The troubled peer-to-peer lender named Scott Sanborn to replace ousted CEO Renaud Laplanche. It is also cutting its workforce as Fred Katayama reports.
Lending Club taking steps to try to win back the confidence of investors. The world's largest peer-to-peer lender said acting CEO Scott Sanborn would replace the CEO it ousted last month, Renaud Laplanche. A probe found that Laplanche and three family members took out 32 loans worth $25,000 to try to push up loan volumes but have since repaid them. Under Laplanche's watch, staff had also falsified documentation in selling loans to a big investor. Lending Club announced two more moves tied to its weak business. It'll cut 12 percent of its workforce and take a charge of $3 million to cover the job cuts. It expects loan originations to fall by a third quarter-over-quarter. Veteran financial services analyst Henry Coffey said, "None of this will turn the tide." Lending Club shares, down 40 percent since Laplanche left, rose in early trading ahead of its delayed shareholders meeting later today.