Questions will inevitably be asked of the whole sector.
Renaud Laplanche, CEO of Lending Club, the flagship US peer-to-peer lender, resigned suddenly this morning, amid reports that staff had falsified the company records to sell a parcel of loans to an institutional investor. Only one investor was affected, and Funding Club subsequently corrected the transaction by buying the loans back at par.
Theree other executives have also resigned. It isn't clear at time of writing whether Laplanche was personally involved, or he resigned because the wrongdoing took place 'on his watch.'