LendingClub will soon begin its search for a new chief executive to replace Renaud Laplaunche,
after having been blamed by the board for lending practices and lack of disclosure about a personal investment. According to The Wall Street Journal,
“The company’s problems were compounded after the U.S. Securities and Exchange Commission announced it was reviewing the company’s disclosures to investors.” The company is planning on investigating this further.
Anthony D’Angelo, APR, Fellow PRSA,
PRSA 2016 National Secretary, shared his thoughts about how LendingClub handled the crisis in The Wall Street Journal’s
“Crisis of the Week” column. He stated:
“Historically, Lending Club has disclosed less than traditional financial institutions. Especially now, it should disclose even more than them. It should display vivid transparency in demonstrating the incident was an anomaly; that it has instituted new, ironclad controls and strong governance; and it has a meticulous business plan. LendingClub should strive to answer questions before they’re asked, and all financial statements and company reports must be exhaustive. Voluntarily engaging extra means of outside investigation would add credibility. This is a time for more detailed disclosure, and that can’t stop, as it’s the price of earning confidence.”
Read more of D’Angelo’s comments via the full article
in The Wall Street Journal.
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