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Lending Club plans layoffs, discloses loans to former CEO and family members

latimes.com

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Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#41

Post by pbarnes_1 »

deelowe wrote: post #18
mikestew wrote: post #4

Stock's up 7% as I write this. I'm assuming nothing has been revealed that isn't already at least suspected, and layoffs are generally good for a stock's price. I've already made money on one dip-and-bounce, but currently in at 4.88, so here's hoping it will claw it's way back a little bit. I'm in no way qualified to declare a bottom, but I'm guessing all of the bad news is out of the way. This in no way constitutes…

The entire market is bouncing back from brexit.

Except Google, which is down 1%... :)

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#42

Post by maxerickson »

a_t48 wrote: post #36
maxerickson wrote: post #31

Earlier quoted context omitted.

Do you think your users know you are doing analytics on their transactions?

Can you name a major successful mobile application that you think _doesn't_ use analytics?

I dunno, wouldn't the better question be if I am at all comfortable using a third party app for financial transactions? Because I'm not. But I'm not super concerned about me, I'm curious how the thinking goes when someone decides to collect information about the loans that other people are taking out.

Maybe they are pretty sure that users understand it, the app could have a strong disclosure for all I know.

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#44

Post by reitanqild »

maxerickson wrote: post #31
seibelj wrote: post #2

As someone who built the most popular iOS / Android app for Lending Club investors [0], I can tell you that since the CEO resigned - New users have fallen by 50% per month, although of course users to my app are a fraction of total new users, but you can extrapolate - Total net, users are withdrawing about as much money as users are putting in - The amount of loans purchased has dropped significantly So without a dou…

Do you think your users know you are doing analytics on their transactions?

Now that I think of it I would almost find it scary if they didn't.

All fine with me as long as they are aggregated statistics for a reasonable sized population of users.

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#45

Post by seibelj »

maxerickson wrote: post #42
a_t48 wrote: post #36

Earlier quoted context omitted.

Can you name a major successful mobile application that you think _doesn't_ use analytics?

I dunno, wouldn't the better question be if I am at all comfortable using a third party app for financial transactions? Because I'm not. But I'm not super concerned about me, I'm curious how the thinking goes when someone decides to collect information about the loans that other people are taking out. Maybe they are pretty sure that users understand it, the app could have a strong disclosure for all I know.

There is a rich ecosystem of LC apps and services because of LC's open API. The only thing the API's allow you to do is invest in loans and transfer money in and out of your account. I would be quite shocked if any service (such as lending robot) is able to operate without recording any transactions occurring. I hope users wouldn't be offended by the (very general) information revealed above, but I suppose some could.

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#46

Post by thaumasiotes »

jsemrau wrote: post #29
d4rti wrote: post #23

Earlier quoted context omitted.

on demand car hailing = taxis?

For me still this equation holds true. Taxes are abundant and cheap in Singapore. Riding in someone's car makes me uncomfortable. (But that is just me, I suppose)

Taxis are abundant and cheap in Shanghai... unless it's raining (very common). Then they won't pick you up at all. They're still driving around, but you can't actually get one.

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#47

Post by igk »

zaidf wrote: post #11
rando18423 wrote: post #6

Wow, so the crown of the "fintech" movement is just as bad as the banks, and the two biggest Silicon Valley successes of the last decade, Uber and AirBnB, are really just cases of massively successful regulatory arbitrage. Nice innovation!

You can apply your logic to basically any entity in history to belittle them. Everything can be positioned as a "massive case of blah " if that is your goal.

Disagree. Transistor, car, heck even the iPhone (and I say this as a massive hater against apple) are not describable by this. Neither is anything which 1) actually solves a problem 2) in a legal way (Airbnb is pushing legislation, Uber is breaking it, and it appears lending club simply commited fraud)

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#48

Post by amalcon »

acchow wrote: post #9
rando18423 wrote: post #6

Wow, so the crown of the "fintech" movement is just as bad as the banks, and the two biggest Silicon Valley successes of the last decade, Uber and AirBnB, are really just cases of massively successful regulatory arbitrage. Nice innovation!

People have dreamt about on-demand car hailing for a long time, but it's always been a pipe dream - building the two-sided network is such too hard and too expensive, and a small network is just not worth using as a consumer. How is this not innovation?

Most of the innovation there was in the cell phone[1]. You've been able to order a car by phone in major metros for longer than those have been around. In fact, Uber started off as an app for using those very services.

Props to Uber for execution, but all the pieces were there.

[1]-edit: some in the smartphone, but most in the old "makes calls" cell phones

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#50

Post by ellius »

jacquesm wrote: post #24
ilamont wrote: post #10

The latest disclosures Tuesday, uncovered by a company probe, found that in the last few weeks of December 2009, Laplanche and three relatives took out 32 loans for a total of $722,800. All but three of those loans were repaid in full over the next two months, implying they were taken out to artificially goose Lending Club’s loan origination numbers. If true, would that be considered fraud?

Nah, that's 'growth hacking' /s. Really, yes obviously that's fraud but apparently it's perfectly normal as long as you don't get caught . Artificially inflating the numbers whilst shopping for investments is definitely not acceptable. Pumping money around is an old trick to inflate the visible size of a company, some of these schemes are surprisingly hard to detect (the one here definitely isn't). I'm somewhat surpr…

Yep. Self-dealing is always an enormous red flag for fraud and other shadiness, in financial businesses especially.
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