Lending Club (NYSE:LC), a peer-to-peer online lending company, has sunk 63% year to date and lost its CEO Renaud Laplanche, who resigned Monday after an internal investigation found sales of $22 million in near-prime loans to a single investor, contrary to the investor’s instructions.
The New York Times reported that a Lending Club employee found the dates on $3 million of loan applications had been altered and alerted Laplanche, who then told an internal auditor. That investigation would also reveal discrepancies in the aforementioned $22 million of loans. The company also discovered Laplanche had failed to disclose a personal interest in an investment fund in which Lending Club was considering investing. Continue Reading »