by Francine McKenna
The U.S. Treasury Department on Tuesday called for more oversight over online lending, one day after the biggest and most successful of the online lenders, LendingClub Corp, pushed out its CEO for alleged self-dealing and problems with its practices.
The Treasury’s report is an overview of what the agency heard when it asked the industry’s players to talk about the growing, and generally unregulated, industry. One key conclusion: Treasury thinks the online industry needs more effective oversight.
LendingClub on Monday disclosed that CEO Renaud Laplanche and three other executives were leaving the company, after a review found they sold an investor $22 million in “near prime” loans, violating the investor’s explicit instructions.