Peer-to-peer lending sees exponential growth

By Penny Yi Wang for Medill News Service

In the past few years, consumers disillusioned with tight-fisted banks have jumped on the peer-to-peer lending bandwagon.

When the Great Recession hit, banks suffered big losses as borrowers defaulted on loans they had taken out during the economy’s long upturn. In response, lenders have drastically tightened their lending requirements. As a result, many borrowers with anything less than stellar credit now can’t qualify for traditional bank loans.

But non-wealthy Americans still need loans from time to time. And as bankers have turned stingy, borrowers have increasingly turned to alternative online lending platforms, such as Lending Club and Prosper Marketplace.

directlending
Third quarter lending more than doubled at Lending Club and Prosper from a year-ago period, up 37-fold from 2010.

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Not an average business

Illinois will gain $17.5 million in the process once business operations start next year. The Illinois River was quiet on June 15th, 2006, until a speedboat slammed into a barge. Tammy Warnke, 30 at the time, she lost her ability to talk and forgot how to walk, because of severe brain injuries as a result […]

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CAT earnings bulldoze past forecasts

By Penny Yi Wang for Medill News Service Shares of Caterpillar Inc. jumped after the manufacturing giant, helped by a surge in North American sales that more than offset a slowdown in international market, reported third-quarter earnings that dramatically surpassed Wall Street expectations. Net income for the Peoria-based heavy equipment maker inched up less than one […]

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