This news is a week old, but I’ve been a little too busy to get it out. It seems like the SEC ordered a cease and desist. I have to admit that reading the legalese is not my specialty. So I don’t really know what it amounts to. If anyone wants to read it and interpret it for me, I’d appreciate it.

That’s not the only bad news for Prosper. Monday Prosper agreed to pay 20 states $1 million dollars. It seems you can follow the progress of this class action lawsuit on this blog.

In other news, Loanio has voluntarily decided to stop accepting lenders and borrowers. Presumably they’ve seen what’s going on with Prosper and what Lending Club has been through. This is why Zopa didn’t operate a pure P2P.

Sometimes I wish the US regulators that are going so hard after these P2P companies would spend more time preventing and fixing the economy.