While I was asleep at the wheel on Friday, Lending Club came through with an update on their quiet period. When we last left them, I declared Lending Club is Dead. I admit that I was going for a sensational headline, but I still maintain that I wasn’t irrational. When a start-up company says that it is A) Unable to take new business, B) Unable to talk about why it can’t new business, and C) Unable to give a time-line for when business with resume, you have to wonder.
On Friday we learned that Lending Club Filed For SEC Registration. I didn’t see a hint of how long something typically waits to get through the SEC, so I’m going to be really conservative and go with a ballpark estimate of 14 years. (Again I’m being ridiculous, but with the last of information, that’s what I’m reduced to.)
I really like Lending Club – my loans are for the most part current. I say “for the most part” because I don’t want to jinx anything. It’s a little like how you don’t mention the no hitter when a pitcher hasn’t given up a hit for the first 7 innings. My portfolio at Lending Club is doing better than it was at Prosper. In fairness I took too much risk with Prosper, so by the time Lending Club came around, I was a good deal smarter about my loans.
Let’s hope that the SEC puts a rush on things to keep the industry moving. Without competition (Loanio, Loanio, come out wherever you are, the P2P lending space has been boring.