The LendingClub Distraction

Last week the nascent marketplace-lending industry—online platforms that match willing lenders and borrowers—suffered some setbacks. First, Renaud Laplanche, the CEO of LendingClub, the nation’s largest marketplace lender, resigned amid questions about lending practices. The next day, the Treasury Department issued a report suggesting that the platforms need additional federal oversight. And with LendingClub’s stock down more than 60% in 2016, some analysts have predicted the demise of this once-promising business model.