10th May 2016 08:15
LONDON (Alliance News) - VPC Specialty Lending Investments PLC on Tuesday said it does not hold a position in LendingClub Corp and has never had any exposure to loans originated by the US-based peer-to-peer lender.
VPC is an investment trust which invests in the alternative lending market through specialty platforms.
San Francisco-based LendingClub on Monday announced Chief Executive Officer Renaud Laplanche had resigned after an internal review. The company had conducted a review of sales of USD22 million in near-prime loans to a single investor, in contravention of the investor's express instructions as to a non-credit and non-pricing element, LendingClub said in a statement Monday.
The announcement send LendingClub shares plunging 34% in New York on Monday.
VPC's statement followed one issued late on Monday by P2P Global Investments PLC, the London-listed investment trust which invests in loans originated through online peer-to-peer platforms.
P2P said it does not participate in LendingClub's near-prime program. In addition, P2P said its "purchase of LendingClub loans are restricted to the 'prime' program offered by LendingClub." Moreover, P2P said it has "no exposure" to LendingClub equity or equity-linked securities.
VPC shares were down 1.6% to 90.50 pence Tuesday. P2P shares were down 0.9% at 931.50p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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