Why Is No One Talking About LendingClub Stock? | 28.02.21 | finanzen.at

+++ ₿₿ +++ Handeln Sie mit Kryptowährungen mit Hebel - Jetzt mehr erfahren!** +++ ₿₿ +++-w-
28.02.2021 14:15:00

Why Is No One Talking About LendingClub Stock?

It's been a difficult six years for LendingClub (NYSE: LC) as a public company. After coming to market in late 2014 as a new-age fintech platform at a $5.4 billion valuation, the company has since plunged to just a fraction of that, with a current market cap of only $850 million. So, what happened to LendingClub? Things started going wrong in 2016, when its founder and former CEO, along with some executives, were caught doctoring some details on loan requirements in order to move more loans through its platform. LendingClub had set itself up as a peer-to-peer lender, with retail investors buying high-yield loans from borrowers. LendingCLub acted as a scaled "marketplace," offering investors diversified pools of parts of loans, while borrowers could get personal loans at lower rates than credit cards, since LendngClub didn't have any brick-and-mortar infrastructure.The thing was, LendingClub was dependent on volume, and it seems the founder cut corners in pursuing growth. Not only that, but LendingClub's loans started to experience increased chargeoffs in 2016 as the economy slowed.Continue reading
Weiter zum vollständigen Artikel bei "MotleyFool"