{"id":12293,"date":"2019-02-19T06:50:53","date_gmt":"2019-02-19T06:50:53","guid":{"rendered":"http:\/\/bulletins.bfconsulting.com\/?p=12293"},"modified":"2019-02-19T06:50:53","modified_gmt":"2019-02-19T06:50:53","slug":"lendingclub-s-fall-from-rock-star-status","status":"publish","type":"post","link":"https:\/\/bulletins.bfconsulting.com\/en\/lendingclub-s-fall-from-rock-star-status\/","title":{"rendered":"LendingClub’s fall from rock star status"},"content":{"rendered":"

Not long ago, LendingClub was the brightest star in the rapidly-growing world of online lending. With shares having dropped two thirds in two months, the company now has investors nervous. LendingClub\u2019s fall began following the announcement of a government investigation, an investigation LendingClub has announced it is \u201cfully-cooperating\u201d with. The investigation is looking into three key issues:<\/p>\n

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  1. then-CEO Renaud Laplanche failing to disclose a personal investment in Cirrix Capital, a firm that invested in LendingClub loans and vice versa;<\/li>\n
  2. the improper sale of USD 22.3 million worth of loans, despite them not meeting certain criteria;<\/li>\n
  3. loan manipulation in the form of LendingClub employees changing application dates on USD 3 million in loans as part of an attempt to meet investor requirements.<\/li>\n<\/ol>\n

    To help reassure investors, LendingClub launched an internal investigation into the matters, hired a new CEO and let go of a number of senior management. The company has also claimed that no material adjustments are necessary to be made to its financial statements as a result of the uncovered instances. Experts believe that it will take a considerable amount of time for the fallout to be overcome. Moreover, they state that it is possible that confidence in online lenders in general could be hurt by LendingClub\u2019s improprieties.<\/p>\n

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