It is been a full 24-hour period of news for online lending marketplace Lending Club, which has seen its founding CEO depart, its stock price crater and the future of its entire lending niche questioned all in a very short period of time.
So how did things go so quickly sideways at a firm that was once the darling of tech investors, financial futurists and buzz makers everywhere? In the macro sense in dealing with the entirety of the alt lending ecosystem of online marketplace, the answers are complicated and hinge on changing economic conditions and a reverse network effect that is spinning up rapidly. In the specific case of Lending Club, an internal investigation that turned up some unsettling realities about irregularities inside the firm has sent the CEO packing at the alt lending marketplace reeling.
So what is the need-to-know data?
$151 million | Lending Club’s operating revenue in Q1 2016, an 87 percent year-over-year increase. Total originations were up 68 percent over Q1 2015.
$22 million | The dollar value of a sub-prime loan package an internal investigation found that Lending Club had knowingly and intentionally sold to an investor against that investor’s specific instructions.
$10 Million | The amount Lending Club paid for a 15 percent limited-partnership interest in Cirrix last year.
31 Percent | The amount of Cirrix that Lending Club CEO Renaud Laplanche and Lending Club Board member (and former Morgan Stanley CEO) John Mack owned at the time of Lending Club’s investment. Laplanche did not disclose those ownership stakes to Lending Club’s Risk committee at the time of the investment.
$5 | The closing price per share of Lending Club stock. The company saw its stock price tumble by 33 percent in a single day as the revelations started come to surface.
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