NEW YORK (TheStreet) -- LendingClub(LC) - Get Report stock is rising 10.83% to $3.99 in mid-afternoon trading on Wednesday despite an investigation into its business practices by New York's top financial regulator, sources told the Wall Street Journal.
The New York Department of Financial Services has reportedly sent the online lender a subpoena requesting information on interest rates, fees and the duration and volume of loans made to New Yorkers.
The probe is the third investigation that LendingClub has faced since CEO Renaud Laplanche was ousted earlier this month, but the investigation is unrelated to Laplanche's resignation, the Journal notes.
LendingClub disclosed on Monday that received a grand jury subpoena issued by the Justice Department shortly after announcing Laplache's departure. LendingClub also has contacted the SEC.
Laplanche resigned last week after the company's board discovered issues with $22 million in loans sold to Jefferies as well as Laplanche's failure to disclose a personal investment in one of LendingClub's clients.
Shares have fallen nearly 50% since then.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D-.
LendingClub's weaknesses include its generally disappointing historical performance in the stock itself and poor profit margins.
You can view the full analysis from the report here: LC
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.