The recent shakeup at Lending Club has provided plenty of interesting (occasionally gossipy) insights into the world of marketplace lending. A recent Bloomberg article looks at the role that Wall Street insiders like John Mack (a Lending Club board member and former CEO of Morgan Stanley) played in the rise (and recent stumbles) of Lending Club:
Behind the LendingClub drama is a cast of Wall Street actors, with Mack starring in roles of counselor, promoter and personal investor. Together, these players opened doors to critical funding, including from wealthy investors and a Wall Street machine eager to control — and profit from — a fast-growing corner of financial technology, or fintech.
The entire article is worth your time. As is Mercator’s recent research note, Bad News Comes in Threes: Assessing the Future of Marketplace Lending.
Overview by Alex Johnson, Director Credit Advisory Service at Mercator Advisory Group
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