Leviathan News

Goldfinch, an RWA lending platform, is facing a default on one of its pools. The borrowers, LendEast, can only repay $4.25 million of the $10 million loan, resulting in a loss of 58% of the principal. The issue highlights the breakdown in risk controls and underwriting standards in RWA lending platforms. Goldfinch is pushing the responsibility of pursuing the claim onto the lenders, rather than taking action themselves. This default is not the first for Goldfinch, as there have been previous defaults tied to the founders. The recovery process for defaulted loans can be lengthy and expensive, discouraging lenders from pursuing legal action.
Keywords

Goldfinch, RWA lending, default, risk controls, underwriting standards, lenders, recovery process

Chapters

00:00 Introduction and Overview
11:13 Previous Defaults at Goldfinch
30:23 Goldfinch's Response and Potential Solutions
39:53 Conclusion and Closing Remarks