TD Bank Sets Aside $2.6 Billion for US Money Laundering Probe
TD Bank took a $2.6 billion writedown in third-quarter earnings as it braces for fines related to a U.S. investigation into its anti-money laundering program, an expected loss it plans to offset by selling more than 40 million shares of brokerage firm Charles Schwab.
The Canadian lender set aside $450 million in April after U.S. regulators, including the Justice Department, opened an investigation into shortcomings in its U.S. branch’s anti-money laundering program. TD said Wednesday it expects to have a “global resolution” to the matter by the end of 2024.
TD said the sale of Schwab shares would cut its stake in the company from 12.3% to 10.1%.
The Toronto-based lender, the 10th largest in the United States by assets, has faced a number of hurdles in recent years, including failed merger with Memphis-based First Horizon Bank.
