May
16
LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
By-
Firm got grand jury subpoena from Justice Department last week
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Company is considering new ways to draw funding for its loans
LendingClub Corp., which plunged 51 percent last week after the surprise departure of its leader and disclosure of faulty internal controls, said the scandal is prompting investors to suspend debt purchases and spurring government probes.
Investors who “contributed a significant amount of funding” for loans have paused purchases to examine their performance “or are otherwise reluctant to invest,” the San Francisco-based company said Monday in a regulatory filing. The retreat is hurting the company’s ability to field new loan applications, it said…
LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
