Lending Club Crashes Near Record Lows After Slashing Guidance

Jon Alternative Media, Banking, Blogosphere, Economy

Despite record high stocks, record high consumer confidence, and ‘full’ employment, LendingClub is struggling to originate high-enough quality loans – crashing almost 20% after slashing its Q4 outlook.
CEO Scott Sanborn on LendingClub’s conference call pointed to a new credit model that represents “a tightening with an overall shift to higher-quality grades and higher quality approvals within grades,” and said Equifax’s significant data breach “has put consumers on edge.”
The stock is now back near record lows…

Analysts are watching what the company will say at its Dec. 7 investor day; some cut their price targets…
MORGAN STANLEY (James Faucette)
3Q shows “credit box setback,” with origination growth hurt as LC tightens credit, re-calibrates marketing with launch of 5th gen credit model Targets expected at investor meeting will “weigh heavily”

This post was published at Zero Hedge on Nov 8, 2017.