Prosper CEO Chris Larsen and Lending Club COO John Donovan to Testify Before California Legislature on Peer-to-Peer Lending

Posted by on Feb 1st, 2010

Prosper CEO Chris Larsen and Lending Club COO John Donovan will be testifying in a hearing before the California state-legislature on February 3rd, according to a press release from the office of California State Senator Ron Calderon.

California’s state senate banking committee is holding the hearing to review the niche industry from various perspectives and review state legislation relating to peer-to-peer lending.

According to the press release, the purpose of the hearing is to “examine P2P lending for the first time – what it is, how it works, how long it’s been around, what it’s used for, how it has evolved over time, and how some of its key architects envision it evolving in the future.  Industry chief executives, P2P site users, state regulators, and consumer advocates will address the committee about the state of the P2P industry today, and about their visions for the P2P industry of the future.  “

Senator Calderon commented favorably about the peer-to-peer lending industry in his office’s press release saying, “P2P lending offers a ray of hope to borrowers struggling under rising credit card rates and disappearing home equity.  It’s also a way for Californians to help other Californians, and at the same time earn healthy investment returns.” He continued, “California has been at the forefront of new technologies for decades, and the P2P lending market is just one more example of our innovation.  I look forward to hearing about the promise the industry holds for our state.”

During the hearing, California’s state legislature will be hearing from executives from both Lending Club and Prosper Marketplace. From Prosper Marketplace, CEO Chris Larsen and Ed Giedgowd, the company’s former general counsel will be presenting. From Lending Club, COO John Donovan and general counsel Jason Altieri will be presenting.

The committee will also hear from Priscilla Edwards a borrower that has made use of Prosper Marketplace and representatives from both Consumer Watchdog and Consumers Union. Preston DuFauchard, commissioner of California’s Department of Corporations, will be presenting on current regulation related to peer-to-peer lending in the state. There will also be a time for public comment following the presentations.

The hearing will be held at California’s state capital from 1:30 to 4:00 PM in Room 112.