If you thought things would quiet down, you were wrong. Here's the latest...
The SEC has filed cease and desist proceedings against Prosper. According to the filing, "The loan notes issued by Prosper pursuant to this platform are securities and Prosper, from approximately January 2006 through October 14, 2008, violated Sections 5(a) and (c) of the Securities Act..." Fred93 wrote some very insightful commentary about the dilemma last week. There is also an ongoing discussion on Prospers.org.
Now, to top things off, it appears Loanio will also halt operations. Wiseclerk has a statement from Loanio's CEO, "effective immediately Loanio will no longer be accepting registration from lenders or borrowers." There is no announcement on Loanio's website yet.
Despite the troubles of Prosper and Loanio (and perhaps partly because of it), Lending Club is doing very well. They are open for borrowers from all states and continue to add lending on a state-by-state basis. Here is the latest map, from Lending Club's blog, showing the states who are eligible to lend on Lending Club. The most recent addition is California.
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2 comments:
re: "Despite the troubles of Prosper and Loanio .. "
I would categorise it as a failure to accept reality by the participants. At least in the US, Canada, and Australia, p2p lending is regulated under securities regime, and that has been clear for many months now.
The larger question for me, lies in the UK, France and other countries - will the regulators in those countries stand still or will they follow the same approach.
Not everyone can participate at Lending Club....
Scroll down HERE on Foliofn FAQ:
NOTE TRADING - Who can participate? Any lender who is a registered member at Lending Club can participate, but at this moment, those in the District of Columbia, Maryland, Ohio, Oregon, Texas, or Vermont are not eligible to become trading members.
In other words, these states can't participate, period.
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