I really don't see how Prosper will end except badly.
The hole is so deep now,i don't see how they can ever wash away the past when it's being added to daily.
I could see the attempt to cover things up if it were old problems but they are covering up right up till this post.
Prosper can fix this problem easily anytime they want to:
(1) Issue a press release where they apologize to lenders for abrogating the LRA's quarterly sales provision and for their futile market-timing escapades with our loans. Fire or discipline whatever executive made this decision (was it jwitchel?).
(2) Bundle everything that was in the last sale and offer it up for bid. The bids will of course be lower. Sell the bundle at the best price. Calculate the difference between the prices, and pay that difference to lenders, with 7% interest. Preferably out of that executive's paycheck.
(3) Bundle up all the lates since then (has it been 3 more months?) and put it up for bid, and sell it at the market price.
(4) Provide lenders full disclosure about the bidding process so we can be assured that the lousy prices we're hearing are indeed market prices and not some lowball backroom deal.
(5) State that future debt sales will occur at 3 month intervals, and do it.
