Wells (WFC) last month made news by barring its employees from making loans on peer-to-peer platforms like Prosper and Lending Club. Though growing rapidly, the P2P lending business is but a fraction of the amount of credit extended by Wells Fargo, but the bank's move showed the upstarts are clearly on its mind. Former Morgan Stanley CEO John Mack is on the board of Lending Club and Prosper is headed by former Wells prime brokerage chief Stephan Vermut.
A fresh review by Wells found loans made by its staff were not "inconsistent with [its] code of ethics ... The P2P market is not uniform and is evolving and expanding rapidly. We will continue to review our guidance as the market evolves.”