The last few weeks appear to suggest an up-tick in press coverage related to Prosper, P2P and SEC oversight. Perhaps it is a natural outgrowth of stories related to frozen credit markets, but it is interesting that several pieces are using strikingly similar language. One wonders if the spirit of the “quiet period” is still being maintained – or whether Prosper’s PR-machine is again cranking?
(The quotes emphasized below are reproduced just because I found them interesting and/or entertaining).
Businessweek (April 6, 2009) – P2P Lending: Problems and Promise
The Big Money (March 30, 2009) – The Government Crackdown on Peer-to-Peer Lending
The SEC registration and wrist-slapping may be the least of Prosper’s worries. It has set the terms for countless additional headaches. Shortly after the SEC’s cease-and-desist, a New York law firm filed a class-action lawsuit on behalf of Prosper lenders arguing they’d been hoodwinked into buying unregistered securities. That case goes to court on May 1. And in a separate case, Prosper has already paid $1 million to the North American Securities Administrators Association to try to head off state litigation.
FierceFinanceIT (April 1, 2009) – In Praise of Peer-to-Peer Lending
The Big Money (March 31, 2009) – Who Should Regulate Peer-to-Peer Lending?
Forbes.com (March 24, 2009) – Where Credit Still Flows
When the agency came after Prosper.com, the largest auction-style player, last year, Chief Executive Chris Larsen pushed back, arguing that given the site’s transparency, lenders knew full well the risks they were taking.
MaineBiz (April 6, 2009) – Perfect Strangers: Small businesses turn to online social lending for financing
Gerson Lehrman Group (April 5, 2009) – Financial Services Innovation and New Credit Sources Impeded by Regulation in the US
The Sovereign Society (April 17, 2009) – The Bank of Tomorrow