Weird times makes for weird finance stories, and today was no different.
First up is SoftBank, which is the procylical, risk-increasing gift that keeps on giving. Apparently CEO Son pledged 80% of his SoftBank shares to banks as collateral during the recent sell-off. Collateral against … what, you wonder? Against personal loans, of course. This company is a profligate producer of risk. Remarkable.
And then there’s LendingClub, which, as it turns out, is struggling with what used to be lousy credits becoming … lousier credits. This is no surprise, but why not simply re-reate credits, rather than dropping D credits and making Cs the new Ds, as it were? You can still invest in Ds, they’re now just called C, more or less. This is delightfully Spinal Tap-is, of course, so kudos them.