Prosper people-to-people lending on CBS Evening News

[jupiterdingo]

Sloppy sloppy sloppy reporting. Or deliberately deceptive. Prosper loans are made from a bank in Utah, Prosper "lenders" basically collateralize the loans. With fractional reserve lending, that Utah bank can lend out over ten times the cash it takes in from the Prosper "lenders." While Prosper "lenders" potentially can get a pretty good return, it's a small fraction of what that Utah bank can make with the money it collects from those "lenders." Google "fractional reserve lending."

[simbared]

Sounds good, but buyer (lender) beware.

[tyrell92]

Good! Sounds good.