zcommodore

Some time ago, it was announced that a group of lenders are considering suing Prosper for a variety of reasons.  I don't remember the details and I don't even know what the status of that potential lawsuit is.  I think they're idiots and here's why:  What they should have done, instead of hiring a lawyer to investigate whatever claims they have against Prosper is to hire a good lobbyist to Congress.

As most people who aren't living under a rock know, today Congress decided to pass a huge bill that bails out a bunch of banks that made bad loans for houses and stuff like that.  In addition, there is gobs of other pork that will keep taxpayers paying for this bill for who knows how long.  Obviously, when people make bad loans, the taxpayers will bail you out.

So, these lenders, if they had been smart, should have hired a lobbyist to get Prosper loans included in all this pork.  After all, the biggest reason why so many are going under has nothing to do with the fact that some people just can't/won't pay, and has everything to do with the fact that the economy is going south and so the taxpayers should pay to fix it.  Besides, we're only talking about a few million dollars.  It's not like this would increase the bill that much.  And one side benefit might have been the lenders could have gotten Prosper to help with the lobbyist fees.  Prosper would look good for getting lenders a better return on these bad investments and it would have provided a way for some of these disgruntled lenders to get back on the pro-Prosper bandwagon.  It would have been a win-win situation!

As it is, these Prosper lenders just screwed it up.  Now everyone is mad and Prosper isn't making as many loans as they could have.  Oh well....