Santander is also walking the tight rope with regulators. I think Santander getting out is more of a reflection that regulators do not want banks lending money. If you follow the trends, all types of loans are being handed off to alternative lenders. Banks will no longer be in the lending business. They will eventually only provide deposits, payments, and transactional services..
Sure go a head and buy a 10 year treasury and earn 2% per year if you hold it for 10 years. LC's loans have a duration of about 3-5 years and earn investors between 6-8%. Stick to their investment program and you will do great.
Even Compass Point who has a sell rating and a 9 dollar target admits that the numbers LC is posting do not substantiate their argument. Its all conjecture and in the mean time, LC continues to get stronger and stronger.