Pressing the SEC in the Midst of the Credit Crisis
Challenge: At the height of the credit crisis, the nation’s largest peer-to-peer lending company was abruptly shut down by the Securities and Exchange Commission (SEC). The company had facilitated $180 million in consumer and small business loans between hundreds of thousands of American borrowers and lenders over the Internet. They turned to the Podesta Group for help.
Strategy: Craft a clear and concise message for lawmakers that highlighted the SEC’s antiquated and bureaucratic approach to innovative technology solutions at a time when American consumers and small businesses desperately needed to access credit. Take that message to dozens of key members of Congress sitting on relevant committees and other targeted congressional and administration offices. Press lawmakers to force the SEC to answer tough questions and allow our client to restart consumer and small business lending.
Result: Four months after hiring the Podesta Group, the company re-launched its operations with SEC approval. As part of our continued work on behalf of this client, we convened a diverse coalition of new credit models to advocate on behalf of innovative companies engaged in peer-to-peer lending, financial services for the under-banked and access to working capital for small and mid-size businesses.