[Chambo]

After now having invested money into loans on lending club, In my personal opinion I can't see the p2p aspect going away. Syndicating in their deals is super addicting and you can literally put a minimum of $25 into a deal so it's easy to bring the smallest of investors in. Also you can set up an IRA there or move your existing one to them and make an retirement fund out of syndicated loans. They've got a good thing going.

move over IRA? That is dangerous territory.

Sounds wonderful...until you have a couple defaults. Then these investors are all of a sudden ignorant, unsophisticated and were tricked. Try telling FINRA in an arbitration that investing retirement funds into a deal where merchant has 500 credit, 10 NSF's and a lien was a sound, responsible & suitable investment.

[Sean Cash]

move over IRA? That is dangerous territory.

Sounds wonderful...until you have a couple defaults. Then these investors are all of a sudden ignorant, unsophisticated and were tricked. Try telling FINRA in an arbitration that investing retirement funds into a deal where merchant has 500 credit, 10 NSF's and a lien was a sound, responsible & suitable investment.

Lending Club is already regulated by the SEC. Each loan is booked as a security and each security is issued with a prospectus about the deal. Each prospectus tells you about credit score, liens, income, and other stuff. It's the same thing as buying stock.

There are defaults but their loans are classified on a scale of A to G (G having the highest rate of return, highest risk, and highest default rate). Even class As have defaults, just fewer.

[Chambo]

Lending Club is already regulated by the SEC. Each loan is booked as a security and each security is issued with a prospectus about the deal. Each prospectus tells you about credit score, liens, income, and other stuff. It's the same thing as buying stock.

There are defaults but their loans are classified on a scale of A to G (G having the highest rate of return, highest risk, and highest default rate). Even class As have defaults, just fewer.

A to G rating worked out SO WELL for Standard & Poors and Lehman Brothers too....