Citigroup is no longer buying loans off the Prosper Marketplace platform and repackaging them into securities, a person familiar with the matter said.
The person asked not to be identified because the matter is private.
Citigroup was one of the first major U.S. banks to link up with peer-to-peer lenders like Prosper, which matches borrowers with individuals who want to fund them. The agreement gave the New York-based company access to Prosper's loans to securitize, including a deal last year of about $377 million of bonds.
Rob Julavits, a spokesman at Citigroup, declined to comment on the end of the Prosper partnership. Sarah Cain, a spokeswoman for San Francisco-based Prosper, said the company doesn't comment on its relationship with customers.
Reuters reported the
