Comments on: Lending Club Shuts Down (Temporarily?)

By: LoanRanger

LoanRanger — Mon, 23 Jun 2008 17:50:12 +0000

I got just got into Lending Club 2 weeks before the “quiet period”. I view their decision to get regulated as very beneficial. They are getting prepared for the future and in my opinion will be leading the pack.

I only hope this won’t take too long. I’m losing money by keeping excess funds in a crappy bank account.

By: Ugly American

Ugly American — Thu, 01 May 2008 16:50:06 +0000

I don’t the management but my guess is this:

In order to create a liquid secondary market for loan shares, they should be registered as securities.

Such an action would increase many people’s willingness to lend because they wouldn’t be so locked in for the 3 year term.

eg – I lend $10K out and a year later, I need major medical care. Right now it’s very hard to get that money out but if there was a liquid secondary market, I could sell off my portfolio early.

By: www.P2P-Loans.com

www.P2P-Loans.com — Fri, 25 Apr 2008 21:11:25 +0000

Facinating development. I hope they are not in any financial trouble as I think it’s very positive for all P2P-Lending sites to remain healthy as this market still remains in the “evangelical” phase of development. I do not currently have a LendingClub account, but I was about to open one… I’ll stand pat until this sorts itself out.

By: JJ Hornblass

JJ Hornblass — Wed, 09 Apr 2008 16:49:35 +0000

Kind of amazing that this is taking place at Lending Club just as it receives a nomination for a 2008 Webby Award. Long-term, P2P lending will be a challenged. There are too many providers right now, and if the lending volume ever increases to a notable level, mainstream banks will push out the upstarts.

By: Lending Club Quiet Period Announcement: A Blog RoundUp | Personal Loan Portfolio

Wed, 09 Apr 2008 12:40:28 +0000

[...] Peer-Lend commented on the uncertainty of the meaning of the communication: There has been a large amount of speculation recently in many corners that the P2P Lending models might be subject to some legal uncertainty regarding whether the loans should be classified as securities… The speculation has primarily been concerned with who, in fact, owns the loans (notes), and how exactly that ownership [is transferred]…. [...]

By: Craig

Craig — Tue, 08 Apr 2008 20:25:16 +0000

I got the same message and was in the process of getting my account verified. I was still 1 day away from supplying them with my money. What do you think is going to happen? If they get regulated will that bring down the interest rates and make them more competitive with banks and totally ruin this great idea?