Michael P. Regan, Columnist

Kicked Out of the LendingClub

Investors were already growing skittish about peer-to-peer lending.

May 9, 2016 at 6:15 PM UTC

Michael P. Regan is the global team leader for cryptocurrencies at Bloomberg as well as a former senior markets editor and former Americas team leader for Bloomberg's Markets Live blog. He has covered Wall Street for Bloomberg News as a columnist and editor since 2007. He previously worked for the Associated Press.

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

Let's go out on a limb and say that if you own the stock of a company, this is not exactly what you want to hear on the post-earnings conference call. From the transcript:

Please do explain, Mr. Unverified Participant, we're all dying to hear! This unverified soul on LendingClub's conference call was Hans Morris, a board member and chairman of its risk committee who was just promoted to the new role of executive chairman. He was on the call to explain why the founder and chief executive officer, Renaud Laplanche, and other executives were getting kicked out of the club over a hodgepodge of head-scratching discoveries, including irregularities involving $22 million in near-prime loans sold to an investor, a change in application dates on some loans to make them eligible for sale to the investor and failure to disclose an executive's personal interest in an investment fund that bought loans from the company.