It&#x27;s a good business model for Lending Club, but maybe not for investors.<p>LC is responsible for grading the loans and calculating the risk of each borrower. However, it does not take any of the risk of the loans being traded on its platform. So there&#x27;s a big concern that LC may not be very scrupulous about the borrowers it accepts.<p>It&#x27;s a similar situation to the last financial crisis where companies were happily accepting risky mortgage applications, doing little or no checking, and then selling them on for a quick profit.