There is speculation that LendingClub Corp (NYSE:LC), the online peer-to-peer lender is working with money manager Western Asset for a deal.
This speculation is further emphasized with the rise of LendingClub shares on Friday.
LendingClub, recently struggling, rose 4% to $4.78 per share on the New York Stock Exchange. This jump in share price is due to the fact that Western Asset shortly before announced that a fund is being established to buy as much as $1.5 billion in loans overtime.
Analysts state that they are not surprised byLendingClub’s action. Going to Western Asset for financing. LendingClub also proceeded to hire a former Blackrock, Inc (NYSE:BLK) executive, Patrick Dunne. Patrick’s role is as a chief capital officer, implemented as of July. It was indicated by Colin Plunkett that this move via LendingClub directs an interest to both mutual funds and ETF’s.
The beginning of the struggles for LendingClub aspired from when former CEO Renaud Laplanche resigned due to uncovering that the company had sold loans to Jeffries LLC (NYSE:JEF) which did not meet the criteria specified by the investor. An investigation is in progress from the department of justice.
To the attribute of LendingClub, they took quick action. Immediately an internal investigation was launched. Furthermore, a new CEO Scott Sanborn was appointed as the new CEO. Hans Morris, who was responsible for the temporary occupation of chairman of the board was awarded that position permanently. 179 jobs were also cut in order to save total expenses.
Despite all the actions that LendingClub has taken to try to rectify the past injuries to the company. It is still fighting the battle to recoup the 40% decline in its share price. Despite the stock rallying a $1 per share. It is still well below the norm of $8 per share which is previously had acquired.