Yesterday Lending Club reported its earnings for the 2nd quarter ended in June. The company lost $81 million, or 9 cents/share in the quarter which is worse than the $4 million loss for the same period last year.
Most of the loss is attributed to additional expenses for a combination of additional professional fees (read: legal) on the LaPlanche loan mess and DOJ investigation as well as compensation and severance packages for laid off employees.
Loan originations were $1.96 Click Here To Continue
I wish I had a quarter for everytime I've heard that Marketplace Lending/Peer to Peer Lending specifically, and FinTech generally are a revolution to the world of finance.
Revolutions need leaders.
Who would Martin Luther King have been able to look up to for examples of peaceful, effective, non-violent civil disobedience if there was no Gandhi? How would MLK have been able to use this example to advance the Civil Rights movement here in America if he hadn't seen it in action already?
MLK Click Here To Continue
Bitcoin exchange and lending platform Bitfinex has been hacked and reports say up to $70-72 million worth of Bitcoin was stolen.
Their own reporting of it is in a post on their blog right here.
Any attempt to login to the platform shows this message regardless of if you have any BTC there or not:
I happen to not have any BTC there at the moment although I do have USD there. My dollars are there although I have no open loan positions.
Updates are given at their Status Click Here To Continue
Madden v Midland Funding
Some of you may have heard about this case and that it may/might/could/is already affecting marketplace lenders.
Miss Madden had a Bank of America credit card and defaulted on her payments. Midland Funding is a debt buyer and collection agency based in San Diego. Midland bought the debt of Miss Madden, who is a NY resident, and added additional interest costs to her debt balance and tried to collect the total. Madden thought this was wrong and filed suit.
In Click Here To Continue
Lending Club has been in the news alot lately and most of it bad.
Let's face it, Lending Club is not the only marketplace/peer to peer lender but they are the largest here in the US and they are definitely the face and the barometer of the industry.
Lots of things are going on in the industry and it would not be unreasonable to ask yourself Is Marketplace Lending Still Safe? The answer is Yes it is but we need to understand the risks.
More Regulation Coming
After the Lending Club loan sales Click Here To Continue
Another month has come and gone on my AutoInvest plan so let's check results.
Due to my slacking on my investment responsibilities, I have yet to implement my AutoInvest on Bitbond so my only option now is still Loanbase. Let's see how I did.
This month has a little more red on it than the previous 2 and this was something I expected. The repayment history is still pretty strong though as 2 of these loan payments (1 paid, 1 not) were loans I selected and the other 72 were from my AutoInvest Click Here To Continue
You may have heard of the Lending Club shakeup in their executive team last week. The shakeup came from the fraud the former executives perpetrated on a small subset of loans. In response to these actions, the new CEO Scott Sanborn wrote a letter to larger investors about what happened, what they are doing, and how they are looking at and managing data in the future.
I was able to get a copy of this letter and short presentation and have it available for you to read. You can download it right Click Here To Continue
Lending Club CEO Renaud Laplanche, generally regarded as the face of marketplace/p2p lending has resigned his position at Lending Club.
The resignation is based on the discovery that $22 million worth of loans were knowingly sold to an investor when the loans did NOT meet that investors buying criteria. It's yet to be seen if additional executives or employees will be let go or not although the CNBC articles says 3 other senior managers were let go too.
It should be noted that the loans were Click Here To Continue
To say that I have learned some things from this Auto Invest experiment is quite the understatement. So far Loanbase is really up to the task. I'm going to have to launch my Bitbond program soon based on these results. Let's look at the results in more detail for April after a profitable March.
Last month I did a loan by loan assessment, which you can see on my March report here. Going forward I will be tracking total ROI (return on investment) or ROIC (return on invested capital).
Let's Click Here To Continue
This week the largest conference in the peer to peer/marketplace lending industry, LendIt 2016, is going on. In the days leading up to the conference, I got the chance to speak to lots of movers and shakers including platform operators. One of the most interesting lending platforms out there is a new area for p2p lending but one of the oldest forms of financing, POS financing or financing at the Point of Sale.
How many of you are old enough to remember when stores used to do lay away? The Click Here To Continue