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Lending Club CEO resigns; internal probe of loan selling

Lending Club CEO resigns; internal probe of loan selling | iNFOnews.ca
FILE - In this Dec. 11, 2014, file photo, Renaud Laplanche, founder & CEO of Lending Club, arrives on the floor of the New York Stock Exchange, prior to his company's IPO. Lending Club Chairman and CEO Laplanche is resigning after the online lender says it conducted an internal probe related to issues with how a loan was sold to an investor. (AP Photo/Richard Drew, File)

NEW YORK – Lending Club Chairman and CEO Renaud Laplanche is resigning after the online lender says it conducted an internal probe related to issues with how a loan was sold to an investor.

Shares of LendingClub Corp. fell 25 per cent early Monday.

San Francisco company says $22 million in loans sold in March and April to an investor did not meet that investor’s criteria. The company repurchased those loans and sold them to another investor. Lending Club says a senior manager at the company changed the application dates on $3 million worth of loans.

President Scott Sanborn will now serve as acting CEO.

Shares of Lending Club fell $1.80 to $5.30 after the opening bell.

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