LendingClub Appoints Former BlackRock Executive as Chief Capital Officer
18 July 2016 - 10:50PM
Dow Jones News
LendingClub said Monday that it had appointed a BlackRock Inc.
veteran to be its chief capital officer, a position designed to
manage the online lender's relationships with its investor group as
it works to rebuild their confidence after its chief executive was
ousted and purchases of LendingClub loans slowed.
The company said Patrick Dunne, who most recently led
BlackRock's San Francisco office, would be responsible for managing
relations with individual investors, banks, endowments and
strategic partnerships with retail distributors.
Year-to-date the company's share price has fallen 59% as it
struggled with the departure of its founder, slowing loan purchases
and negative returns to investors.
In early May, the online lender's board of directors asked for
former Chief Executive Renaud Laplanche's resignation after it
learned from an internal review that he failed to report errors
related to a sale of loans as well as a personal investment in an
outside investment fund and that he had inflated monthly loan
volumes in 2009 by giving loans to family members.
LendingClub said in June that it expects second-quarter loan
volume to be around one-third less than the $2.75 billion it
reported in the first three months of 2016. The San Francisco
company said shareholders and analysts shouldn't expect revenue and
profit growth to resume until the first half of 2017 as it looks to
spend more on incentives for investment funds to ramp up their loan
purchases as well as for employees to stay at the company.
Earlier this month, The Wall Street Journal reported that a fund
managed by LendingClub that invests in the company's online
consumer loans expected to report its first-ever negative
month.
In January, reports surfaced that Mr. Dunne was leaving
BlackRock due to an internal reorganization. He has 25 years of
investment experience, including roles at BlackRock, iShares and
Barclays Global Investors. He previously was head of iShares Global
Markets and Investments and was global chief operating officer for
iShares.
LendingClub shares rose 4.7% in premarket trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
July 18, 2016 08:35 ET (12:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
BlackRock (NYSE:BLK)
Historical Stock Chart
From Apr 2024 to May 2024
BlackRock (NYSE:BLK)
Historical Stock Chart
From May 2023 to May 2024