[paulsutter]

Banks haven't proven too skilled in estimating risk (see 2007). The average Lending Club lender is surely worse than the banks, but the best ones are surely better.

Net it all out and hopefully we get a Darwinian marketplace for lenders, lenders who don't need acres of employees preparing powerpoints for each other in class A office space.

Of course, the true measure of estimating risk is hidden until a crisis occurs. Interesting to see where it all ends up.

[jldugger]

> Banks haven't proven too skilled in estimating risk (see 2007).

Arguably, they demonstrated that you can accept a lot of risk and then if things go wrong the Fed will bail you and your creditors out. Not _quite_ the same thing as simply underestimating risk.