Madden v Midland Funding Some of you may have heard about this case and that it may/might/could/is already affecting marketplace lenders. Miss Madden had a Bank of America credit card and defaulted on her payments. Midland Funding is a debt buyer and collection agency based in San Diego. Midland bought the debt of Miss Madden, … Read moreShould Retail Investors Care About Madden v Midland Funding case?
You may have heard of the Lending Club shakeup in their executive team last week. The shakeup came from the fraud the former executives perpetrated on a small subset of loans. In response to these actions, the new CEO Scott Sanborn wrote a letter to larger investors about what happened, what they are doing, and how … Read moreLending Club’s Letter to Institutional Investors
Lending Club CEO Renaud Laplanche, generally regarded as the face of marketplace/p2p lending has resigned his position at Lending Club. The resignation is based on the discovery that $22 million worth of loans were knowingly sold to an investor when the loans did NOT meet that investors buying criteria. It’s yet to be seen if … Read moreLending Club CEO Resigns
Happy New Year to all. I haven’t tabulated my own returns for 2015 yet but I thought it would be a good idea to take a look at how the little guy/retail investor did this year. Each and every year, more and more lending platforms are coming on line yet choices for retail investors are … Read moreHow Did the Retail Investor do in 2015?
Recently it has come to light that Prosper issued a loan through their online marketplace to the husband of the husband/wife team that were the San Bernardino shooters. I was asked to comment and help clarify some issues for a story on the excellent financial news site TheStreet.com. In the process of helping with this … Read moreIn Defense of Prosper.com
Platform risk is something mentioned here often yet rarely discussed in detail. Now we have an example of why thinking about the platform risk (the risk that the platform itself will go out of business) is something we need to think about and consider when it comes to investing on new platforms. Thanks for the … Read morePlatform Risk: What Happened to Trustbuddy?
The 3 largest Bitcoin based lending sites: BTCJam, BitLendingClub aka Loanbase, and Bitbonds, combined originate around $1.5 million worth of Bitcoin based loans per month. While this number is small, the industry is fast growing and is an important part of developing the Bitcoin ecosystem as a whole as lending/investing alternatives for Bitcoin operating … Read moreThe Bitcoin Lenders’ Bill of Rights
MSB is the shorthand for a money service business. In the US, MSBs are overseen by FINCEN (the Financial Crimes Enforcement Network), which is a part of the US Dept of Treasury. FINCEN’s primary goal is to take the lead in anti money laundering (AML) efforts and enforcement. MSBs have a 2nd level of … Read moreThe MSB: Why I Don’t Lend to US LBC traders and you shouldn’t either
This past weekend was the 2nd annual Cryptolina conference. This time, it was in Charlotte at the beautiful Spirit Square in a theater that was formerly a church. It was a fantastic conference with some great lessons. Here are some things I learned. North Carolina is a Bitcoin battleground As we have seen in NY … Read moreWhat I Learned at Cryptolina
This last month saw some huge news from the p2plending/marketplace lending world. I thought I would outline some of those stories, their impact and my thoughts on them here. Story 1: Goldman Sachs enters the business The New York Times posted a story about the news that huge investment bank Goldman Sachs is getting into … Read more3 Big News Stories in P2PLending: June 2015