Lending Club debacle ignites industry soul search, ABS concerns

Lending club
By Sasha Padbidri
12 May 2016

The sudden departure of Lending Club CEO Renaud Laplanche has shaken observers’ faith in online lending. ABS market sources say that it has exposed another crack in a sector already plagued by legal action, regulatory pressure and doubts over its robustness. Sasha Padbidri reports.

The news, which marked the fall from grace of one the founding fathers of marketplace lending, sparked an industry wide soul search. Even some in the ABS market say that risks of securitizing marketplace loans have been amplified.

“The brakes are fully pressed,” an ABS investor told GlobalCapital. ...

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