Peer-to-peer lending firm Lending Club is bringing new senior staff on board in an attempt to once again win favour with investment banks.
The company, which saws its losses widen from $4.1m to $81.4m, in the second quarter is hiring two Wall Street executives to rebuilt its relationship with banks.
The company’s reputation took a major knock that saw many banks pulled their purchases of Lending Club’s loans following the ousting of company CEO Renaud Laplanche for failing to report a personal stake in an investment fund to which loans were sold.
Valerie Kay, formerly at Morgan Stanley, is now joining Lending Club’s investor group as head of institutional clients, while Raman Suri, who previously worked at BlackRock, will deal with retail investors.
The hires coincide with a new report from Orchard Platform that claims the total value of new online loans in the US dropped 34% quarter on quarter in Q2 2016. The drop off in loan origination highlights the industry-wide shake in confidence caused by the turbulence at Lending Club.
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