""We believe SOFI is a financial engineering treadmill-not a healthy origination business. SOFI shareholders are incessantly diluted so management can hit bonus targets through GE Capital-style loan marks and Enron-esque off-balance-sheet structures that disguise borrowings as revenue.""
""The report has an impressive amount of detail and analysis but misunderstands or mischaracterizes key facts related to the loan sale, discount rate and more.""
Muddy Waters targeted SoFi, alleging accounting manipulations that could harm shareholders. The firm claimed SoFi misrepresented a $312 million loan package and misvalued its student loan portfolio. The report suggested that SoFi's financial practices resembled those of GE Capital and Enron. Despite the serious nature of these allegations, SoFi's stock did not suffer significantly, indicating that the market may not find the claims credible. Analyst Don Dolev noted that the report mischaracterized key facts, contributing to the stock's resilience.
Read at Fortune
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