Comments on: Prosper And Other P2P Lenders Get Squeezed By The Credit Crunch http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/ Startup and Technology News Fri, 27 Nov 2009 06:29:24 -0800 hourly 1 By: Old Line Banker Puts $1 Million Into P2P Lender Prosper http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-3088125 Old Line Banker Puts $1 Million Into P2P Lender Prosper Tue, 10 Nov 2009 23:03:51 +0000 http://www.techcrunch.com/?p=23412#comment-3088125 [...] U.S with its launch in 2006. Unfortunately, the startup hit a rough patch last year when the SEC stopped all lending on the platform because the company didn’t register as a seller of securities. [...] [...] U.S with its launch in 2006. Unfortunately, the startup hit a rough patch last year when the SEC stopped all lending on the platform because the company didn’t register as a seller of securities. [...]

]]> By: The Far Edge » Blog Archive » P2P Lending Marketplace Prosper Gets Off The Bench, Debuts Open Market Initiative http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2722745 The Far Edge » Blog Archive » P2P Lending Marketplace Prosper Gets Off The Bench, Debuts Open Market Initiative Wed, 29 Apr 2009 21:24:12 +0000 http://www.techcrunch.com/?p=23412#comment-2722745 [...] that launched way back in May 2006, has found itself on a rocky road so far. Last October, Prosper suspended new lending in order to register with the Securities and Exchange Commission to create a secondary marketplace [...] [...] that launched way back in May 2006, has found itself on a rocky road so far. Last October, Prosper suspended new lending in order to register with the Securities and Exchange Commission to create a secondary marketplace [...]

]]> By: P2P Lending Marketplace Prosper Gets Off The Bench, Debuts Open Market Initiative | The Good NET Guide http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2722080 P2P Lending Marketplace Prosper Gets Off The Bench, Debuts Open Market Initiative | The Good NET Guide Wed, 29 Apr 2009 14:29:19 +0000 http://www.techcrunch.com/?p=23412#comment-2722080 [...] that launched way back in May 2006, has found itself on a rocky road so far. Last October, Prosper suspended new lending in order to register with the Securities and Exchange Commission to create a secondary marketplace [...] [...] that launched way back in May 2006, has found itself on a rocky road so far. Last October, Prosper suspended new lending in order to register with the Securities and Exchange Commission to create a secondary marketplace [...]

]]> By: Lending Club raises $12M more for peer-to-peer loans » VentureBeat http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2660960 Lending Club raises $12M more for peer-to-peer loans » VentureBeat Thu, 19 Mar 2009 19:36:44 +0000 http://www.techcrunch.com/?p=23412#comment-2660960 [...] Of course, with last fall’s market implosion, the regulatory environment around these sites has changed as well. Lending Club actually shut down for six months last year (making that $20 million number more impressive, by the way) for the required “quiet period” after registering with the Securities and Exchange Commission. Competing sites, such Prosper, have had to do the same. [...] [...] Of course, with last fall’s market implosion, the regulatory environment around these sites has changed as well. Lending Club actually shut down for six months last year (making that $20 million number more impressive, by the way) for the required “quiet period” after registering with the Securities and Exchange Commission. Competing sites, such Prosper, have had to do the same. [...]

]]> By: Lending Club Gets A $12 Million Credibility Boost http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2660388 Lending Club Gets A $12 Million Credibility Boost Thu, 19 Mar 2009 14:24:43 +0000 http://www.techcrunch.com/?p=23412#comment-2660388 [...] summer of that year. Then the economy collapsed and Lending Club along with other P2P lenders were heavily affected. The SEC suspended loan activities one of Lending Club’s main competitors, Prosper, at the [...] [...] summer of that year. Then the economy collapsed and Lending Club along with other P2P lenders were heavily affected. The SEC suspended loan activities one of Lending Club’s main competitors, Prosper, at the [...]

]]> By: Don’t Apply at Pertuity Direct http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2604683 Don’t Apply at Pertuity Direct Sat, 24 Jan 2009 17:43:11 +0000 http://www.techcrunch.com/?p=23412#comment-2604683 [...] Prosper And Other P2P Lenders Get Squeezed By The Credit Crunch [...] [...] Prosper And Other P2P Lenders Get Squeezed By The Credit Crunch [...]

]]> By: SEC Outlines Its Reasoning For Shutting Down P2P Lender Prosper | News Information Technology http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2547615 SEC Outlines Its Reasoning For Shutting Down P2P Lender Prosper | News Information Technology Wed, 26 Nov 2008 23:27:43 +0000 http://www.techcrunch.com/?p=23412#comment-2547615 [...] month, peer-to-peer lender Prosper stopped all new lending on its site because of scrutiny by the SEC. Prosper agreed to register under the Securities Act, a process which can take [...] [...] month, peer-to-peer lender Prosper stopped all new lending on its site because of scrutiny by the SEC. Prosper agreed to register under the Securities Act, a process which can take [...]

]]> By: SEC Outlines Its Reasoning For Shutting Down P2P Lender Prosper | American News World - News And Technology http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2547267 SEC Outlines Its Reasoning For Shutting Down P2P Lender Prosper | American News World - News And Technology Wed, 26 Nov 2008 17:01:52 +0000 http://www.techcrunch.com/?p=23412#comment-2547267 [...] month, peer-to-peer lender Prosper stopped all new lending on its site because of scrutiny by the SEC. Prosper agreed to register under the Securities Act, a process which can take [...] [...] month, peer-to-peer lender Prosper stopped all new lending on its site because of scrutiny by the SEC. Prosper agreed to register under the Securities Act, a process which can take [...]

]]> By: SEC Outlines Its Reasoning For Shutting Down P2P Lender Prosper http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2547236 SEC Outlines Its Reasoning For Shutting Down P2P Lender Prosper Wed, 26 Nov 2008 16:23:01 +0000 http://www.techcrunch.com/?p=23412#comment-2547236 [...] month, peer-to-peer lender Prosper stopped all new lending on its site because of scrutiny by the SEC. Prosper agreed to register under the Securities Act, a process which can take [...] [...] month, peer-to-peer lender Prosper stopped all new lending on its site because of scrutiny by the SEC. Prosper agreed to register under the Securities Act, a process which can take [...]

]]> By: YadYap - P2P Payday Loans? http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2522871 YadYap - P2P Payday Loans? Tue, 04 Nov 2008 00:53:15 +0000 http://www.techcrunch.com/?p=23412#comment-2522871 [...] Prosper And Other P2P Lenders Get Squeezed By The Credit Crunch [...] [...] Prosper And Other P2P Lenders Get Squeezed By The Credit Crunch [...]

]]> By: go4reward http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2510567 go4reward Wed, 22 Oct 2008 19:35:48 +0000 http://www.techcrunch.com/?p=23412#comment-2510567 Prosper is stopping its lending process now because of some new SEC regulations. Prosper is stopping its lending process now because of some new SEC regulations.

]]> By: Peer lending going nowhere? — Vad NU! http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2508931 Peer lending going nowhere? — Vad NU! Tue, 21 Oct 2008 13:52:06 +0000 http://www.techcrunch.com/?p=23412#comment-2508931 [...] claim that peer lending services such as Prosper, Zopa and Lending Club are going literally nowhere due to the financial [...] [...] claim that peer lending services such as Prosper, Zopa and Lending Club are going literally nowhere due to the financial [...]

]]> By: La banca 2.0 y las financiaciones P2P http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2508895 La banca 2.0 y las financiaciones P2P Tue, 21 Oct 2008 13:19:15 +0000 http://www.techcrunch.com/?p=23412#comment-2508895 [...] | Techcrunch Más información | Rosa J.C. trackback ¿Recomendarías este post? Más noticias [...] [...] | Techcrunch Más información | Rosa J.C. trackback ¿Recomendarías este post? Más noticias [...]

]]> By: PapaSteve http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2506632 PapaSteve Sun, 19 Oct 2008 04:05:36 +0000 http://www.techcrunch.com/?p=23412#comment-2506632 I'm eager to find new credit qualified people to lend to so I can recover some of the my stock market losses over the next few years. So far, my Prosper investment has not made money, but it's "less of a loss" than my mutual funds. P2P lending is here to stay. I’m eager to find new credit qualified people to lend to so I can recover some of the my stock market losses over the next few years.
So far, my Prosper investment has not made money, but it’s “less of a loss” than my mutual funds.
P2P lending is here to stay.

]]> By: Guest Post: Social Actions Roundup 13 - Conference Extravaganza: Social Capital Markets, The Feast + MobileActive08 « CauseWired http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2506578 Guest Post: Social Actions Roundup 13 - Conference Extravaganza: Social Capital Markets, The Feast + MobileActive08 « CauseWired Sun, 19 Oct 2008 01:55:33 +0000 http://www.techcrunch.com/?p=23412#comment-2506578 [...] TechCrunch: Prosper And Other P2P Lenders Get Squeezed By The Credit Crunch [...] [...] TechCrunch: Prosper And Other P2P Lenders Get Squeezed By The Credit Crunch [...]

]]> By: Claus http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2506399 Claus Sat, 18 Oct 2008 20:42:45 +0000 http://www.techcrunch.com/?p=23412#comment-2506399 @ David 19, I believe. They have announced to add more states over the next weeks. Furthermore residents of all states can buy notes at the Lending Note Trading Platform (that's strange, is it not). Claus Lehmann Editor http://www.p2p-banking.com @ David

19, I believe. They have announced to add more states over the next weeks.
Furthermore residents of all states can buy notes at the Lending Note Trading Platform (that’s strange, is it not).

Claus Lehmann
Editor
http://www.p2p-banking.com

]]> By: Claus http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2506397 Claus Sat, 18 Oct 2008 20:38:42 +0000 http://www.techcrunch.com/?p=23412#comment-2506397 Prosper is a bad example, for they have had problems before the credit crunch. Their growth stopped after lenders became wary because of the high Prosper default rates. And know Prosper goes into the quiet period with bad timing. Lending Club on the other hand showed exceptional growth before entering their quiet period in April. And now they are the first major p2p lending service with a secondary market. Even more important their default rates are much lower then Prosper's Could allow them to catch up with Prosper counting by loan volume (even so it's not directly comparable, because Lending Club allows only lenders with high credit grades. Internationally especially the microfinance concepts (Kiva, MyC4 - see http://www.wiseclerk.com/myc4-loans for stats) are booming, furthermore p2p lending is expanding in some national markets (UK, Italy, Germany - see http://www.wiseclerk.com/smava for stats, Poland) while failing in others. Several industry insiders still consider the credit crunch to be the best thing that could have happened to the p2p lending players. With people distrusting banks they have windfall (volume) profits - Zopa UK already reported a large influx of lenders and borrowers. And in many markets new platforms are launched (e.g. Maneo in Japan). Not all will thrive, but those that manage to control default rates (again see Zopa UK with 0.04%) will grow to considerable size. Gartner's prediction for 2010 seem a bit optimistic to me though Claus Lehmann Editor http://www.p2p-banking.com Prosper is a bad example, for they have had problems before the credit crunch. Their growth stopped after lenders became wary because of the high Prosper default rates. And know Prosper goes into the quiet period with bad timing.

Lending Club on the other hand showed exceptional growth before entering their quiet period in April. And now they are the first major p2p lending service with a secondary market. Even more important their default rates are much lower then Prosper’s
Could allow them to catch up with Prosper counting by loan volume (even so it’s not directly comparable, because Lending Club allows only lenders with high credit grades.

Internationally especially the microfinance concepts (Kiva, MyC4 – see http://www.wise....com/myc4-loans for stats)
are booming, furthermore p2p lending is expanding in some national markets (UK, Italy, Germany – see http://www.wiseclerk.com/smava for stats, Poland) while failing in others.

Several industry insiders still consider the credit crunch to be the best thing that could have happened to the p2p lending players. With people distrusting banks they have windfall (volume) profits – Zopa UK already reported a large influx of lenders and borrowers.

And in many markets new platforms are launched (e.g. Maneo in Japan). Not all will thrive, but those that manage to control default rates (again see Zopa UK with 0.04%) will grow to considerable size. Gartner’s prediction for 2010 seem a bit optimistic to me though

Claus Lehmann
Editor
http://www.p2p-banking.com

]]> By: A strange month for the financial services industry; Social Lending is no exception « CommunityLend blog http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2505593 A strange month for the financial services industry; Social Lending is no exception « CommunityLend blog Fri, 17 Oct 2008 21:38:50 +0000 http://www.techcrunch.com/?p=23412#comment-2505593 [...] how does one sort out all of these announcements?  Is it, as TechCrunch and the New York Times have recently suggested, that the international “credit crunch” is [...] [...] how does one sort out all of these announcements?  Is it, as TechCrunch and the New York Times have recently suggested, that the international “credit crunch” is [...]

]]> By: Internetszene.de http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2505076 Internetszene.de Fri, 17 Oct 2008 13:43:48 +0000 http://www.techcrunch.com/?p=23412#comment-2505076 <strong>Plattformen für P2P-Kredite & die Finanzkrise...</strong> Es wurde schon mehrfach gemutmasst, dass die P2P-Kreditplattformen wie Smava möglicherweise von der Finanzkrise profitieren könnten. Getreu dem Motto “Wenn die Banken kein Geld mehr verleihen, freuen sich die alternativen Anbieter.” Sowei... Plattformen für P2P-Kredite & die Finanzkrise…

Es wurde schon mehrfach gemutmasst, dass die P2P-Kreditplattformen wie Smava möglicherweise von der Finanzkrise profitieren könnten. Getreu dem Motto “Wenn die Banken kein Geld mehr verleihen, freuen sich die alternativen Anbieter.” Sowei…

]]> By: The Wallet : Loose Change: 10/17/08 http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2504992 The Wallet : Loose Change: 10/17/08 Fri, 17 Oct 2008 12:13:16 +0000 http://www.techcrunch.com/?p=23412#comment-2504992 [...] even super new and hip peer-to-peer lending sites are free from the claws of the credit crunch. [TechCrunch] -Tracing how finances have changed the eating habits of six families around the world. [BBC] -The [...] [...] even super new and hip peer-to-peer lending sites are free from the claws of the credit crunch. [TechCrunch] -Tracing how finances have changed the eating habits of six families around the world. [BBC] -The [...]

]]> By: Colin Henderson http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2504809 Colin Henderson Fri, 17 Oct 2008 06:43:23 +0000 http://www.techcrunch.com/?p=23412#comment-2504809 RE: "Everybody is tightening the pockets and watch their backs…" The general theme here is an easy one to follow, but its worthwhile to delve into the facts. If the conclusion remains the same so be it, but to the issues at hand: 1. The regulatory framework 2. Prospers credit policies 3. The banking crisis These three matters are mutually exclusive and need to be thought through carefully. Its too easy to amalgamate them and form a conclusion as the person above did, but the reality is different. The assumption that "Everybody is tightening the pockets and watch their backs…" assumes an anarchistic system where everyone is trying to save themselves." We do not live in an anarchist society. The current banking system crisis (3. above) is driving many to think that way, but now is the time to close your eyes and think out 6 months, 6 years - what will be the situation then? Prosper have moved from an entirely open borrower availability to increased restrictions and clearly their approach is outside the norm of the consequential social lenders. Lastly the SEC and other regulatory authorities have been caught off guard by social lending, so some catch up is necessary. In total there is much going on here, so lets not through the baby out with the bathwater. Lets stick to facts, and individual situations, and see where social lending develops. RE: “Everybody is tightening the pockets and watch their backs…”

The general theme here is an easy one to follow, but its worthwhile to delve into the facts. If the conclusion remains the same so be it, but to the issues at hand:

1. The regulatory framework
2. Prospers credit policies
3. The banking crisis

These three matters are mutually exclusive and need to be thought through carefully. Its too easy to amalgamate them and form a conclusion as the person above did, but the reality is different.

The assumption that “Everybody is tightening the pockets and watch their backs…” assumes an anarchistic system where everyone is trying to save themselves.” We do not live in an anarchist society.

The current banking system crisis (3. above) is driving many to think that way, but now is the time to close your eyes and think out 6 months, 6 years – what will be the situation then?

Prosper have moved from an entirely open borrower availability to increased restrictions and clearly their approach is outside the norm of the consequential social lenders.

Lastly the SEC and other regulatory authorities have been caught off guard by social lending, so some catch up is necessary.

In total there is much going on here, so lets not through the baby out with the bathwater. Lets stick to facts, and individual situations, and see where social lending develops.

]]> By: David http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2504775 David Fri, 17 Oct 2008 05:32:18 +0000 http://www.techcrunch.com/?p=23412#comment-2504775 Lending Club may be back, but if you read the fine print, you'll notice that it's now restricted to only 16 states. Even large states like California and Texas are left out. Lending Club may be back, but if you read the fine print, you’ll notice that it’s now restricted to only 16 states. Even large states like California and Texas are left out.

]]> By: Evan http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2504762 Evan Fri, 17 Oct 2008 04:53:12 +0000 http://www.techcrunch.com/?p=23412#comment-2504762 Wow. It really IS surprising that TechCrunch jumped right in on the band wagon with NYTs to turn their backs on the P2P Lending world. Yes, the industry seems to be going through lots of changes, but the concept is just maturing... not going away. C|net seems to have done a better job than TechCrunch this time: http://news.cnet.com/8301-17939_109-10068507-2.html Wow.
It really IS surprising that TechCrunch jumped right in on the band wagon with NYTs to turn their backs on the P2P Lending world. Yes, the industry seems to be going through lots of changes, but the concept is just maturing… not going away.

C|net seems to have done a better job than TechCrunch this time:
http://news.cne...10068507-2.html

]]> By: » Peer-to-peer lending is not dead yet http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2504692 » Peer-to-peer lending is not dead yet Fri, 17 Oct 2008 03:12:32 +0000 http://www.techcrunch.com/?p=23412#comment-2504692 [...] lending is not dead yet Stories this morning in the New York Times, TechCrunch, and Valleywag are spelling the doom of the peer-to-peer lending business. Battered by high default [...] [...] lending is not dead yet Stories this morning in the New York Times, TechCrunch, and Valleywag are spelling the doom of the peer-to-peer lending business. Battered by high default [...]

]]> By: Tom http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch/comment-page-1/#comment-2504686 Tom Fri, 17 Oct 2008 03:05:29 +0000 http://www.techcrunch.com/?p=23412#comment-2504686 The link in your post to the NYT's article is broken. Here's the correct link: http://www.nytimes.com/2008/10/16/technology/start-ups/16peer.html The link in your post to the NYT’s article is broken. Here’s the correct link:

http://www.nyti...ups/16peer.html

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