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LendingClub shares tumble on credit score tightening plan

The lender rolled out a new risk model to try to capture longer-term borrower behaviour

LendingClub shares tumble on credit score tightening plan

LendingClub on Tuesday reported earnings in line with Wall Street expectations, but a plan to restrict lending to all but the most creditworthy borrowers send the stock down 16% in Wednesday morning trading, MarketWatch reports.

“We estimate this cuts originations - and revenue - roughly 5%, and adjust our estimates accordingly,” wrote Susquehanna International Group analysts, who have a positive rating and a $9 price target on the company.

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Jamie Dimon Says Private Credit Is Dangerous—and He Wants JPMorgan to Get In on ItExternal link

Jamie Dimon Says Private Credit Is Dangerous—and He Wants JPMorgan to Get In on It