Vish_ram Posted December 21, 2014 Share Posted December 21, 2014 A fascinating company that does peer to peer lending that I'm trying to understand. I know there's an old LC discussion in general section about being a lender. Trades at nosebleed valuation: market cap 9+BB, revenue 9 mos of 2014 - 143MM. lots of competitors like ondeck are IPO'ed. LC doesn't take credit risk. Both borrowers and lenders (investors) are benefiting with better rates. LC has funded 6BB loans in 2014 and it is doubling every year. A big trend now is to use LC for paying credit card debt with LC loans. Being long BAC, I'm wondering if traditional banks will go the way of Borders, Radio shack etc. Silicon valley has finally cracked the financial industry. If this industry plays its cards right, we'll eventually see the decline and fall of big banks. They are big, fat, dumb, happy & going to be easy targets.The millennials may finally abandon brick and mortar banks. Good reads: sec filing prospectus http://ir.lendingclub.com/Cache/26520686.pdf?IID=4213397&FID=26520686&O=3&OSID=9 http://www.foundationcapital.com/downloads/FoundationCap_MarketplaceLendingWhitepaper.pdf http://www.lendacademy.com/Understanding-Peer-to-Peer-Lending.pdf Link to comment Share on other sites More sharing options...
mttddd Posted December 21, 2014 Share Posted December 21, 2014 Well that nosebleed valuation turns me off. But my main concerns are That as they grow are they going to be able to deal with any regulatory issues? Alot of these startup type companies are kind of skirting the laws at the moment. How long before the government decides to try and regulate them? They currently are very picky about who they loan money to, rejecting 90% of loan applications (based on an article from 2021 idk if that has changed). I have to imagine if they run into any trouble growing that number is going to go down. What kind of moat do they have? As you mentioned there are a lot of competitors, I would imagine when it comes to loans people are pretty willing to shop around for the best rate. All that asside i am a bit fascinated watching these recent tech IPOs. I am just waiting to see what kind of ridiculous valuation Uber ends up getting.. Link to comment Share on other sites More sharing options...
moody202 Posted December 21, 2014 Share Posted December 21, 2014 Let's bypass all of these -- BOA, LC....I'm interested in a loan. Anyone interested in lending? Link to comment Share on other sites More sharing options...
randomep Posted December 21, 2014 Share Posted December 21, 2014 Let's bypass all of these -- BOA, LC....I'm interested in a loan. Anyone interested in lending? How much do you need? Link to comment Share on other sites More sharing options...
moody202 Posted December 21, 2014 Share Posted December 21, 2014 Let's start with 500K secured by Real Estate! Let's bypass all of these -- BOA, LC....I'm interested in a loan. Anyone interested in lending? How much do you need? Link to comment Share on other sites More sharing options...
fareastwarriors Posted May 9, 2016 Share Posted May 9, 2016 Lending Club's CEO resigns after internal probe http://finance.yahoo.com/news/lending-clubs-ceo-resigns-internal-113330022.html Link to comment Share on other sites More sharing options...
winjitsu Posted May 12, 2016 Share Posted May 12, 2016 http://www.wsj.com/articles/lendingclubs-ties-to-fund-under-fire-1463011193 Link to comment Share on other sites More sharing options...
fareastwarriors Posted May 12, 2016 Share Posted May 12, 2016 Chanos Was Short LendingClub Citing ‘Problems’ With Model http://www.bloomberg.com/news/videos/2016-05-12/jim-chanos-on-cheniere-energy-industry-and-lendingclub Link to comment Share on other sites More sharing options...
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