By Wednesday, LendingClub had touched an all-time intraday low of $3.95, for a market cap of $1.5 billion. That is a world away from the $10.3 billion peak reached just after its IPO. For comparison, LendingClub's current valuation is roughly 14 times estimated 2017 earnings vs. Wells Fargo's is 11.2 times.
It's been a busy week for LendingClub's seven directors. On Monday, they scrapped future guidance and ousted founder and CEO Renaud Laplanche after discovering flaws in the company's lending practices and issues with Laplanche's lack of disclosure about a personal investment. Since then, the likes of Jefferies Group and Goldman Sachs Group have hit pause on buying LendingClub loans, a move that puts into question the lending platform's ability to originate and sell loans (its main source of revenue) and caused a further decline in its shares. By Wednesday, LendingClub had touched an all-time intraday low of $3.95, for a market cap of $1.5 billion. That represents a decline of more than 40 percent since this time last week and is a world away from the $10.3 billion peak reached shortly after the company's December 2014 initial public offering
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