LendingClub Loan Buyers Retreat After Shakeup

Investors who “contributed a significant amount of funding” for loans have paused purchases to examine their performance “or are otherwise reluctant to invest,” the San Francisco-based company said Monday in a regulatory filing. The retreat is hurting the company’s ability to field new loan applications, it said. Meantime, the Justice Department sent a grand jury subpoena seeking information, and the Securities and Exchange Commission is examining what happened, LendingClub wrote, noting it plans to cooperate. “No assurance can be given as to the timing or outcome of these matters.”