LendingClub Jumps 11%, Company Said To Be In Talks With Citigroup

Shares of LendingClub Corp LC were trading higher by more than 11 percent Friday morning after the Wall Street Journal reported that the company is in talks with Citigroup Inc C.

The Wall Street Journal, citing "people familiar with the discussions," noted that the talks involve the possibility of Citigroup buying or providing financing for future loans. A potential partnership or collaboration could reassure LendingClub's investors following the abrupt resignation of its CEO Renaud Laplanche.

Related Link: LendingClub CEO Is Out, Shares Tumble 25%

The two companies already have a separate agreement established in 2015 in which the bank would buy loans from LendingClub to help it meet community lending requirements.

A spokeswoman for Citigroup did not confirm the Wall Street Journal's details of the conversations.

However, the spokeswoman did state, "We are productively engaged with LendingClub on a number of fronts."