After embattled Lending Club was briefly halted as it postpones today’s shareholder meeting until June 28th because it is “not yet in a position to report on the state of the company,” the stock is trading down 5% as the desperate (for investors) lender decides to raise prices (interest rates) in this case for borrowers (and tighten up lending standards).

So a double whammy… Postponed Annual Shareholder Meeting…

On June 7, 2016, LendingClub Corporation (the “Company”) adjourned its 2016 Annual Meeting of Stockholders (“Annual Meeting”). Given the developments of the last few weeks, the Company is not yet in a position to provide its stockholders a complete report on the state of the Company. Accordingly, the Company will reconvene its Annual Meeting at 11:00 a.m. Pacific Time on June 28, 2016, with the same virtual meeting access.

…the Company is not yet in a position to provide its stockholders a complete report on the state of the Company. Accordingly, the Company will reconvene its Annual Meeting at 11:00 a.m. Pacific Time on June 28, 2016, with the same virtual meeting access

And raising rates…

under pressure to bolster investor confidence in the loans it arranges online, is boosting interest rates and tightening criteria for borrowers to qualify.

 

Interest rates will increase by a weighted average of 55 basis points, the co. said Tuesday in a regulatory filing

 

LC also lowered the ratio of debt-to-income that it allows applicants to have

It seems the market is questioning the entire firm’s businesss model…

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