Lending Club has chosen a new CEO to help guide it out of a lackluster 2016 fiscal year thus far.
Lending Club (NYSE:LC), a Peer-to-Peer (P2P)) lender, has shaken up its operations after the company navigated some dire straits over the past couple months – the strategy will see the installment of new CEO, along with 179 job cuts to its business in a bid to help rekindle its outlook and profit.
The decision comes during a time when share prices have been diving over the past few months, inflicting a series of blows on the P2P lender as it struggles with slower than expected growth expectations. After scoring a 52-week high of $17.52, shares of Lending Club have now settled at just $4.30 as of yesterday’s close.
Call for Leadership
The man tasked with reversing Lending Club’s fortunes is Scott Sanborn, a company mainstay, having served with the group for the past six years – he steps into the interim CEO role with immediate effect, following a snap resignation of the previous incumbent and founder Renaud Laplanche.
Mr. Laplanche's rapid fall from grace was instigated by an internal review that unearthed upwards of $22 million in near-prime loans that were sold to institutional investors that did not want them, consequently drawing a US Justice Department probe into the running of the company's loans book. In addition, Lending Club will be jettisoning 179 jobs, though did not specify what channel the cuts were relegated to.
According to a recent Lending Club statement on the job cuts: "In light of lower loan volumes in the second quarter and recognizing that fully restoring investor confidence may take time, the company has decided to reduce 179 positions in the organization."
Finally, Lending Club portended its loan originations in Q2 2016 to be lower than Q1 2016, which it hopes will see mitigated share reactions, already operating close to a 52-week low. For its part, the group has earmarked $15-$20 million of additional expenses related to the review and restructuring however, though investors are hoping that Sanborn will right the ship in the interim.
Lending Club (NYSE:LC), a Peer-to-Peer (P2P)) lender, has shaken up its operations after the company navigated some dire straits over the past couple months – the strategy will see the installment of new CEO, along with 179 job cuts to its business in a bid to help rekindle its outlook and profit.
The decision comes during a time when share prices have been diving over the past few months, inflicting a series of blows on the P2P lender as it struggles with slower than expected growth expectations. After scoring a 52-week high of $17.52, shares of Lending Club have now settled at just $4.30 as of yesterday’s close.
Call for Leadership
The man tasked with reversing Lending Club’s fortunes is Scott Sanborn, a company mainstay, having served with the group for the past six years – he steps into the interim CEO role with immediate effect, following a snap resignation of the previous incumbent and founder Renaud Laplanche.
Mr. Laplanche's rapid fall from grace was instigated by an internal review that unearthed upwards of $22 million in near-prime loans that were sold to institutional investors that did not want them, consequently drawing a US Justice Department probe into the running of the company's loans book. In addition, Lending Club will be jettisoning 179 jobs, though did not specify what channel the cuts were relegated to.
According to a recent Lending Club statement on the job cuts: "In light of lower loan volumes in the second quarter and recognizing that fully restoring investor confidence may take time, the company has decided to reduce 179 positions in the organization."
Finally, Lending Club portended its loan originations in Q2 2016 to be lower than Q1 2016, which it hopes will see mitigated share reactions, already operating close to a 52-week low. For its part, the group has earmarked $15-$20 million of additional expenses related to the review and restructuring however, though investors are hoping that Sanborn will right the ship in the interim.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!