CashNews.co
TD Bank has taken a provision of $2.6bn in its third-quarter earnings as it prepares for monetary penalties related to a US investigation into its anti-money laundering programme, an expected loss that it plans to offset with a sale of more than 40mn shares of broker Charles Schwab.
The Canadian lender had already set aside $450mn in April, after US regulators, including the Department of Justice, opened an investigation into deficiencies in its US division’s anti-money laundering programme. TD on Wednesday said it anticipated a “global resolution” to the matter by the end of 2024.
TD said the Schwab share sale would cut its ownership in the company from 12.3 per cent to 10.1 per cent.
The Toronto-based lender, 10th largest in the US by assets, has faced multiple hurdles in recent years, including a failed merger with Memphis-based First Horizon Bank.