Comments on: Lending Club “Goes Quiet” On Social Lending Temporarily http://www.centernetworks.com/lending-club-social-lending-sec Web 2 and Social Media News and Reviews Sat, 21 Nov 2009 01:50:56 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: James http://www.centernetworks.com/lending-club-social-lending-sec/comment-page-#comment-18313 James Wed, 30 Nov -0001 00:00:00 +0000 #comment-18313 I think they are positioning themselves to set up a secondary market to buy and sell loans. They've filed for a section D exemption with the SEC, which means they want to sell securities to the general public. The open question is one I think you have correctly mentioned, thats whether the company intentionally filed or did so because they were obliged to do so legally. The answer to this question will likely come after, or if, the SEC approves their loan. At this point they aren't saying much about the change over. Given their extreme growth though, I would suspect that LendingClub's management is probably pretty smart and would ultimately like to beat prosper and zopa. The only way to do this is to move the business model a step forward. That would be to create a secondary market for buying and selling loans. - Banks do this, but P2P lending currently does not. Why? It seems an obvious next step for a business looking to expand. But, as mentioned earlier, we won't know until the SEC finishes its review. Thanks, James I think they are positioning themselves to set up a secondary market to buy and sell loans. They’ve filed for a section D exemption with the SEC, which means they want to sell securities to the general public.

The open question is one I think you have correctly mentioned, thats whether the company intentionally filed or did so because they were obliged to do so legally. The answer to this question will likely come after, or if, the SEC approves their loan.

At this point they aren’t saying much about the change over.

Given their extreme growth though, I would suspect that LendingClub’s management is probably pretty smart and would ultimately like to beat prosper and zopa. The only way to do this is to move the business model a step forward. That would be to create a secondary market for buying and selling loans. –

Banks do this, but P2P lending currently does not. Why? It seems an obvious next step for a business looking to expand.

But, as mentioned earlier, we won’t know until the SEC finishes its review.

Thanks,

James

]]> By: Dave Litsky http://www.centernetworks.com/lending-club-social-lending-sec/comment-page-#comment-18550 Dave Litsky Wed, 30 Nov -0001 00:00:00 +0000 #comment-18550 L-O-L. Methinks that banking regulators were not happy with Lending Club's business model. L-O-L. Methinks that banking regulators were not happy with Lending Club’s business model.

]]> By: Jason http://www.centernetworks.com/lending-club-social-lending-sec/comment-page-#comment-18685 Jason Wed, 30 Nov -0001 00:00:00 +0000 #comment-18685 Probably not. Banks don't like loosing their customers. Probably not. Banks don’t like loosing their customers.

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