This past week, the Square IPO, with its 25% pre-launch price reduction and subsequent strong rally, dominated fintech headlines.  But there were plenty of other notable stories, including Victory Park Capital and KKR closing their securitization of Avant loans, DRB and SoFi securing ratings for forthcoming issuances, as well as Earnest’s Series B equity raise:

  • FDIC Throws Water on the Marketplace Lending Phenomenon (Client Alert, Pepper Hamilton LLP, 11/16/15) Details on the impact of the FDIC’s Nov. 6th letter warning banks that all P2P loans purchased must conform to the bank’s own underwriting standards, among other requirements.  Banks are increasingly large purchasers of P2P loans and the diligence requirements will likely increase costs of doing so.  Certainly reinforces the need for the kind of collateral and risk assessment tools PeerIQ has developed.

Wish everyone a Happy Thanksgiving this week!