A TD Bank branch in Toronto’s Financial District, Sept. 24. On Thursday, TD pleaded guilty to felony crimes in the U.S. and agreed to pay US$3.09-billion in penalties stemming from major, widespread failures in its anti-money-laundering programs.is facing years of constrained growth and pressure on profits, a worst-case scenario that will force the bank to shift its strategy to try to keep up with rivals after regulators put a straitjacket on key parts of TD’s U.S. business.
“This is a difficult chapter for TD,” said Raymond Chun, who will take over as chief executive officer in April when current CEO Bharat Masrani retires, but “TD has the scale and resilience to deliver.”Starting Wednesday evening, senior TD leaders have held calls and meetings with staff that continued Thursday, as well as an all-staff town hall in the U.S. on Friday. They sought to strike a balance between owning up to the bank’s failures while bolstering morale.
At the same time, TD has already begun to pivot its focus toward corporate clients, the source said. Mr. Masrani, Mr. Chun and other TD leaders have told investment bankers at TD Securities and corporate lenders that the bank plans to put more capital behind their businesses and expects them to win additional clients and do more work for existing business customers.
The U.S. Department of Justice disclosed that TD has withheld or clawed back about US$2-million in compensation from executives, including a $1-million cut to Mr. Masrani’s bonus pay last year, and US$201,000 from Leo Salom, the head of TD’s U.S. business. Justice officials said TD expects to claw back a further US$5.5-million in pay.have already cost the bank dearly. Its stock has lost the premium it used to enjoy and now trades at a 12-per-cent discount to the average for its peers.
Even so, the asset cap on the U.S. retail business “will restrain TD’s growth efforts in the U.S. for a long time to come,” Mr. Mihelic said. “This is a significant reduction in future potential earnings power.”
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »