Author Topic: You have to love Wall Street  (Read 11842 times)

nonattender

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Re: You have to love Wall Street
« Reply #15 on: June 09, 2016, 11:52:57 AM »
Putting the guy who was lax on compliance back in charge of this business would be a big mistake.  Isn't this obvious?  :-\

The board did not accuse him of being "lax on compliance".

"Tone At The Top" - which is the exact phrase that the board used in the firing filing - is a "term of art" with a fairly definite meaning:

https://en.wikipedia.org/wiki/Tone_at_the_top

« Last Edit: June 09, 2016, 11:55:25 AM by nonattender »
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rawraw

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Re: You have to love Wall Street
« Reply #16 on: June 09, 2016, 02:42:07 PM »
Nope.  Can't happen.  Our prospectus promises us that there the company will not take on indebtedness that is senior to ours.

Where in the prospectus?? You mean they $100mm+ bank credit line they have is not senior to the note? Anyway even if it's equal seniority, it's bad for the note holders.

Go to the bottom of LC's main page.  Click on "prospectus".  Select the main 2014 prospectus from the list.  Look at page 5.
Quote
The Notes will not be contractually senior or contractually subordinated to any other indebtedness of Lending Club.

Later there's a section that goes into more detail.
I'd love for this to be correct, I'll have to read later. But I have trouble imagining that line they took out isn't at least pari passu.  If the above is true, I'd have to readjust my risk outlook. Strange I've never noticed

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Fred93

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Re: You have to love Wall Street
« Reply #17 on: June 09, 2016, 04:03:55 PM »
I think you might either be reading what you want to see or maybe not reading this enough like an engineer.

I take offense at that, Sir.  Pistols at 40 paces?

I did a little legal research to figure out what "contractual" means in that context.  If you google "contractual subordination" you get a lot of stuff.  Apparently very common term.  According to various legal web sites, there are two kinds of subordination, "contractual subordination" and "structural subordination".  (Hey, I know these aren't authoritative legal books, but I don't own those books.)  Here's my legal tenderfoot summary: Structural is via debt at different subsidiaries, and contractual is everything else.

Read about it here...
http://convertarb.net/?page_id=781

So my understanding is that we're protected against everything except that they could form a subsidiary, and put debt there, and have that debt get first grab on assets in the subsidiary.   In fact, that's exactly how a BRV works, so excluding structural subordination was necessary to allow BRVs.

Fred93

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Re: You have to love Wall Street
« Reply #18 on: June 09, 2016, 04:12:29 PM »
Go to the bottom of LC's main page.  Click on "prospectus".  Select the main 2014 prospectus from the list.  Look at page 5.
Quote
The Notes will not be contractually senior or contractually subordinated to any other indebtedness of Lending Club.
I'd love for this to be correct, I'll have to read later. But I have trouble imagining that line they took out isn't at least pari passu.  If the above is true, I'd have to readjust my risk outlook.

Just to be clear: I believe they are pari passu.  (Without the legal geek speak: "ranked equally".) 
« Last Edit: June 09, 2016, 04:57:02 PM by Fred93 »

nonattender

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Re: You have to love Wall Street
« Reply #19 on: June 09, 2016, 04:29:45 PM »
I think you might either be reading what you want to see or maybe not reading this enough like an engineer.

I take offense at that, Sir.  Pistols at 40 paces?

I believe slide rules at 10 meters is traditional. :)

(Do I need to mention "no pocket protectors"?)

ETA:  BTW, speaking of "pocket protectors", here's one implementation:  http://www.lendacademy.com/forum/index.php?topic=583.0
« Last Edit: June 09, 2016, 06:58:51 PM by nonattender »
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bobeubanks

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Re: You have to love Wall Street
« Reply #20 on: June 09, 2016, 04:41:12 PM »
"Tone At The Top"

Isn't Tone at the Top a workout video by Jane Fonda? Now available on VHS and Beta.

bcartpa

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Re: You have to love Wall Street
« Reply #21 on: June 09, 2016, 05:03:18 PM »
Quote
Isn't Tone at the Top a workout video by Jane Fonda? Now available on VHS and Beta.

LOL!
Individual Investor on Lending Club since 2013 and creator of the P2P Investor Kit, automation software for Lending Club investors: www.p2pinvestorkit.com

nonattender

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Re: You have to love Wall Street
« Reply #22 on: June 09, 2016, 05:25:05 PM »
"Tone At The Top"

Isn't Tone at the Top a workout video by Jane Fonda? Now available on VHS and Beta.

Yes, I believe you get 10,000 copies of it (with Chinese subtitles) if you invest in Kickfurther and they have to recover the "assets"... ;)
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Fred93

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Re: You have to love Wall Street
« Reply #23 on: June 11, 2016, 12:23:21 AM »
Here's some Wall Street insight.  (Pls don't attack me.  I'm not the guy who made either prediction.  I'm just the messenger.  I'm pretty sure that at least one of these is bonkers.)

http://www.lmkat.com/2016-06-10-fbr-co-weighs-in-on-lending-clubs-fy2016-earnings-lc/
Quote
FBR & Co. analyst B. Ramsey now forecasts that the firm will earn ($0.01) per share for the year, down from their previous forecast of $0.09. FBR & Co. currently has a “Market Perform” rating and a $4.00 target price on the stock.
...
RBC Capital started coverage on shares of Lending Club in a research note on Wednesday, March 16th. They issued an “outperform” rating and a $92.00 price objective for the company.

Edited to add: If anybody has access to that RBC report, please share with us what logic and calculations got them to that $92 number.
« Last Edit: June 11, 2016, 12:49:49 AM by Fred93 »

jz451

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Re: You have to love Wall Street
« Reply #24 on: June 11, 2016, 01:42:06 AM »
I don't know but I'll have whatever they are drinking.


Here's some Wall Street insight.  (Pls don't attack me.  I'm not the guy who made either prediction.  I'm just the messenger.  I'm pretty sure that at least one of these is bonkers.)

http://www.lmkat.com/2016-06-10-fbr-co-weighs-in-on-lending-clubs-fy2016-earnings-lc/
Quote
FBR & Co. analyst B. Ramsey now forecasts that the firm will earn ($0.01) per share for the year, down from their previous forecast of $0.09. FBR & Co. currently has a “Market Perform” rating and a $4.00 target price on the stock.
...
RBC Capital started coverage on shares of Lending Club in a research note on Wednesday, March 16th. They issued an “outperform” rating and a $92.00 price objective for the company.

Edited to add: If anybody has access to that RBC report, please share with us what logic and calculations got them to that $92 number.

AnilG

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Re: You have to love Wall Street
« Reply #25 on: June 11, 2016, 01:57:26 AM »
IMO, one of the reporting service messed up in scrapping report or data entry and now everyone else is running with the error. It mixed up Lam Research Corporation (LRCX) with Lending Club (LC). RBC Capital issued a report 03/16/2016 on LRCX with Price Target of $92.00 and Outperform Rating.

Also the linked article appears to be computer generated. It has that vibe of robo-writer filling in the blanks.

Here's some Wall Street insight.  (Pls don't attack me.  I'm not the guy who made either prediction.  I'm just the messenger.  I'm pretty sure that at least one of these is bonkers.)

http://www.lmkat.com/2016-06-10-fbr-co-weighs-in-on-lending-clubs-fy2016-earnings-lc/
Quote
FBR & Co. analyst B. Ramsey now forecasts that the firm will earn ($0.01) per share for the year, down from their previous forecast of $0.09. FBR & Co. currently has a “Market Perform” rating and a $4.00 target price on the stock.
...
RBC Capital started coverage on shares of Lending Club in a research note on Wednesday, March 16th. They issued an “outperform” rating and a $92.00 price objective for the company.

Edited to add: If anybody has access to that RBC report, please share with us what logic and calculations got them to that $92 number.
« Last Edit: June 11, 2016, 01:59:46 AM by AnilG »
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Fred93

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Re: You have to love Wall Street
« Reply #26 on: June 11, 2016, 02:12:07 AM »
IMO, one of the reporting service messed up in scrapping report or data entry and now everyone else is running with the error. It mixed up Lam Research Corporation (LRCX) with Lending Club (LC). RBC Capital issued a report 03/16/2016 on LRCX with Price Target of $92.00 and Outperform Rating.

That's the most rational explanation I can imagine.

Quote
Also the linked article appears to be computer generated. It has that vibe of robo-writer filling in the blanks.

Yea, dontcha hate that.  A few years ago I started calling them "echos".  Something will appear one place online, and then within hours lots of echos appear.  Someone looking around to check a fact is presented with dozens of apparently corroborating stories.  I found 5 articles containing this particular "fact", but I couldn't access the source.