"As peer-to-peer loans gain in popularity, so does oversight" by Eileen Ambrose, The Baltimore Sun | December 14, 2008
BALTIMORE - Peer-to-peer lending promised to be an alternative to traditional banks and credit cards for small borrowers. But this fledgling industry, which has been operating freely on the Internet, recently has come into regulators' sights.
Here's another one: The World's Best Banking System
No wonder USrael and their usurious Zionist bankers have a bug up the butt for Muslims!
Regulators argue that some lending sites essentially are selling investments that need to be registered. This has sidelined the largest peer-to-peer lending site, Prosper.com.
These the same regulators that allowed Wall Street to loot us all? Uh-huh!
The timing couldn't be worse for consumers, with many banks tightening their standards and making it difficult for even some good credit risks to get a loan.
So WHERE did all that BAILOUT MONEY GO because we know it didn't go into loans and it didn't go for mortgages!! Hey, banker! Why your POCKETS BULGING?
But as much of a headache as regulation can be, it might be what the industry needs to take it to a higher level.
Yeah, the LOOTING LEVEL!!!
Regulation can bring greater transparency and protections for investors who provide the money for loans. And if these investors feel more comfortable, they are more likely to pour money into new loans.
The MSM is really something, aren't they? Yeah, the guys who didn't see (or didn't want to see) the highway robbery taking place in front of their eyes re going to keep your money safe!
Peer-to-peer lending is only a few years old. These Internet sites match people who need a loan for, say, $1,000 to $25,000, with dozens or hundreds of strangers willing to lend amounts as small as $50. Lending sites act as the go-between, collecting borrowers' payments and forwarding them, along with interest, to the various lenders....
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But investor Eric Di Benedetto says regulation won't crimp the industry. The Californian has been investing his family's $1 million in retirement funds with Lending Club since it launched in 2007. Even though his large portfolio of loans had some defaults, he figures his annual return has been about 12 percent.
Di Benedetto sees regulation as a natural next step for the industry. "It provides an additional level of security and transparency," he says. He predicts new peer-to-peer sites will continue to crop up, and some of those new entrants might be traditional banks.
Another avenue and solution ruined!
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