NEW YORK (TheStreet) -- Shares of LendingClub(LC) - Get Report are slumping by 2.39% to $3.67 on heavy trading volume early Friday afternoon, as Banc Alliance, a network of community banks, is considering whether to halt purchases on the online platform after the company said it is overhauling internal controls, Bloomberg reports.
"We haven't yet made a decision on what should happen," CEO of AlliancePartners Brian Graham told Bloomberg, "As a regulated bank, you really care about compliance and controls."
AlliancePartners is an investment adviser assisting the community banks with purchasing online consumer debts that LendingClub arranges.
On Monday, San Francisco-based LendingClub said its founder and CEO Renaud Laplanche resigned after an internal review of a failed loan sale and after he revealed a stake in an external fund, Bloomberg noted.
About 17.79 million of the company's shares changed hands so far today compared to its average volume of 15.52 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D- on the stock.
This is driven by a number of negative factors, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins.
Recently, 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 articles's author.
You can view the full analysis from the report here: LC