lendingclub's founder, chairman and ceo has resigned. the problem was an internal review. they found that the company sold an investor $22 million in loans that did not meet the investor's conditions though exactly how isn't clear. on top of that it was also discovered changes were made in the afternoon indication dates of $3 million of these loans and finally there was evidence of the conflict of interest. now the investor was reportedly jeffries which declined comment. in a statement lendingclub saying while the financial impact of this $22 million in loan sales was minor, a violation of the company's business practices along with lack of a full disclosure during a review was up acceptable to the board. right now it is not clear what role le plaun. exactly played, but dow jones

so what impact is this for lendingclub?utive vice president and former board member john donovan. john, it is great to see you and i'd love to get your insight on the company knowing it as well as you do, and it seems s a une situation to be in >> yes, kayla. great to be here. how does this happen? well, it is interesting to look, and i don't know more than what i am reading in the press, but certainly, a company built on tra transparency, and built on a level of the high set of objectives and a strong board, and what happens is that in the audit, it looks like they found the information and they are held accountable for that high set of standards. >> what is the responsibility of a board of directors or the executive team more broadly to have the knowledge of the outside investments of the executives in the investments? >> well, based on the information that we are seeing, this is something that happened in march, and so from the standpoint of the reaction, and note, i still own stock, and so i am long lendingclub, but wit

it's not just an issue with lendingclub, but throughout the whole business.tioning, is the credit cycle turning? is now a good time to invest in these loans? carol: is the model not perfect? reporter: the "new york times" had an interesting column today talking about how lendingclub has left a lot of questions. we saw a lot of retailers fall apart. to me, it's like some of these retailers have had broken models for quite some time, and it's a reminder that some of them are not doing that well. reporter: absolutely. the chart go showed pretty much howed pretty much tells the story. people want to spend, just not at boring department stores. you have the strong retail sales today, which is waiting on the markets because people are viewing it, being more hawkish. the comments from the fed speakers this week were probably not as dovish as people hoped for. at the same time, yes, consumers are spending more, just nordstrom, macy's, and kohl's were disappointing. carol: and volatility, we have seen a market swings. reporter: yeah, today, almost a 200 point move in

. >> and shares of lendingclub are crumb bling. we'll have more on that coming up. you're watching cnbc, first in business worldwide. that's a lot of dishes& no problem. i'll use a lot of detergent. dish issues? get cascade platinum. one pac cleans tough food better than 6 pacs of the bargain brand combined. cascade. man 1: i came as fast as i man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we miss it? man 2: we caught it, just not in time. man 1: who? how? man 2: not sure, probably off-shore, foreign, pros. man 1: what did they get? man 2: what didn't they get. man 1: i need to call mike... man 2: don't use your phone. it's not just security, it's defense. bae systems. >>> welcome back. a couple of movers to tell you about. teva pharmaceuticals up on an earnings beat. teva reiterated it's on track to complete its $4$45 billion acquisition and separately allergan and richter announced positive results. meantime the retail invest

one that is definitely on the move, lendingclub. resigned following an internal review. that's next. ♪ jonathan: this is bloomberg . i'm jonathan ferro. futures rollover as crude tumbles. futures negative. switch of the board. the open about nine minutes away. wti down by 1.23%. market it was a much stronger dollar store. -- story. yieldstures in the red negative. treasuries positive at 1.76%. amanda: lendingclub shares sliding in the premarket even worse than they are at this moment. they have been even further down. we still have a 22% decline. the company's founder and ceo resigning after an internal you -- internal review. we have seth merrin, ceo of liquidnet. how big a shock was this jonathan? everything happened pretty fast. they only started this review a couple of weeks ago. in 2007.ub was founded he took it public and it had a huge rise. they have had a whole bunch of other problems. this was completely out of nowhere. amanda: what does it say about the space? the valuations of lenders like this really have come off. >

has issued a grand jury subpoena for lendingclub, and it is the subject of at least the inquiry from the s.e.c., and that is going to represent at least what it looks like here, the first time a state regulatory body has put the attention on the shares of lendingclub. back over to you guys. >> thank you, dom. pete, at that point and you were long on the options, but you are gone? >> yes, and this is the beautiful thing about the options, scott, it was trading at $4 when we saw the activity, and they were trading about 45 cents on june, and 45,000 or something like that traded on the day we saw it. so we cited it and talked and it, and yesterday, the stocks down to $3.50 and the options was still there, and i said, it is a mess, and the doj is all over them, and soy exited yesterday. it is not to say that the thing can't take off and the options could perform, but i thought it was a good idea to get out of there and move on. >> so now over to apple ready for primetime, and toni sagunacchi is back with us, and now, how is this going the work for apple? >> well, the challenge for apple

and lendingclub, is the whole industry of peer-to-peer lending -- can people trust it?a big re-examination going on, not just of lending club but of the entire category. they came onto the scene several years ago with a lot of fanfare. the idea, if you think about it, makes a lot of sense. it's a way for you as an individual to make a loan to someone else. maybe some of you know, but maybe someone you don't know. maybe make a little extra money. and for the borrower, it is a way, an alternate form of lending. brad: but it has revolved into something much more traditional. tom: the banks and financial services companies have become a bigger and bigger source of this lending. exactly. it is not an alternative anymore in many instances. now, when you have an instance asking about the ceo's investment in a particular client or company, and questions about whether these loans were dated incorrectly, it raises questions. brad: can they recover? tom: it's very iffy. i'm leaning toward no. brad: tom giles, executive editor of bloomberg technology. thank you very much. that does

we will keep an eye on anymore data about lendingclub.will be right back. ♪ bloomberghis is markets. mark crumpton has more from our newsroom. mark: vice president biden will announce new rules on overtime that make it more than 4 million americans a pay raise. the rules say workers must be paid at least $47,000 before they can be considered as managers in eligible for overtime pay. that is twice as much as the current threshold. of voters want to see an independent candidate trump in clinton and the election. 65% say they are willing to support a candidate that isn't mrs. clinton or mr. trump. rests in the death of freddie gray. edward nero faces assault, charges.t and reckless closing arguments are expected to begin on thursday. opposition activists groups there there has been an air raid on a central syrian town. the airstrikes came a day after one ofar tack on rustan, the first areas to rise up against the bashir al-assad government. scarlet: silver leapfrogged over gold last month. fed, ae a dovish stabilizing chinese economy and u.s

lendingclub is a big winner. a report citigroup is in talks with buying loans. shares are up 10.5% but they're town 40%. just over the past month there are concerns about the industry. >>> all right. here's a question. does the u.s. really have more proven oil reserves than all of opec. that's what donald trump claimed in that energy speech he made yesterday in north dakota. is it true. eamon javers joins us now with an energy fact check. eamon? >> that's right. donald trump is not a candidate for president who's built his campaign around specific policy proposals, but yesterday in north dakota, he made this keynote energy speech which is why we're dialing into some of what he said. let's take a look at some of the claims here. first one that donald trump made yesterday, he said, america has 1.5 times as much oil as the combined proven resources of all opec countries. we looked that up on the eia website and according to the energy administration here, the u.s. has 39.9 billion barrels of reserve. saudi arabia alone has much more, 268 billion barrels. here's ano

lendingclub looking to get some of its liquidity back on the books. >> this is interesting in terms ofon with the company in trying to place the loans. >> it's interesting. citigroup was reported to have said, no, we don't want these particular loans originating. obviously we need to have that pipeline open and be able to finance themselves in that way. they might as well have one anchor, you know, kind of firm on the street to do that. >> that's true. i still wonder if that's enough for them. is it shored up enough. >> the problem is that what happens with all financial institutions is when your share price goes from 20 to 4 bucks you get these prices of confidence and that's the kiss of death. >> and if you're a market place lender and the market place moves against you. news out today the americans are carrying nearly a trillion dollars in credit card debt. it's close to the peak of just over a trillion. who does that mean for our economy? great to see you, chris, and do you read this as a good sign or a bad one? >> good to see you, too, kelly. for now it's a good sign. it's a sign

. >>> the ceo of online lending marketplace lendingclub is out. that's the gentleman there.enaud laplanche left the country after the board terminated -- you probably can't do that even though that great french skunk character. that's probably politically incorrect. i apologize. i don't know how to say it. >> i think it's renaud -- >> determined he violated company guidelines on business practices and disclosures. the company's president, scott sanborn will serve adds acting ceo. shares are down sharply and should disappoint out that paris is my favorite place and my entire place. we love the french people more than anything and the rich, creamy sauces. great wine. >> nothing to argue about. >> >> earnings and revenue the beef and poultry producer said it was pleased with the results and what typically is the most challenging quarter of the year. they have a big capitals president. >> they do. >> he used the words islamic extremism. and tribune publishing adopting a shareholder rights plan. this comes in response to an unsis litted acquisition proposal. this just out from va