LendingClub May Be Just the Tip of the Bad Loan Iceberg

The collapse of LendingClub shares after the ousting of its CEO could be a harbinger of bad things to come in the lending industry, especially in the auto loan arena.
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The collapse of LendingClub (LC) - Get Report shares after the ousting of its CEO is the harbinger of bad things to come in the lending industry, especially in the auto loan arena, said Brad Lamensdorf, portfolio manager for the Ranger Equity Bear ETF (HDGE) - Get Report . 'While the zero interest rate has helped the economy, it now appears to be prompting highly aggressive measures through the lending industry,' said Lamensdorf. Shares of LendingClub closed at an all-time low Thursday after multiple firms said they would investigate the peer-to-peer lender for violations of federal securities laws. The fall comes a day after CEO Renaud Laplanche was removed from his post following questionable related-party transactions.