Lend Academy Network Forum

Lending Club Discussion => Investors - LC => Topic started by: fliphusker on May 16, 2016, 02:06:15 PM

Title: How worried are you about LC future?
Post by: fliphusker on May 16, 2016, 02:06:15 PM
Fred put up some good polls the other day, but I am curious to see what level people are at.  I would have liked to have more then 5 options though.  This is not scientific, and sorry if my wording does not encompass a section for everyone. 
1 vote each, poll open 90 days.
For me, only investing now on FOLIO.  Nice bargains on notes that meet my criteria. 
Title: Re: How worried are you about LC future?
Post by: sommers on May 16, 2016, 02:30:25 PM
With all the apparent confusion (at least on this forum) about the legal status of our notes--how can a reasonable person not be worried?
I remain amazed at the lack of posts and participation of note holders on this basic issue
Is there another forum somewhere on the web that I'm not aware of (discussing this situation from a note holder perspective)?
Title: Re: How worried are you about LC future?
Post by: Fred93 on May 16, 2016, 03:24:10 PM
With all the apparent confusion (at least on this forum) about the legal status of our notes--how can a reasonable person not be worried?

There is ZERO legal confusion about status of our notes.

There is only confusion about events in the future.  (In other words, a few people worry that massive additional very bad things will happen resulting in some loss to note investors.)
Title: Re: How worried are you about LC future?
Post by: fliphusker on May 16, 2016, 03:25:48 PM
I have no clue if there are other sites where retail side investors gather more, have never found one. 
I think some here are just not flying off the handle, and are cautiously optimistic waiting for the 10Q and hopefully a statement by Sanborn.   LC stock has seen a bit of a rebound today at least. 
Title: Re: How worried are you about LC future?
Post by: RaymondG on May 16, 2016, 03:48:41 PM
None of option suits me. I sold portion of notes and with loss. However, I choose "5-6" as my worry level.

By the way, you can always *edit* your poll to add more options.
Title: Re: How worried are you about LC future?
Post by: fliphusker on May 16, 2016, 04:15:48 PM
None of option suits me. I sold portion of notes and with loss. However, I choose "5-6" as my worry level.

By the way, you can always *edit* your poll to add more options.
I did not see that I could add more options, until you pointed it out.  Think I will leave it like it is and not add "other" or other options.  Apologize it was not done better.  :(  I was just trying to get a general feeling for how people are viewing things right now.
Title: Re: How worried are you about LC future?
Post by: LonghornSF on May 16, 2016, 06:46:51 PM
I sold a few notes but am just staying put for the most part. I'm not going to sell my notes at any meaningful discount unless the situation deteriorates a lot.

FYI - they just released the 10-Q.
Title: Re: How worried are you about LC future?
Post by: sommers on May 17, 2016, 02:38:13 PM
With all the apparent confusion (at least on this forum) about the legal status of our notes--how can a reasonable person not be worried?

There is ZERO legal confusion about status of our notes.

There is only confusion about events in the future.  (In other words, a few people worry that massive additional very bad things will happen resulting in some loss to note investors.)
Okay---then tell me what our legal status is? 
Title: Re: How worried are you about LC future?
Post by: sommers on May 17, 2016, 02:41:52 PM
I have no clue if there are other sites where retail side investors gather more, have never found one. 
I think some here are just not flying off the handle, and are cautiously optimistic waiting for the 10Q and hopefully a statement by Sanborn.   LC stock has seen a bit of a rebound today at least.

I just got more information from the LC stock message board on Yahoo business.  Here is this person's quote from the board_-----

"Read yoru agreements. There is a 3rd party servicer setup to service the loans should LC go BK (they won't). Who asked LC to setup the 3rd party servicer? Big investors, banks, private equity. Why? Purely for protecting their investments. All done long ago and nothing to do with today. Prosper is the same setup. I've worked for both companies."

Is this valid?  (and yes--he's correct--I need to read my documentation (need to find it first)
Title: Re: How worried are you about LC future?
Post by: rawraw on May 17, 2016, 02:55:37 PM
I have no clue if there are other sites where retail side investors gather more, have never found one. 
I think some here are just not flying off the handle, and are cautiously optimistic waiting for the 10Q and hopefully a statement by Sanborn.   LC stock has seen a bit of a rebound today at least.

I just got more information from the LC stock message board on Yahoo business.  Here is this person's quote from the board_-----

"Read yoru agreements. There is a 3rd party servicer setup to service the loans should LC go BK (they won't). Who asked LC to setup the 3rd party servicer? Big investors, banks, private equity. Why? Purely for protecting their investments. All done long ago and nothing to do with today. Prosper is the same setup. I've worked for both companies."

Is this valid?  (and yes--he's correct--I need to read my documentation (need to find it first)
Valid that it exists, not valid for why it exists. It's existed much longer than the big money has.

There are three possibilities for Lending Club: business as usual, merger, or bankruptcy. The question is about your perception of the probability of these three possibilities. I think LC incentives are to sell before bankruptcy, to avoid making investors upset. While we "should" get paid out in bankruptcy , there may be a period where our investment is not earning interest and it is not accessible.

My probability estimates is probably business as usual, maybe merger, not likely bankruptcy. I am worried slightly and don't understand why anyone wouldn't.  The next question after probabilities of those three events is risk tolerance. There are some solid opportunities on Folio.

I stopped reading this forum lately   because I don't like reading opinions not grounded in reality, given I need clarity when thinking about the markets. Conspiracy theories or abundant optimism ends up influencing the range of outcomes I come up with and can too easily sway my assessment of possibilities and their probability

If you want to discuss LC and hear my take, feel free to pm me. 

Sent from my SAMSUNG-SM-G935A using Tapatalk
Title: Re: How worried are you about LC future?
Post by: LonghornSF on May 17, 2016, 04:45:59 PM
Quote

I just got more information from the LC stock message board on Yahoo business.  Here is this person's quote from the board_-----

"Read yoru agreements. There is a 3rd party servicer setup to service the loans should LC go BK (they won't). Who asked LC to setup the 3rd party servicer? Big investors, banks, private equity. Why? Purely for protecting their investments. All done long ago and nothing to do with today. Prosper is the same setup. I've worked for both companies."

Is this valid?  (and yes--he's correct--I need to read my documentation (need to find it first)

Having a third party servicer does not entirely solve the problem. If LC fails, the loans will be serviced (i.e. payments collected), but the question is who gets the proceeds of the loan? Retail investors are in line with all other unsecured creditors to receive payment. Put another way: if LC goes bankrupt and owed $1bn to employees, suppliers, etc. and $10bn to investors then the proceeds from loans will be split amongst all $11bn in creditors.

This is a bit of a hypothetical question since 1) LC currently has net cash of ~$600mn 2) LC is nowhere near bankruptcy. This does highlight an underlying issue that the company must eventually address though.
Title: Re: How worried are you about LC future?
Post by: jz451 on May 17, 2016, 05:06:34 PM
People shouldn't be worried in my opinion. after seeing several other posters saying that we will be screwed in a bankruptcy is silly. To prove it I simply looked at the 10-Q posted on the forum and  looked at the income statement and balance sheet. From five minutes looking at it there is $4.7B in notes paid to us, $583M cash and $104M in restricted cash, with no other major liabilities. Looking at the costs and tax, for the quarter equals $148M. So if LC goes bankrupt today, all the cash pays a years worth of expenses. I am confident that even with no cash we could likely get back at least 80-90% (guesstimate) of our investment back no problem.
Title: Re: How worried are you about LC future?
Post by: Rob L on May 17, 2016, 06:12:58 PM
LC's stock closed at $7.10 on Friday 5/7, opened at $5.39 on Monday 5/9 after the news regarding RL's and three other's firing, loans back dated, RL conflict of interest with Cirrix, etc. I was a stock holder through this brief period (though a very much larger note holder in LC loans). Things do not have seemed to have improved over the past week.

For the sake of argument lets say all the drop in the stock price was caused by the bad news (after all LC made it's quarterly earnings number and it's first quarterly profit ever I think). Lawyers will make this argument; possibly more (they will go back all the way to the IPO). So, $7.10 - $5.39 = $1.71 loss per share x 381 million shares outstanding = $651M and change loss. That's more than the $583M LC has in cash. The stockholders have a legitimate gripe. Maybe that's why law firms are coming out of the woodwork to "investigate" LC for investors with a loss. What will the judge say (and there will be one) regarding the division of LC's assets amongst its claimants? "What, me worry?" ... AEN

Update:
Lawyers are not only investigating; a class action suit has been filed though they are still trolling for claimants:
http://finance.yahoo.com/news/equity-alert-rosen-law-firm-222800444.html (http://finance.yahoo.com/news/equity-alert-rosen-law-firm-222800444.html)
Title: Re: How worried are you about LC future?
Post by: AnilG on May 17, 2016, 07:41:50 PM
LC Access to Cash and other Funds

Cash and cash equivalents $583.842 million
Restricted cash $104.485 million
Secured Revolving Credit $120 million

Total Funds Available $1,094 million.
Loans Originated in Q1 $2,750 million.

This exercise assumes all expenses will be met by income and all cash can be used to fund new loans.

Total Internal Capacity to Originate Loans in next 3 months if originations were to stay same as previous quarter = 1,094/2,750 = 39.8%

Assuming 30% drop in new originations for next 3 months, loan originations = 2,750 x 0.70 = $1,925 million. Total Internal Capacity to Originate Loans in next 3 months = 1,094/1,925 = 56.8%

Assuming only 50% of new originations in next 3 months funded by external funds. Total internal funds required = 1,925 x 0.50 = 962.50 million. Total Internal Capacity to Originate Loans = 1,094/962.50 = 114%. It appears LC may be able to handle up to 50% drop in external funding and still manage loan originations next 3 months.

I am pretty sure large institutions are running what-if scenarios like this and doing all kind of financial modeling. Sharks are circling the blood. These institutions are going to demand very favorable terms to fund and buy LC loans. LC may not have more than a Quarter or two to get the ship upright.
Title: Re: How worried are you about LC future?
Post by: jz451 on May 17, 2016, 07:50:55 PM
They need to start attracting more individual investors to make up for the loss of institutions, but I hardly see that happening anytime soon. That seems to be the problem with P2P investing where they platforms want to grow quickly but growth in the volume of money invested by individuals lags behind.
LC Access to Cash and other Funds

Cash and cash equivalents $583.842 million
Restricted cash $104.485 million
Secured Revolving Credit $120 million

Total Funds Available $1,094 million.
Loans Originated in Q1 $2,750 million.

This exercise assumes all expenses will be met by income and all cash can be used to fund new loans.

Total Internal Capacity to Originate Loans in next 3 months if originations were to stay same as previous quarter = 1,094/2,750 = 39.8%

Assuming 30% drop in new originations for next 3 months, loan originations = 2,750 x 0.70 = $1,925 million. Total Internal Capacity to Originate Loans in next 3 months = 1,094/1,925 = 56.8%

Assuming only 50% of new originations in next 3 months funded by external funds. Total internal funds required = 1,925 x 0.50 = 962.50 million. Total Internal Capacity to Originate Loans = 1,094/962.50 = 114%. It appears LC may be able to handle up to 50% drop in external funding and still manage loan originations next 3 months.

I am pretty sure large institutions are running what-if scenarios like this and doing all kind of financial modeling. Sharks are circling the blood. These institutions are going to demand very favorable terms to fund and buy LC loans. LC may not have more than a Quarter or two to get the ship upright.
Title: Re: How worried are you about LC future?
Post by: nonattender on May 17, 2016, 08:09:08 PM
One, ditch the compromised or simply stupid board member(s) who haven't already or aren't now saying that priority #1 is protecting the retail investors and ordering their new chief executive officer to implement a bankruptcy remote vehicle to shield retail's interests in loans.

Two, wait for #1.  It's all deck-chair re-arranging until that directive comes down and is successfully carried out.  Figuring out how best to bribe institutional loan buyers to take more of your product isn't necessary (though nice to know that's your first thought!) if you fix retail.

Of course, this assumes that the board wants to fix the platform and wants to help retail investors, which is maybe a bit of a stretch now.

Like, a 10-20 stretch.  Chop, chop.  Get to voting.  I want to see a BRV by Tuesday.  You've got a week.  "All in favor of no jail-time? Aye!"

(says me, with all the authority vested in me by poetry)
Title: Re: How worried are you about LC future?
Post by: michael49 on May 17, 2016, 08:13:53 PM
......
Update:
Lawyers are not only investigating; a class action suit has been filed though they are still trolling for claimants:
http://finance.yahoo.com/news/equity-alert-rosen-law-firm-222800444.html (http://finance.yahoo.com/news/equity-alert-rosen-law-firm-222800444.html)

This seems so ridiculously premature.

While it certainly seems that RL made some stupid and unethical decisions I don't see how the events of the past week changes the viability of LC and its potential continued success as a corporation.
Title: Re: How worried are you about LC future?
Post by: nonattender on May 17, 2016, 08:16:50 PM
While it certainly seems that RL made some stupid and unethical decisions I don't see how the events of the past week changes the viability of LC and its potential continued success as a corporation.

^^^ This.  This is why FULL STOP FOR RETAIL UNTIL BRV IN PLACE.
Title: Re: How worried are you about LC future?
Post by: Ribald on May 17, 2016, 08:19:40 PM
LC Access to Cash and other Funds

Cash and cash equivalents $583.842 million
Restricted cash $104.485 million
Secured Revolving Credit $120 million

Total Funds Available $1,094 million.
Loans Originated in Q1 $2,750 million.

This exercise assumes all expenses will be met by income and all cash can be used to fund new loans.

Total Internal Capacity to Originate Loans in next 3 months if originations were to stay same as previous quarter = 1,094/2,750 = 39.8%

Assuming 30% drop in new originations for next 3 months, loan originations = 2,750 x 0.70 = $1,925 million. Total Internal Capacity to Originate Loans in next 3 months = 1,094/1,925 = 56.8%

Assuming only 50% of new originations in next 3 months funded by external funds. Total internal funds required = 1,925 x 0.50 = 962.50 million. Total Internal Capacity to Originate Loans = 1,094/962.50 = 114%. It appears LC may be able to handle up to 50% drop in external funding and still manage loan originations next 3 months.

I am pretty sure large institutions are running what-if scenarios like this and doing all kind of financial modeling. Sharks are circling the blood. These institutions are going to demand very favorable terms to fund and buy LC loans. LC may not have more than a Quarter or two to get the ship upright.

What would be the point of LC spending all its cash internally originating loans since that's clearly not a sustainable model that's going to appeal to anyone?  Focus on restoring external originations and cutting expenses.
Title: Re: How worried are you about LC future?
Post by: Rob L on May 17, 2016, 09:46:34 PM
When the stock stops dropping double digits a day and volume traded drops to semi-normal I dare say most will think the bleeding has paused. It's certainly in LC's interests for this to happen sooner rather than later. That's pretty important. Makes me wonder if LC might be using some of it's stock buyback cash to attempt to put a floor in. On the other hand they may chose to preserve the cash because they need all of it for the business. I'd guess they'll probably let the market do what it does and use the cash for the business.
Title: Re: How worried are you about LC future?
Post by: Boatguy on May 17, 2016, 11:48:30 PM
The stock is not an indication of our position.  Retail stock traders usually over react and this is no exception.  These are not so smart guys who "buy high, sell low"!

Warren Buffet was buying like crazy in 2009 when everyone else was dumping.  He's the guy who says "when everyone is greedy, be afraid, when everyone is afraid, be greedy"!
Title: Re: How worried are you about LC future?
Post by: twigster on May 18, 2016, 06:15:15 AM
Quote
While it certainly seems that RL made some stupid and unethical decisions I don't see how the events of the past week changes the viability of LC and its potential continued success as a corporation.
Part of the problem is I don't think the LC business model is very robust [even before all of the recent events], it relies on massive expansion of loan originations and doesn't seem to be very profitable with its current fee structure.
Title: Re: How worried are you about LC future?
Post by: sommers on May 18, 2016, 07:27:48 AM
People shouldn't be worried in my opinion. after seeing several other posters saying that we will be screwed in a bankruptcy is silly. To prove it I simply looked at the 10-Q posted on the forum and  looked at the income statement and balance sheet. From five minutes looking at it there is $4.7B in notes paid to us, $583M cash and $104M in restricted cash, with no other major liabilities. Looking at the costs and tax, for the quarter equals $148M. So if LC goes bankrupt today, all the cash pays a years worth of expenses. I am confident that even with no cash we could likely get back at least 80-90% (guesstimate) of our investment back no problem.
Kind of blows a whole in one's ROI--doesn't it?  :)
Had I realized how fragile this business was---I would not have invested in it--and even if I get my money out---will never get in it again
Title: Re: How worried are you about LC future?
Post by: Fred93 on May 18, 2016, 07:32:03 AM
Part of the problem is I don't think the LC business model is very robust [even before all of the recent events], it relies on massive expansion of loan originations and doesn't seem to be very profitable with its current fee structure.

Judging how "profitable" a business can be is difficult when you haven't observed it in steady state.  If you look at revenue and expenses at LC, you are looking at the expenses needed to GROW BY ABOUT A FACTOR OF TWO EACH YEAR.  To grow that fast you have to hire a lot of people, rent a lot of space, etc that you don't need right now, but need to put in place to handle the coming growth.  You also have to spend money on marketing to draw in much more business than you have now.  If, on the other hand, you reduce your growth objectives, then costs can come way down.

Of course near  term they're going to have a big dip in revenue.  After that is over, it might make a lot of sense to slow down the expansion goals.
Title: Re: How worried are you about LC future?
Post by: sommers on May 18, 2016, 07:34:35 AM
LC's stock closed at $7.10 on Friday 5/7, opened at $5.39 on Monday 5/9 after the news regarding RL's and three other's firing, loans back dated, RL conflict of interest with Cirrix, etc. I was a stock holder through this brief period (though a very much larger note holder in LC loans). Things do not have seemed to have improved over the past week.

For the sake of argument lets say all the drop in the stock price was caused by the bad news (after all LC made it's quarterly earnings number and it's first quarterly profit ever I think). Lawyers will make this argument; possibly more (they will go back all the way to the IPO). So, $7.10 - $5.39 = $1.71 loss per share x 381 million shares outstanding = $651M and change loss. That's more than the $583M LC has in cash. The stockholders have a legitimate gripe. Maybe that's why law firms are coming out of the woodwork to "investigate" LC for investors with a loss. What will the judge say (and there will be one) regarding the division of LC's assets amongst its claimants? "What, me worry?" ... AEN

There are always law firms filing class action suits.  I can't count the class action suits I"ve wasted time filling paper out for on stocks I"ve owned that suddenly dropped (for various reasons).  So, the emergence of law suits is to be expected (regardless of the merits of their case/s).  Also--this industry has been in the tank for months--they've all been selling off. Some are talking about a recession in the next year or two and P2P lending has never ridden out a recession.  There are too many players entering this business (profit margins have to get squeezed eventually with increased competition).  The next sub prime crisis outside of student loans is rumored to be auto loans---that's scaring people
This RL malfeasance was just the icing on the cake.   

Update:
Lawyers are not only investigating; a class action suit has been filed though they are still trolling for claimants:
http://finance.yahoo.com/news/equity-alert-rosen-law-firm-222800444.html (http://finance.yahoo.com/news/equity-alert-rosen-law-firm-222800444.html)
Title: Re: How worried are you about LC future?
Post by: TheReaper on May 18, 2016, 07:41:08 AM
The stock is not an indication of our position.  Retail stock traders usually over react and this is no exception.  These are not so smart guys who "buy high, sell low"!

Warren Buffet was buying like crazy in 2009 when everyone else was dumping.  He's the guy who says "when everyone is greedy, be afraid, when everyone is afraid, be greedy"!

Well said Warren, well quoted Boatguy.  I've been buying with both hands in the Folio market...some ludicrously good deals out there...that only last for a few minutes.  LC will make some much needed changes here and there, but it will still be here in 5 years.  They will turn this lemon into lemonade.  P2P model is here to stay...its been rolling along for 10 years now...it isn't a fad.
Title: Re: How worried are you about LC future?
Post by: Rob L on May 18, 2016, 09:24:52 AM
I've been buying with both hands in the Folio market...some ludicrously good deals out there...that only last for a few minutes.

Wonder where they are coming from? According to the poll above, of 40 responses only 4 are selling on Folio at break even or better and 0 are liquidating at a loss. Must be folks that don't answer polls or don't participate in this forum I guess.
Title: Re: How worried are you about LC future?
Post by: Ribald on May 18, 2016, 10:01:54 AM
I've been buying with both hands in the Folio market...some ludicrously good deals out there...that only last for a few minutes.

Wonder where they are coming from? According to the poll above, of 40 responses only 4 are selling on Folio at break even or better and 0 are liquidating at a loss. Must be folks that don't answer polls or don't participate in this forum I guess.

A snapshot from yesterday showed around $20 million in outstanding principle for sale on folio.
Title: Re: How worried are you about LC future?
Post by: Rob L on May 18, 2016, 10:24:02 AM
On an asking price basis it's still about the same now.
I had some snapshots from mid-April and the total was typically about $11M.
So, we've had roughly a 2X increase in Folio offers to sell over the past month.
Title: Re: How worried are you about LC future?
Post by: fliphusker on May 18, 2016, 12:43:42 PM
The stock is not an indication of our position.  Retail stock traders usually over react and this is no exception.  These are not so smart guys who "buy high, sell low"!

Warren Buffet was buying like crazy in 2009 when everyone else was dumping.  He's the guy who says "when everyone is greedy, be afraid, when everyone is afraid, be greedy"!

Well said Warren, well quoted Boatguy.  I've been buying with both hands in the Folio market...some ludicrously good deals out there...that only last for a few minutes.  LC will make some much needed changes here and there, but it will still be here in 5 years.  They will turn this lemon into lemonade.  P2P model is here to stay...its been rolling along for 10 years now...it isn't a fad.
I agree with you.  Too hard not to take advantage of deals on FOLIO that has notes with a -4 to -6 discount on notes with high YTM that have zero blemishes that meet my filters.  Almost wants me to sell some notes I do not want at a discount, just to grab those.  Glad NSR allows for easy filtering, unlike the nasty FOLIO filters.
As I have not done a lot of buying on FOLIO, when you find a note to buy on NSR, is there an easy way to actually find the note on FOLIO?
Title: Re: How worried are you about LC future?
Post by: michael49 on May 18, 2016, 07:58:31 PM
Part of the problem is I don't think the LC business model is very robust [even before all of the recent events], it relies on massive expansion of loan originations and doesn't seem to be very profitable with its current fee structure.

Judging how "profitable" a business can be is difficult when you haven't observed it in steady state.  If you look at revenue and expenses at LC, you are looking at the expenses needed to GROW BY ABOUT A FACTOR OF TWO EACH YEAR.  To grow that fast you have to hire a lot of people, rent a lot of space, etc that you don't need right now, but need to put in place to handle the coming growth.  You also have to spend money on marketing to draw in much more business than you have now.  If, on the other hand, you reduce your growth objectives, then costs can come way down.

Of course near  term they're going to have a big dip in revenue.  After that is over, it might make a lot of sense to slow down the expansion goals.

Exactly. I disagree that in order to be profitable that LC relies on "massive expansion of loan originations" - that is true if it feels the need to grow quickly but that has more to do with stock price than profitability. 
Title: Re: How worried are you about LC future?
Post by: LonghornSF on May 18, 2016, 10:48:16 PM
The problem is that the P2P model is simply not that profitable in its current iteration. It costs too much to acquire customers and retention rates are very low. I think LC can be profitable, but I don't think it's going to be a great business in its current form. They need to create other, more lucrative products or find ways to charge investors or other parties more.
Title: Re: How worried are you about LC future?
Post by: jz451 on May 18, 2016, 11:03:08 PM
The problem is that the P2P model is simply not that profitable in its current iteration. It costs too much to acquire customers and retention rates are very low. I think LC can be profitable, but I don't think it's going to be a great business in its current form. They need to create other, more lucrative products or find ways to charge investors or other parties more.

It would help if they could educate potential investors better about the expected return and how the investment process works. If they could offer a fund on the investing platform so people can automatically be diversified without choosing notes that would be beneficial to a majority for people who might want to invest, but don't know how and want to be very cautious. They also need a better way to advertise, like frankly showing commercials on CNBC would be beneficial since many people watch shows on the network all day every day instead of essentially relying on word of mouth.
Title: Re: How worried are you about LC future?
Post by: HalfABubbleOff on May 19, 2016, 02:03:39 AM
Not worried about LC's future. 
1) They receive a small amount of cash from every payment to service the loan, so regardless if they do not issue a single new loan there is at least some positive cash flow from recurring payments.
2) New notes can only be funded if they reach the 60% threshold (or whatever percentage it is now).  LC could, in theory drop that % down to get more loans funded albeit at lower total origination fee.
3) LC apparently has already extended the amount of time for new loans to get funded, and if they haven't then they should.
4) The debt they currently have is only related to the loans they have provided and are backed up by the investors.
5) They have access to large sums of cash at this point.
6) Other lenders could swoop in and make a target of LC for takeover attempts.  The customer list is worth money alone, the loan servicing is worth money, there are cash flow streams even if the loan origination comes to a temporary or long term halt.
7) The SEC and NY subpoenas are troubling, but also expected, I doubt they'll find much, but never know. 
Title: Re: How worried are you about LC future?
Post by: Rob L on May 19, 2016, 08:58:30 AM
Nice to see a poll that had 50+ respondents.