I closed position on Lending Club (LC) today because;
- CEO Renaud Laplanche resigned along with 3 top managers after internal audit discovered loans were brought against customer's instructions. Limited details were provided but the fact that the founder and CEO had to resign doesn't make me want to wait to fully understand.
- Profits lower than expected, $0.01 versus $0.05 consensus.
- Stock has underperformed market for last 3 quarters despite beating expectations. This, coupled with ethics questions, could mean they were cooking the books.
- There at least a small probability that traditional banking interests are colluding against loan market places, but it's time to shoot first and ask questions later.
- Sad day for the revolution in banking :(
Price: $5.45
Trade/Portfolio: 4.70%
Position/Portfolio: Closed
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