Author Topic: good news finally  (Read 9284 times)

Half Right

  • Jr. Member
  • **
  • Posts: 89
    • View Profile
    • Email
good news finally
« on: July 18, 2016, 09:25:51 AM »
LendingClub gains after new hire

    Formerly global COO for BlackRock's iShares, and then head of BlackRock's San Francisco office and head of iShares Global Markets and Investments, Patrick Dunne takes over as LendingClub's (NYSE:LC) chief capital officer.
    He will focus on the most critical part of the company's turnaround effort, says BTIG's Mark Palmer: Convincing investors to return to its platform, while also attracting new sources of capital to fund loan growth.
    "Dunne could serve an important role not only in shoring up LendingClub's investor base, but also contributing to the development and launch of new verticals from the company's marketplace platform."
    Shares +2.45% premarket


rawraw

  • Hero Member
  • *****
  • Posts: 2790
    • View Profile
Re: good news finally
« Reply #1 on: July 18, 2016, 04:35:03 PM »
Interesting.  I don't know if this is a sign of things to change, or trying to just get better with institutional money.  I don't know the Blackrock  business well enough to really understand that person's experience.  Maybe they are thinking of getting more creative with funding?  Guy certainly seems impressive

Rob L

  • Hero Member
  • *****
  • Posts: 2108
    • View Profile
Re: good news finally
« Reply #2 on: July 18, 2016, 06:27:55 PM »
He has one seriously impressive CV. BA economics at Berkeley, MS Management from Stanford ending up (before LC) at the age of 47 CEO of BlackRock asset management (the big leagues). Probably boils down to the credibility he's built with his peers and his ability to build a case for them to take another look at LC. On paper at least it certainly looks like a very good move by LC. I'll be rooting for him from the bleachers. Time will tell.

Fred93

  • Hero Member
  • *****
  • Posts: 2221
    • View Profile
Re: good news finally
« Reply #3 on: July 18, 2016, 06:47:31 PM »
I don't know if this is a sign of things to change, or trying to just get better with institutional money.

Reestablishing credibility with large institutional investors (banks) is the main priority inside LC these days.  The CEO is spending much of his time talking with such folks.  As I've heard it, every bank has a different set of issues they want assurance on, and LC has outside auditors and others running around working to satisfy each of their varied requests. 

Even if LC weren't in crisis recovery, large institutional investors (banks) are becoming a significant fraction of LC's business.  These customers speak a different language, have different expectations, require custom handling.  LC obviously needed to build up this area.  Looks like they found a fellow who comes with some credibility of his own.

Larry321

  • Jr. Member
  • **
  • Posts: 57
    • View Profile
    • Email
Re: good news finally
« Reply #4 on: July 18, 2016, 08:18:24 PM »
I don't know if this is a sign of things to change, or trying to just get better with institutional money.

Reestablishing credibility with large institutional investors (banks) is the main priority inside LC these days.  The CEO is spending much of his time talking with such folks.  As I've heard it, every bank has a different set of issues they want assurance on, and LC has outside auditors and others running around working to satisfy each of their varied requests. 

Even if LC weren't in crisis recovery, large institutional investors (banks) are becoming a significant fraction of LC's business.  These customers speak a different language, have different expectations, require custom handling.  LC obviously needed to build up this area.  Looks like they found a fellow who comes with some credibility of his own.

You are right. Institutional investors are a significant source of fudning for loans.
It is unfortunate that smaller lenders like us (Less than $100,000 in loans) are not solicited for our thoughts and recommendations.
Do you think that LC cares about US?  We are what make this P2P and not like all other loan issuers which are I2I, instutions to individuals.

If all of the smaller investers got together, what would we/you as a group want to tell LC management?

LC notes investor for 3 years

Bitcoin speculator

lender90530

  • Newbie
  • *
  • Posts: 25
    • View Profile
Re: good news finally
« Reply #5 on: July 19, 2016, 05:47:10 AM »
We want a BRV. But it will never happen because they don't give a damn about us.

Larry321

  • Jr. Member
  • **
  • Posts: 57
    • View Profile
    • Email
Re: good news finally
« Reply #6 on: July 19, 2016, 08:20:10 AM »
What does BRV mean?

And, we went for several weeks without very man G, F and E loans and now there are dozens of those loans available.

LC notes investor for 3 years

Bitcoin speculator

mchu168

  • Full Member
  • ***
  • Posts: 147
  • “Integrity is the ability to stand by an idea.”
    • View Profile
    • Email
Re: good news finally
« Reply #7 on: July 19, 2016, 08:20:15 AM »
We want a BRV. But it will never happen because they don't give a damn about us.


No, you can't always get what you want
You can't always get what you want
You can't always get what you want
But if you try sometime you find
You get what you need

lender90530

  • Newbie
  • *
  • Posts: 25
    • View Profile
Re: good news finally
« Reply #8 on: July 19, 2016, 11:04:26 AM »
Institutional investors and clients of LC Advisors seem to get what they need.

rawraw

  • Hero Member
  • *****
  • Posts: 2790
    • View Profile
Re: good news finally
« Reply #9 on: July 19, 2016, 03:39:39 PM »
I don't know if this is a sign of things to change, or trying to just get better with institutional money.

Reestablishing credibility with large institutional investors (banks) is the main priority inside LC these days.  The CEO is spending much of his time talking with such folks.  As I've heard it, every bank has a different set of issues they want assurance on, and LC has outside auditors and others running around working to satisfy each of their varied requests. 

Even if LC weren't in crisis recovery, large institutional investors (banks) are becoming a significant fraction of LC's business.  These customers speak a different language, have different expectations, require custom handling.  LC obviously needed to build up this area.  Looks like they found a fellow who comes with some credibility of his own.
Blackrock isn't a bank though

Sent from my SAMSUNG-SM-G935A using Tapatalk


SLCPaladin

  • Full Member
  • ***
  • Posts: 202
    • View Profile
Re: good news finally
« Reply #10 on: July 19, 2016, 06:07:34 PM »
What does BRV mean?

And, we went for several weeks without very man G, F and E loans and now there are dozens of those loans available.

BRV = Bankruptcy Remote Vehicle. While other forum members can probably describe this better than me, a BRV is essentially a legal structure that protects the notes of the lenders in the event of a LC bankruptcy. Prosper put one of these in place several years ago, but LC has never done this. When the RL drama started a few months ago and funding dried up from some institutional players, a lot of the small investors started clamoring for something like this (myself included). In theory, a BRV creates a pathway for notes to continue to be serviced and interest and principal collected were LC to go under (which at this point of the game is remote possibility, but a possibility nonetheless).

Mr. Sanborn sent out a letter to investors alluding to the fact that they do have a contingency plan in the "worst case scenario" (i.e. LC bankruptcy), but LC's plan falls short of a formal BRV. In all actuality, we don't really know how a BRV would work in practice and whether it would truly protect investors notes and attached revenue streams since this has never played itself out (hopefully we won't have to test it).
« Last Edit: July 19, 2016, 06:10:49 PM by SLCPaladin »

anabio

  • Full Member
  • ***
  • Posts: 107
    • View Profile
Re: good news finally
« Reply #11 on: July 19, 2016, 09:06:02 PM »
What does BRV mean?

BRV = Bankruptcy Remote Vehicle.  In theory, a BRV creates a pathway for notes to continue to be serviced and interest and principal collected were LC to go under (which at this point of the game is remote possibility, but a possibility nonetheless).

Not exactly correct. As you stated, there has always been a plan in place to service the loans if LC went bankrupt. Whenever LC deems to respond to BRV type questions they always "trot out" this blurbage. It's not a real BRV.

All investors in LC loans are non secured. That means you and I do not really own the loans; LC does. The loans are considered LC assets. For that reason, if LC went bankrupt we would stand in line with all other LC's non secured creditors (uncashed paychecks, outstanding bills, bonds that LC owes, utility bills, etc) for payment from these assets. As others have stated, they are not too worried about a bankruptcy in the near future because LC has (or had...until they started buying their own loans) about 800million in cash....supposedly more than enough to run their business and weather the storm. The problem that comes into play is if LC is using that cash to purchase it's own loans that cushion might disappear faster than we might think. Also if LC went to the "till" to borrow money for some reason, those bonds would be on par with us for repayment. So if they happened to go bankrupt without that cash cushion we might not get the full amount of our loans back. I guess we might get a hint of how much the cushion has disappeared in August during that conference call.

Another "fly in the ointment" is the question of how any stockholder lawsuit might play out, which there surely will be. A bankruptcy judge could decide that stockholders have just as good a claim on LC assets as we do. Those lawsuits take years to grind through the courts so they are not of immediate concern...but could come into play years from now.

As I said in a previous note, bankruptcy cases are not cut and dried. The judge has a lot of leeway in deciding who gets "first dibbs" on those loans. He could decide that some other concern should have a higher priority than we investors. I only have to mention the word "General Motors/Government Motors as proof of this. In that case the Federal Government got involved and rammed a "solution" through which in effect gave GM to the unions and bond holders who legally were "supposed" to be at the head of the line to get paid got the "you know what".

Supposedly a BRV (if done right) would take those loans and remove them from LC's control. Therefore if LC went bankrupt the loans could not be used to pay other creditors.
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money

fliphusker

  • Sr. Member
  • ****
  • Posts: 463
    • View Profile
    • Email
Re: good news finally
« Reply #12 on: July 19, 2016, 09:40:53 PM »
We want a BRV. But it will never happen because they don't give a damn about us.

Not going to worry about a BRV, if I did, I would be cashing out of FOLIO right now.  Sure there are some here who have hit that panic button and cashing out with big discounts to boot -- talk about BRV. 
It is not a deal breaker, as LC did not have a BRV in place when I invested here.  So not going to tell LC to change the rules of the game in my favor.  You do not demand that at MGM Grand that you get a quarter of your money back on a loss at roulette, do you?

anabio

  • Full Member
  • ***
  • Posts: 107
    • View Profile
Re: good news finally
« Reply #13 on: July 19, 2016, 10:16:59 PM »
  You do not demand that at MGM Grand that you get a quarter of your money back on a loss at roulette, do you?

Are you seriously comparing LC investments with gambling at Las Vegas? I've got to assume you wrote that with a little tongue in cheek. ;)
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money

Rob L

  • Hero Member
  • *****
  • Posts: 2108
    • View Profile
Re: good news finally
« Reply #14 on: July 19, 2016, 10:36:58 PM »
We want a BRV. But it will never happen because they don't give a damn about us.

Not going to worry about a BRV, if I did, I would be cashing out of FOLIO right now.  Sure there are some here who have hit that panic button and cashing out with big discounts to boot -- talk about BRV. 
It is not a deal breaker, as LC did not have a BRV in place when I invested here.  So not going to tell LC to change the rules of the game in my favor.  You do not demand that at MGM Grand that you get a quarter of your money back on a loss at roulette, do you?

We note owners are unsecured creditors of unsecured creditors. LC has changed plenty of rules mid-game but this isn't one of them. Are we being compensated for all that risk? I really don't know. Some think sure, that's what we signed on for and others think yeah but LC's prospects aren't as bright as they once seemed to be. Maybe take a few "chips off the table", or maybe I'll take them all. With our notes on LC's balance sheet owning them is only modestly different from owning LC stock (go ahead everyone and tell me how wrong headed that is). Both are ultimately a bet on LC's long term viability.