Peer to Peer Lender - Lending Club Hires Former Morgan Stanley Exec John Mack

Former Morgan Stanley Banker to Bypass Banks with Peer to Peer Lending
Associated Press
April 12, 2012, 11:50AM
Lending Club names John Mack to board

By SARAH SKIDMORE

Lending Club has appointed former Morgan Stanley CEO John Mack to its board, the peer-to-peer lender said Thursday.

Mack headed Morgan Stanley from 2005 to 2010 and served as its chairman from 2005 to 2011. When Mack retired as chairman, he handed over the position to CEO James Gorman.

Mack is largely credited with saving the investment bank during the financial crisis by negotiating a $9 billion investment from a Japanese bank. But Mack was also criticized for the firm's poor performance during and after the crisis.

Lending Club, based in San Francisco, was founded in 2006 and has grown quickly since then. It aims to cut the costs of traditional lending by connecting consumers who want loans, typically at lower rates than banks, with investors who are willing to lend. It has also launched two funds in the past year under its subsidiary LC Advisers.

The appointment of such a notable financial leader lends some clout to the growing company.

Lending Club said Mack will combine his position on its board with his existing roles as Chairman Emeritus of Morgan Stanley and Senior Adviser to investment firm Kohlberg Kravis Roberts & Co.

"We are thrilled to welcome John to our board," Lending Club CEO Renaud Laplanche said in a statement. "John has an unparalleled track record building financial firms; his inspirational leadership and wealth of experience will help propel Lending Club to the next phase of our evolution."

The company said its loan originations have exceeded $580 million and it is adding more than $40 million a month in new loans.

"Lending Club has created an innovative platform that provides investors with low-cost access to high-quality consumer credit assets, and at the same time makes credit more affordable to consumers," Mack said in a statement. "This is a winning combination and I am truly excited to serve on the company's board."

Mack will be the fifth board member. He joins Lending Club CEO Laplanche and investors Jeff Crowe of Norwest Venture Partners, Daniel Ciporin of Canaan Partners and Rebecca Lynn of Morgenthaler Ventures on the company's board of directors.