Future of Finance is P2P as LendingClub Goes Public with $5.4B Valuation
Am thinking this needs watching... The idea of P2P lending sounds to me a lot like a new bubble.
Consolidating high interest personal loans then packaging the risk and selling it at some "calculated" price requires a lot of trust on the part of the buyer.
I don't see much of a difference between the housing bubble, which at the very least had an asset value. In this case, no Fannie or Freddie to ease the pain.
For sure, a new entry into the derivatives market. As of now, I don't see a connection to the easement of the Dodd Frank rules for banks, but this could be a factor later on.
From the IPO, looks like there must be more to this than meets the eye.
Early birds are doing pretty well... Started @ $15... currently @ $25.