Sam Rose blogs about Prosper's lender rebellion.
In a cogent analysis of what's going wrong, what's overlooked is that there seemed to have been a change in the business model from the founders' Yunus-like "invest in your community" philosophy -- where the lenders DID know the borrowers (loan your child's school teacher enough money to move into the district) -- to an inappropriate scale-up that compromised a sound business model designed to contain these risks.
I suggest visiting the blog not only to read the post but because at the bottom there are links to other conversations online about these topics.
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