Author Topic: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse  (Read 66906 times)

newstreet

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It's not the origination dates, although that's stupidly bad. It's the self-dealing via Citrix. Laplanche can't sail away from this mess. Looks like the yacht may be up for sale soon.

LOL-yes maybe someone can get a loan from lending club it buy it!

Rob L

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On the other hand you can see why Mack would be extremely "distressed" (or stronger language) to learn after the fact that he'd been placed in a position of conflict by RL. That's a big part of why RL was fired? It was personal?
« Last Edit: May 09, 2016, 06:10:45 PM by Rob L »

hzhou9

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On the other hand you can see why Mack would be extremely "distressed" (or stronger language) to learn after the fact that he'd been placed in a position of conflict by RL. That's a big part of why RL was fired? It was personal?

If RL was involved in "data manipulation" and "having LC invest into his fund without disclosure", I wont feel sorry for his departure. I just never expected this to happen, really a big surprise - lets wait for more details:(

LonghornSF

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On the other hand you can see why Mack would be extremely "distressed" (or stronger language) to learn after the fact that he'd been placed in a position of conflict by RL.

Mack never should have invested in a fund that was selectively buying LC loans. That's a clear conflict of interest. He absolutely should know better than that. I don't see how they can let him stay on the board.

Rob L

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What did Mack know and when did he know it?

bcartpa

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Because they are a public company with a duty to shareholders.  This is why the Board exists.  That would be very illegal what he was trying to do.  I was impressed with the Board's action, like others have said.  But fraud is often found in fast growing financials in distressed times.  So typical financial investors see these things are signs of a downturn.  It's the worst thing I could think of that impacts sentiment but not financial results.

I agree.  I am encouraged by the Board's actions. 

At these prices, Lending Club could be an acquisition target by a larger FiServ player.  The future cash flow LC is set up to receive from all of the existing notes makes it very interesting.  I don't own any LC stock but I will strongly consider buying at these levels.
Individual Investor on Lending Club since 2013 and creator of the P2P Investor Kit, automation software for Lending Club investors: www.p2pinvestorkit.com

Rob L

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I don't own any LC stock but I will strongly consider buying at these levels.

Gee, I wish you the best with that.

PhilGD

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At these prices, Lending Club could be an acquisition target by a larger FiServ player. The future cash flow LC is set up to receive from all of the existing notes makes it very interesting.  I don't own any LC stock but I will strongly consider buying at these levels.

That would suck if you ask me. I think chances are good that any acquirer would shut down retail investing operations. Then all of us would be forced to watch our portfolios wind down and all the fun of note selection would end.
« Last Edit: May 09, 2016, 07:20:47 PM by PhilGD »

andy3109

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I took a wild gamble and bought 2K lending club today @ $5.00. I'm not convinced that this will end LC with the amount of loans on the books and the customer base. I think average case, the stock goes between 3 and 7 dollars over the next year. Optimistic case the stock reaches $10 in a few years or is bought out for a premium.

lender90530

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If the new management team has half a brain they would institute a BRV for retail lenders to add confidence. I know I would not invest another dime in this company without one.

newstreet

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I took a wild gamble and bought 2K lending club today @ $5.00. I'm not convinced that this will end LC with the amount of loans on the books and the customer base. I think average case, the stock goes between 3 and 7 dollars over the next year. Optimistic case the stock reaches $10 in a few years or is bought out for a premium.

There are no loans on the books...........this is becoming amusing


LonghornSF

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If the new management team has half a brain they would institute a BRV for retail lenders to add confidence. I know I would not invest another dime in this company without one.

Same for me. I haven't reinvested for a while since I was concerned about credit quality, but with today's news I will absolutely never invest again until retail investors are protected by a bankruptcy remote vehicle. There is simply too much risk under the current structure.

Fred

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I took a wild gamble and bought 2K lending club today @ $5.00.

If you really wanted to gamble, get the $5.0 call and $4.0 put. You can reap a harvest as early as tomorrow if the volatility continues, ;-)

hzhou9

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How would you guys think about Scott Sanborn?

http://seekingalpha.com/article/3973359-lendingclubs-lc-management-q1-2016-results-earnings-call-transcript?page=1

Scott Sanborn
I recognize, we’ve given everybody a lot to digest this morning. I hope we’ve answered many of your questions, but I’m sure you’re all going to have more in the days and weeks ahead. LendingClub is always operated with transparency and it is our commitment to do so going forward. And so our intention is to schedule as many investor meetings as we can in the next few weeks. In the meantime, if you have questions, please don’t hesitate to reach out to me, James or Carrie. We thank everybody for their confidence and support.