New York's bank regulator is investigating LendingClub Corp. over loans issued to consumers and its relationships with financial institutions, according to a person familiar with the matter, saddling the embattled company with another probe after its chief executive was forced to resign earlier this month.
New York's Department of Financial Services issued a subpoena Tuesday to LendingClub seeking information about its business model as well as about agreements between the company and banks, including Salt Lake City-based WebBank, said the person, who asked not to be named because the investigation is confidential.
LendingClub, which has until June 21 to comply with the subpoena, must also turn over information on loans issued to New Yorkers between 2013 and 2015, including the loans' interest rates, fees and commissions, the person said.
LendingClub, based in San Francisco, said in a statement it intends to cooperate with the New York regulator.
Third Investigation
The DFS probe marks the third investigation into the peer-to-peer lender since the company announced on May 9 that founder Renaud Laplanche, who was chairman and chief executive officer, had resigned after internal reviews. Since then, the company disclosed that the Justice Department and the Securities and Exchange Commission have opened investigations into the matter. The DFS subpoena was reported earlier by the Wall Street Journal.
In announcing Laplanche's dismissal, LendingClub cited two incidents: The firm's staff altered application dates on loans worth $3 million before their sale, and Laplanche failed to disclose his interests in a fund that LendingClub was considering investing in.
LendingClub shares have fallen 65 percent since the beginning of the year.
