Prosper's Chris Larsen Steps Down as CEO

Bank technology

Five Years On, Prosper Still Trying to Serve Risky Borrowers

After rethinking its open-door policy on a number of occasions, Prosper Marketplace has decided again to drop its high-risk category of borrowers, only to bring it back a month later.

By Sara Lepro

June 2

Prosper Marketplace Inc.'s Chris Larsen is stepping down as chief executive. He remains the San Francisco company's chairman.

Prosper, the first person-to-person online loan facilitator in the U.S., has hired Dawn Lepore as its interim CEO. Lepore was previously chairman and CEO of drugstore.com and vice chairman of Charles Schwab Corp.

"Now is the time to embrace the next phase of the company's evolution," Larsen said in a press release. "As chairman, I look forward to working closely with the executive team to build a truly innovative consumer credit company."

Before launching Prosper in 2006, Larsen headed E-Loan Inc.

Eric Schwartz, a private-equity investor and veteran of Goldman Sachs, is joining Prosper's board, the company also said.

Daniel Wolfe

Content Director, Payments and Credit Unions, American Banker

MORE FROM AMERICAN BANKER

Payments

American Express' consumer spending thrives, but small business lags

Powered by younger, affluent cardholders, American Express saw a 6% increase in billed business during the first quarter, while weak growth still plagues its small-business segment.

By Kate Fitzgerald

1h ago
Politics and policy

Is the Fed board eroding regional Fed banks' independence?

For the better part of the past decade, the Federal Reserve Board in Washington has played a more active role in presidential searches by regional reserve banks. The shift seems to have made the system more diverse, but some argue it's at the expense of regional bank independence.

By Kyle Campbell

2h ago
Industry News

A love for data jump-started the career of Citizens' chief experience officer: The Climb

Beth Johnson, a self-described math geek, is driving the bank's ESG strategy and training its employees to keep pace with industry trends.

By Mary Ellen Egan

4h ago
Earnings

Key is downbeat on U.S. economy, upbeat on its own outlook

The Cleveland-based bank is projecting steady growth in net interest income even as credit losses remain manageable. But Chairman and CEO Chris Gorman also said that he thinks a recession is likely.

By John Reosti

April 18
Commercial lending

Texas Capital reports 53% jump in criticized loans, plans for more

The first-quarter increase involved commercial real estate loans, including some problematic multifamily loans and an office credit, but none of the criticized loans were to consumers, officials at the Dallas company say. Further CRE deterioration is anticipated.

By Allissa Kline

April 18
Earnings

How loan-hungry Ally is preparing for the Fed's upcoming speed limit

The Detroit-based company is exploring ways to make more consumer auto loans without running afoul of stricter capital standards that are expected from the Federal Reserve. Possible approaches include more securitizations and the use of credit risk transfers.

By Polo Rocha

April 18

	About Daniel
twitter	wolfewriter
mailto	daniel.wolfe@arizent.com
linkedin	daniel-wolfe-5947087