Author Topic: BRV Requests: Responses from Lending Club  (Read 21244 times)

Fred93

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Re: BRV Requests: Responses from Lending Club
« Reply #75 on: May 26, 2016, 07:40:28 AM »
WHAT IF---LC mgmt decides to start using that cash to buy loans in an effort to maintain some growth

That would be a stupid strategy.  Many reasons.  The biggest reason is that they can't "maintain some growth" by using their cash in this way.  They don't have enough cash to effect growth.  LC issued $2.75B in loans in the most recent quarter.  They have $800M in the bank.  Wouldn't last very long if used that way.  So no.


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---stay relevant to prospective borrowers (who might just go to Prosper  or elsewhere)?

The concept of "staying relevant" to borrowers is completely meaningless to this business.  LC can have all the borrowers they want.  All they have to do is advertise for them.  Today's problem is lenders.  The big guys (banks, hedge funds, etc) have pulled back.  The retail investors have pulled back ... That's what we're having this conversation about.  So no, there is no need to "stay relevant to borrowers".

sommers

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Re: BRV Requests: Responses from Lending Club
« Reply #76 on: May 26, 2016, 08:48:13 AM »
WHAT IF---LC mgmt decides to start using that cash to buy loans in an effort to maintain some growth

That would be a stupid strategy.  Many reasons.  The biggest reason is that they can't "maintain some growth" by using their cash in this way.  They don't have enough cash to effect growth.  LC issued $2.75B in loans in the most recent quarter.  They have $800M in the bank.  Wouldn't last very long if used that way.  So no.


Quote
---stay relevant to prospective borrowers (who might just go to Prosper  or elsewhere)?

The concept of "staying relevant" to borrowers is completely meaningless to this business.  LC can have all the borrowers they want.  All they have to do is advertise for them.  Today's problem is lenders.  The big guys (banks, hedge funds, etc) have pulled back.  The retail investors have pulled back ... That's what we're having this conversation about.  So no, there is no need to "stay relevant to borrowers".
I have read that they are at least considering taking on loans themselves.  I'm not a financial whiz but that would compromise the cash they have --as far as I understand it

Rob L

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Re: BRV Requests: Responses from Lending Club
« Reply #77 on: May 26, 2016, 08:52:10 AM »
I have read that they are at least considering taking on loans themselves.  I'm not a financial whiz but that would compromise the cash they have --as far as I understand it

I believe it was mentioned as an option in their latest 10-Q filing if I remember correctly.