"Shares of LendingClub Corp. (NYSE:LC) are up by about 17% as of 10:36 a.m. EDT on Monday. The company announced a sequential increase in originations and a new deal with National Bank of Canada (TSX:NA), in which the Canadian bank will purchase up to $1.3 billion of loans from its platform over the next 12 months through its U.S. consumer lending subsidiary."
Thoughts? Diminishing retail investor support?
In the big picture, this is not really news. We know LC has been working deals to get banks to buy loans. This is just one of those. There will be many more. If I were LC, I would write a press release for each, and that's what you see.
I'm glad to see they're realizing how to properly structure their business. One step away from being a glorified mortgage originator ha ha
They ought to turn the tables and allow the banks to buy those loans which the retail investors do not want. Give us first crack rather than the other way around and giving us the dregs. Limit the banks to one week after listing so they can scoop up whatever is left.
30-40% of a LARGE pie.