As for Lending Club, this appeared on their initial homepage:
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Financial Innovation
The San Francisco company, which made nearly $100 million last year, is hoping to seize on the success of the online lending industry as it grows into a robust alternative to traditional loans, and validate the industry as a high-tech, quicker version of bank lending that is here to stay.
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But Google Finance shows that the company had a net loss of $32 million, and an accumulated deficit of $80+ million on its balance sheet.
Now that’s a quote from a newspaper, not directly from the company. But the way they feature it right on the front of their home page, and not even close to accurate, makes me mistrust them.
Also the whole idea of some start up kids with a “P2P platform” outsmarting banks at consumer lending seems dumb.
