{"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&#8217;s fall from rock star status"},"content":{"rendered":"<p>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<ol>\n<li>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<li>the improper sale of USD 22.3 million worth of loans, despite them not meeting certain criteria;<\/li>\n<li>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<p>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<div class=\"rpbt_shortcode\">\n\n<div id='rpbt-related-gallery-1' class='gallery related-gallery related-galleryid-12293 gallery-columns-3 gallery-size-thumbnail'><figure class='gallery-item' role='group' aria-label='What\u2019s hot and what\u2019s not in the U.S. Fintech'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/whats-hot-and-whats-not-in-the-u-s-fintech\/'><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2017\/09\/What\u2019s-hot-and-what\u2019s-not-in-the-U.S.-Fintech-150x150.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" aria-describedby=\"rpbt-related-gallery-1-6791\" srcset=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2017\/09\/What\u2019s-hot-and-what\u2019s-not-in-the-U.S.-Fintech-150x150.jpg 150w, https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2017\/09\/What\u2019s-hot-and-what\u2019s-not-in-the-U.S.-Fintech-100x100.jpg 100w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-6791'>\n\t\t\t\tWhat\u2019s hot and what\u2019s not in the U.S. Fintech\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='PayPal&#8217;s Stablecoin Launch Could End the Crypto Winter'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/paypals-stablecoin-launch-could-end-the-crypto-winter\/'><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2023\/08\/c8eeab1e-b317-a467-770a-e79e33da5b021-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" aria-describedby=\"rpbt-related-gallery-1-17269\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-17269'>\n\t\t\t\tPayPal&#8217;s Stablecoin Launch Could End the Crypto Winter\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='The state of small business lending in Russia'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/the-state-of-small-business-lending-in-russia\/'><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2019\/07\/the-state-of-small-business-lending-in-russia-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" aria-describedby=\"rpbt-related-gallery-1-13262\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-13262'>\n\t\t\t\tThe state of small business lending in Russia\n\t\t\t\t<\/figcaption><\/figure>\n\t\t<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>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 &hellip;<\/p>\n","protected":false},"author":5,"featured_media":12310,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,16],"tags":[129,335],"class_list":["post-12293","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-fintech","category-international-fintech","tag-onlinelending","tag-startups","b_post_type-the-fintech-world"],"_links":{"self":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/12293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/comments?post=12293"}],"version-history":[{"count":1,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/12293\/revisions"}],"predecessor-version":[{"id":12294,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/12293\/revisions\/12294"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media\/12310"}],"wp:attachment":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media?parent=12293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/categories?post=12293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/tags?post=12293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}