Today LendingClub stopped allowing new lenders to register and fund loans on their site, and entered a “quiet period” in which they will not issue public statements or talk to the press. LendingClub posted this official statement on their web site:

 

Lending Club has started a process to register, with the appropriate securities authorities, promissory notes that may be offered and sold to lenders through our site in the future. Until we complete the registration process, we will not accept new lender registrations or allow new commitments from existing lenders. We will continue to service all previously funded loans during this period, and lenders will be able to access their accounts, monitor their portfolios, and withdraw available funds without changes.

The borrowing side of our site will remain generally unaffected by this registration process; borrowers can continue to apply for loans and new loans posted after April 7, 2008, will be funded and held only by Lending Club.

Until the registration process is completed, the company will undergo a quiet period and will not be able to respond to press and other inquiries about Lending Club or the registration process during that time.

Borrowers continue to post loan requests, but without lenders, it is hard to imagine that they would be fulfilled. It looks like some loans are being funded by LendingClub themselves, but this doesn’t seem like a sustainable solution.

Although no public complaint has been issued, It is suspected that LendingClub has been asked to shut down by the US Securities and Exchange Commission, and that LendingClub complied for fear of receiving a formal cease and desist, which would hurt its reputation and prevent it from raising further capital.

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