Commercial lending

Following the scandal-tinged departure of CEO Renaud Laplanche, the company is contemplating drastic steps to restore the confidence of loan buyers. Scenarios that would have been far-fetched a short time ago — such as diluting shareholders and funding loans off its own balance sheet — are now under consideration.

Prosper Marketplace Inc. has met with investors including Fortress Investment Group about potential capital injections, according to a person with knowledge of the matter.

LendingClub Corp., which plunged 51 percent last week after the surprise departure of its leader and disclosure of faulty internal controls, said the scandal is prompting investors to suspend debt purchases and spurring government probes.

Too many fintech companies are selling superficial products. Entrepreneurs need to start solving hard problems and offering real value.

BancAlliance, a network of community banks that has been snapping up loans from LendingClub, is weighing whether to suspend purchases on the online platform after the company said it's overhauling internal controls.

American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and our social media platforms.

The disruption of the taxi industry caused by Uber and Lyft continues to hurt banks that finance taxi medallions. Anticipating more chargeoffs to come, these banks are aggressively boosting their reserves, restructuring delinquent loans and reselling or leasing out foreclosed medallions.

Digital upstarts that seemed on top of the world a few months ago have suffered a series of setbacks of late that raise questions about their long-term survival. Here's a look at the developments that have brought some once-high-flying online lenders back to earth.

Say what you will about these companies' longevity, were it not for the likes of Lending Club you wouldn't see banks like Wells Fargo introducing expedited loan products.

First Connecticut Bancorp in Farmington has committed to making $5 million in small-business loans over the next year.