What's interesting is that according to lendingstats none of them are breaking 9% return, but they advertise 9% return on their ads. If the people who run the company can't break 9% retun what does that say to about regular lenders?
Umm, could it be false advertising ?
I think that John Witchel, Anton and the others at Prosper have put themselves into a no win situation. They could have avoided this by taking the "conflict of interest" excuse and not made any loans. But since they are in now, it seems to me that they should all be in a portfolio plan that promises at least the return advertised in that latest marketing material.
Second thought: maybe they are all waiting and saving until the secondary market becomes a reality and they are going to buy up all the bad loans.