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Why you shouldn't panic about the Lending Club scandal

This commentary was originally published on Medium.com.

So the CEO of Lending Club resigned. I wasn't expecting that. Folks have talked about how new, smaller marketplace lenders could make mistakes that impact the entire industry. Today, it appears to have come from the market leader.

So, what's going on?

It appears that an internal loan review, called for by the Lending Club Board, found irregularities in $22 million worth of loans geared towards one specific buyer. The irregularities were non-credit and non-pricing in nature. It also appears that at least one person internal to Lending Club had an economic interest in a loan portfolio, which was not disclosed. The board apparently took swift action upon the findings. And the CEO resigned.

What does this mean for the industry?

The situation and its implications are fluid, but here's what we know

1. Lending Club's fundamentals appear strong. This is important for the industry, because as the largest marketplace lender, they are looked to as a...


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