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09-28-2018, 03:52 PM #1Karen37aGuest
LendingClub unit, two former execs to pay $4.2M to settle SEC fraud charges
LendingClub unit, two former execs to pay $4.2M to settle SEC fraud charges
https://seekingalpha.com/news/339380...-fraud-charges
LCA and Laplanche caused one of the private funds it managed to purchase interests in certain loans that were at risk of going unfunded, to benefit LendingClub, not the fund, in breach of LCA’s fiduciary duty, the SEC says.
This is what happens when you are regulated and or a public company and you cook the books ( change or hide your actual losses and other things) and do not protect the investor's money when you have a fiducary responsibiltyLast edited by Karen37a; 09-28-2018 at 03:58 PM.
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09-28-2018, 04:05 PM #2Karen37aGuest
https://dailyfunder.com/showthread.p...t=lending+club
Lending clubs sales and marketing expenses are around 43% of revenues. Which is the reason I am always saying that independent sales people CANNOT be replaced no matter how hard people try.
There are no ways that I have ever seen to date to have some type of automated process for people to just walk up, like in a bakery, take a number and buy something. Certain companies cutting commissions, holding onto renewals, should feel the slow down of submissions and profits, in the future.
There has to be some driving force..like isos and isos have agents, fronters/ closers/ telemarketers. Single person Isos.And nothing replaces the phone...good ole cold calling. Its hard, when you are not good at it you get beat up.
The problem I have had my whole life cultivating sales forces is tolerating the crazy people who come onto my team who try to invent new and improved ways to find clients.
Then there are always the people who are selling the new and improved ways to market,new and improved ways to get rich with out cold calling and the people with a dollar and a dream get conned right into it.
What lending club did..misstating the grade of paper and selling it....tranches. Is deplorable. What on earth was he thinking? He didn't have enough money?
(The problem with public companies is they are pressured to make more profit ,Quarter to Quarter or they are going to get rid of the people in charge. So the people in charge cut corners. So they can stand their and smile when the earnings come out.How do you keep increasing profits qtr to qtr, once you get to a certain size..i guess inflation will eventually help)
This and other companies massive losses on wall st will tighten up money from investors. Especially for a few companies that were going to go IPO...not happening now.
People have a short term memory though, people get obliterated in markets only to come back again and invest...dollar and a dream.And the people who sell the dream will be waiting.
Its like criminals who go to jail, they don't rehabilitate, they just go there to learn how to not get caught the next time.
I still have a bunch of investors who want to give me money to participate in deals, partner with me in syndication and they don't even know how these advances work because
Greed is Good.....Gordon Gekko
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