Are the loans people make in LC going down as well or just the company?
I guess here’s what I am wondering (and it may be wrong).
LC has entered a spiral where poor control is burning lenders causing lender participation to drop (which should also raise rates) as volumes are falling on lack of borrowers. Whether or not this business model will work going forward is in question, evidenced by shares at 20% of their IPO value (and 10% of peak).
So, if it were to enter a liquidation, I’d assume 1) budgets and in turn controls may drop on this odd pool of loans and 2) borrowers (particularly fringe borrowers) may decide to stop paying to see if they can fall through the cracks on a firm winding down.
LC for lacks the scale and institutionalism of Visa in your example, so I do wonder how this would be handled.
Yeah, but LC already has an issue with people just walking away from loans, I can only imagine it would get worse under bankruptcy.
Just LC is going down, although the defaults from what I read are rising as well.
no chance, rawraw would come after them