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This bad for anyone still long Lending Tree, as Government tends to have a heavy and indiscriminating hand. The Federal Trade Commission recently joined Treasury, the FDIC and Elizabeth Warren’s Consumer Financial Protection Bureau in trying to better understand whether consumers might be unwittingly opening themselves up to predatory lending practices. Four governmental agencies are now examining the business of online lending, and their prying eyes are sending tremors through the industry. If a tree falls in the forest, and no one’s there, does it still make a sound? Answer: Yes, just ask the regulators. All ten analysts rate shares a Buy, but no tree can withstand gale force winds indefinitely. Only Lending Tree ( TREE) still stands… barely. ( LC) fired its CEO for selling $22M of loans which failed to meet investors’ criteria, and underwriters at Goldman Sachs and Jefferies suspended pending loan securitizations. ( ONDK) lost double the estimate for Q1, LendingClub Corp. During the first two weeks of May, On Deck Financial, Inc. There is only one problem: The concept is failing in spectacular fashion. Marketplace lenders were supposed to transform borrowing the way Priceline ( PCLN) transformed travel, uniting buyers and sellers on a common platform so they could agree on a price and consummate a deal. Lending Tree (TREE) will fall to the forest floor like its competitors.Bloated cost structures undermine the legitimacy of top line growth.Four governmental regulatory bodies now examining marketplace loan practices.Online lenders cut in half since April will NOT recover.Last Tree Standing One Lender Still Faces the Axe
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