Lending Club, the "peer-to-peer" lending company who filed for an initial public offering today, might not be what one might assume, points out Bloomberg View’s Matt Levine.
Peer-to-peer lending offer a low risk model
You could logically assume that a peer-to-peer lending company would connect those who want to lend money with those who lend the money and take a fee for playing match maker. This is clearly the lowest risk model.
Not so, points out Levine:
“Lending Club ends up standing between you and me not just as an agent -- setting up my loan to you -- but as a principal. I lend money to Lending Club and can look only...
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