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Opinion
Matt Levine

Lending Club Can Be a Better Bank Than the Banks

If Lending Club were a bank, it would look like a risky bank. Fortunately it's not a bank.

Lending Club, the big peer-to-peer lending company, filed for an initial public offering today. Here's how I vaguely imagined that Lending Club worked, before I read the registration statement:

None of that is exactly wrong, but here is a more accurate picture: