Evaluating only LendingClub (2016 crisis)’s profile at its peak — without knowing the outcome — the model ranked Founder chaos as the #1 likely cause. That’s exactly how it died.
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Documented cause
LendingClub CEO Renaud Laplanche resigned in May 2016 after an internal review found that $22M in loans had been sold to an investor with falsified application dates, and that Laplanche had failed to disclose a personal conflict of interest. The stock fell 50% in a single day. LendingClub survived but spent years rebuilding institutional trust.
Lesson
“For marketplace lenders, loan data integrity is the product. Falsifying origination dates is not a compliance technicality — it invalidates every institutional investor's credit risk model and destroys the trust that marketplace lending is built on.”
FAQ
Why did LendingClub CEO resign?
LendingClub CEO Renaud Laplanche resigned in May 2016 after an internal review found $22M in loans were sold with falsified application dates and he had undisclosed conflicts of interest. The stock fell 50% in a single day.