers, a securities-law claim could provide a way to undo a purchase. "The rights of recovery are so much better if you can say it is a security," said Burton Wiand, a former SEC attorney who now practices at Fowler White Boggs Banker in Tampa, Fla.

If the transaction should have been registered, buyers can rescind the deal and get their money back, without having to prove fraud and misrepresentation, attorneys said.

Turning my -14.5% ROI into a 0% ROI would be pretty sweet!

I don't guess it matters much for small lenders, but for Pensioner ($800K), Muleshoes ($400K), and others it would be worth a lawsuit. In the end, they might pay less in attorney's fees than what they lost on Prosper.