If one were forced to come up with a single-word description for the week that the remaining executive team at Lending Club has just lived through, we imagine “brutal” would be the winner.
As of a week ago, the “highlights” of the Lending Club’s Icarus narrative were well-known to anyone with a functioning Internet connection: An external audit of Lending Club turned up some seriously disturbing irregularities and compliance problems that ended with the founding CEO (and several other members of the executive team) either resigning or being terminated by Lending Club’s board.
Unfortunately, for Lending Club, the warm sunshine of transparency did a number on the wax holding its wings together. And the five days following the big reveal were marked by the sight of Lending Club’s share price crashing to the ground in a most spectacular fashion.
And that, as it turns out, was just the opening act.