Good comments Rocco. Here is my take on the Whole Loan program. It serves large investors - that is completely true and I am fine with that. Why? Because without large investors Lending Club and Prosper would cease to exist. We can complain about the unlevel playing field all we like but until the large investors came along both sites could not produce enough loan volume to get even close to breakeven.
I'm sorry, but this argument is bunk to me. Without the small investors neither company would have made it off the ground either. Those three months without large investors, guess who kept prosper from bleeding even more red ink.
Yes, I'm all for big money helping grow the business, but obviously I don't want to be squeezed out in the process. I'm ready to see some good competition to LC and Prosper.