Magazine article Global Finance

Ailing Lending Club Shakes Up Boardroom

Magazine article Global Finance

Ailing Lending Club Shakes Up Boardroom

Article excerpt

Renaud Laplanche, Lending Club's founder, chief executive and public face, resigned abruptly in mid-May. His resignation casts a pall over not only the peer-to-peer lender that claims to be the world's largest online marketplace connecting borrowers and investors, but also the shadow banking industry as a whole.

Shares in Lending Club fell 35% following a report that Laplanche had been ousted over lack of disclosure of some $22 million in loans sold to an institutional investor.

But the truth is that the decline in the value of Lending Club started much earlier and proves that disruptive finance can be a hard business. Placed at $15 per share in an initial public offering in 2014, Lending Club reached a $28 peak at the end of that year. Since then, it has declined steadily; the stock was trading at $3.50 a share in mid-May.

Lending Club was the biggest and by many measures one of the most successful companies in an industry once valued at $10 billion. …

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