Lending Club / National Bank of Canada deal

[Debt Free]

"Shares of LendingClub Corp. (NYSE:LC) are up by about 17% as of 10:36 a.m. EDT on Monday. The company announced a sequential increase in originations and a new deal with National Bank of Canada (TSX:NA), in which the Canadian bank will purchase up to $1.3 billion of loans from its platform over the next 12 months through its U.S. consumer lending subsidiary."

Thoughts?  Diminishing retail investor support?

[Fred93]

In the big picture, this is not really news.  We know LC has been working deals to get banks to buy loans.  This is just one of those.  There will be many more.  If I were LC, I would write a press release for each, and that's what you see.

[rawraw]

I'm glad to see they're realizing how to properly structure their business.  One step away from being a glorified mortgage originator ha ha

[Debt Free]

They ought to turn the tables and allow the banks to buy those loans which the retail investors do not want.  Give us first crack rather than the other way around and giving us the dregs.  Limit the banks to one week after listing so they can scoop up whatever is left.

[Fred93]

They ought to turn the tables and allow the banks to buy those loans which the retail investors do not want.  Give us first crack rather than the other way around and giving us the dregs.  Limit the banks to one week after listing so they can scoop up whatever is left.

Won't work.  Banks buy whole loans, so that they end up OWNING the loan, and have the ability to service the loan themselves etc if LC were to go away.  Banks already pass regulatory muster wrt to loan servicing, etc, so they can do this.  The legal issues for banks who would own LC notes would be completely different, and more complex. 

[rawraw]

They ought to turn the tables and allow the banks to buy those loans which the retail investors do not want.  Give us first crack rather than the other way around and giving us the dregs.  Limit the banks to one week after listing so they can scoop up whatever is left.

Would you rather have 10% of a small pie or 100% of no pie?  The Company has to survive. . .

[Debt Free]

30-40% of a LARGE pie.

[rawraw]

30-40% of a LARGE pie.

Well then be a pleasant force on the platform and hope the big money allows LC to survive.   Otherwise, we will be buying credit card stocks for our consumer credit exposure.