Publications
Publications
  • February 2010 (Revised December 2010)
  • Case
  • HBS Case Collection

Lending Club

By: Peter Tufano
  • Format:Print
  • | Language:English
  • | Pages:29
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Abstract

A new entrant in the nascent online peer lending space, Lending Club must decide whether or not to register with the SEC. Lending Club provided a platform through which individual borrowers could receive loans funded by individuals who chose to invest in them. The management team wanted to grow the business and also hoped to establish a secondary market to give lender members liquidity. The SEC had raised questions about whether or not the promissory notes issued to lender members were in fact securities, but there were legal arguments on both sides. While the legal situation was unclear, Lending Club considered the benefits of applying to the SEC, but had to decide whether it would be worth the significant investment of time and money, both up front and going forward.

Keywords

Financial Instruments; Price; Personal Finance; Financing and Loans; Financial Services Industry

Citation

Tufano, Peter, Howell Jackson, and Andrea Ryan. "Lending Club." Harvard Business School Case 210-052, February 2010. (Revised December 2010.)

About The Author

Peter Tufano

Finance
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