Billionaire short-seller Jim Chanos says he was betting against Lending Club before its capitulation this week.
“We had problems with the model itself,” the Kynikos Associates founder told Bloomberg TV’s Erik Schatzker.
The online lender’s stock has dropped 46% since CEO Renaud Laplance on Monday announced he was stepping down, following an internal review into a $22 million loan sale.
That was followed by the news that Goldman Sachs and Jefferies would stop doing deals with the fintech company. Those banks had been buying Lending Club’s loans and packaging and selling them as bonds to investors.
Chanos did not comment on whether or not he’d closed out the short since the stock blew up.
Chanos last week announced he was short the South Africa-based telecoms company MTN Group. He also confirmed his short positions in Tesla, Valeant, and Alibaba.