Author Topic: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse  (Read 66899 times)

Lovinglifestyle

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #195 on: May 17, 2016, 07:33:15 PM »
Letter from LC CEO
http://ir.lendingclub.com/Cache/1001210511.PDF?Y=&O=PDF&D=&fid=1001210511&T=&iid=4213397

I don't get the "Dear Investor" part.  Did some people receive this in their email?

nonattender

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #196 on: May 17, 2016, 07:41:44 PM »
Letter from LC CEO
http://ir.lendingclub.com/Cache/1001210511.PDF?Y=&O=PDF&D=&fid=1001210511&T=&iid=4213397

I don't get the "Dear Investor" part.  Did some people receive this in their email?

Are the lawyers so firmly wrapped around the coil of LendingClub that they do not want to call a note buyer an investor in an email?

That's a bit much.  That lawyer's time could be much better spent figuring out how to shield the retail "note holders" from any harm.

Do that and you might actually save the joint.
A little nonsense now and then is relished by the wisest men.

investny

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #197 on: May 18, 2016, 03:16:30 AM »
I got the link from Lend Academy blog post

AnilG

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #198 on: May 18, 2016, 06:26:39 PM »
Sometime it is interesting to look at what people were saying few years ago. I came across a gem from Matt Levine written when Lending Club filed SEC registration for IPO.

Lending Club Can Be a Better Bank Than the Banks
http://www.bloomberg.com/view/articles/2014-08-27/lending-club-can-be-a-better-bank-than-the-banks

Quote
None of that is exactly wrong, but here is a more accurate picture:

  • You want a loan, fill out the form, etc.
  • I open an account, think you look likely, etc.
  • A bank gives you the loan.
  • The bank sells the loan to Lending Club.
  • Lending Club keeps the loan on its balance sheet.
  • Lending Club creates an unsecured structured note referencing that loan.
  • It sells that note to me.
  • Then you make payments to Lending Club, and it makes payments on the note to me.
  • You never owe me money: You owe Lending Club money, and Lending Club owes me money.
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investny

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #199 on: May 20, 2016, 12:26:48 AM »
Just got this email. For some reason only got it for one of my accounts/emails.

I'm Scott Sanborn, President and acting CEO of Lending Club. I've been on Lending Club's leadership team for the past six years as Chief Marketing Officer and Chief Operating Officer, and I wanted to take a moment to introduce myself and describe our current focus.
 
Individual investors like you are - and will always be - the foundation of our marketplace.
 
Given recent events, my immediate focus is on how Lending Club can best serve you - our investors. We've talked to hundreds of our investors - spanning individuals to financial advisors to banks to large institutions - over the past week about the strength of our business, our operations, our people, and our data integrity. Let me assure you that we are in a strong financial position with a substantial amount of cash and securities on our balance sheet - $868 million. We plan to be around for many years to come.
 
The performance of loans facilitated through the platform remains robust. We continue to service and process borrower payments just like we always have, and the interest and principal payments that borrowers make will continue to be passed on to you just as they were before.
 
We're extremely proud of the products we're providing to both borrowers and investors, and I look forward to sharing more with you in the coming months and years about our company and our results.
 
I'm not working alone. Our Executive Team has been working together for the past six years and has deep expertise in credit, operations, marketing, finance, human resources and technology. We're also supported by one of the strongest Board of Directors in the industry. It includes Hans Morris (former President of Visa and now our Executive Chairman), Larry Summers (former US Treasury Secretary), John Mack (former CEO of Morgan Stanley), Mary Meeker (a Partner at Kleiner Perkins Caufield & Byers) and other experienced executives.
 
I will continue to keep you informed as we move ahead. In the meantime, feel free to contact our team with questions and suggestions at (888) 596-3159 7am-5pm PT, Monday through Friday, or email us anytime at investing@lendingclub.com.
 
Thank you for investing with us. I look forward to having you as an investor for years to come.
 
Sincerely,
ScottSignature
 
Scott Sanborn

SeanMCA

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #200 on: May 20, 2016, 12:54:49 AM »
I didn't get anything
I'm a merchant cash advance veteran exploring the p2p lending waters.

investny

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #201 on: May 20, 2016, 12:56:12 AM »
There is another completely different email in another thread. Much more detailed email.
I think they sent them out based on account size.

twigster

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #202 on: May 20, 2016, 10:23:57 AM »
Quote
I think they sent them out based on account size.
I don't think so as I only received one letter (the longer one) to the personal email account, that account size is very small compared to the ROTH which did not receive the letter.  They must have some other criteria for sending them out. 

dompazz

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #203 on: May 20, 2016, 11:11:03 AM »
Quote
I think they sent them out based on account size.
I don't think so as I only received one letter (the longer one) to the personal email account, that account size is very small compared to the ROTH which did not receive the letter.  They must have some other criteria for sending them out.
It's confusing to me.  It is not like they don't have the ability to send emails to every account holder.  We get emails within seconds of buying a note -- at feeding time, that's a lot of emails to send promptly.  At most, it should have taken them a few minutes to send everyone an email.

janef

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #204 on: May 20, 2016, 01:11:23 PM »
Quote
I think they sent them out based on account size.
I don't think so as I only received one letter (the longer one) to the personal email account, that account size is very small compared to the ROTH which did not receive the letter.  They must have some other criteria for sending them out.
It's confusing to me.  It is not like they don't have the ability to send emails to every account holder. 

I'm a small investor, and did receive the email.

There is a good explanation as to why some investors received the email, while other have not yet. All servers have the limit of bulk emails, e.g., 500, 1000 or a bit more, for a day or hour depending on the capacity of the server. LC's server may be able to send larger quantity of bulk emails, but if they have million of investors (possible?) then it will take quite a while for every investor to receive it.
« Last Edit: May 20, 2016, 01:13:18 PM by janef »

SeanMCA

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #205 on: May 20, 2016, 01:55:33 PM »
I'm a small investor, and did receive the email.

There is a good explanation as to why some investors received the email, while other have not yet. All servers have the limit of bulk emails, e.g., 500, 1000 or a bit more, for a day or hour depending on the capacity of the server. LC's server may be able to send larger quantity of bulk emails, but if they have million of investors (possible?) then it will take quite a while for every investor to receive it.

I think if they had "millions" of investors, there'd be more than just 20 regular people commenting on this forum.  8)
I'm a merchant cash advance veteran exploring the p2p lending waters.

AnilG

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #206 on: May 20, 2016, 02:13:15 PM »
IIRC Renaud claimed few months ago that there are 100,000+ retail lenders on the platform. I typically use between 100,000 and 150,000 as ballpark for number of retail accounts on the platform. I am biased that marketing tend to inflate numbers so I assume this count is actually the number of accounts by retail lenders as lenders can have multiple accounts, each with unique email address. Assuming on average an household has 2 accounts, most probably there are between 50,000 and 75,000 retail lenders on the platform.

I think if they had "millions" of investors, there'd be more than just 20 regular people commenting on this forum.  8)
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Rob L

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Re: LendingClub stock Plunges After CEO Quits, Firm Finds Loan-Sale Abuse
« Reply #207 on: May 20, 2016, 10:14:22 PM »
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, ;-)

You notice how the options market makers pinned the close/expiration today at $4.00 on the button.
Unfortunate for holders at that strike, but you have to admire the work. They owned today.