Analyst warns of potential higher fines, business restrictions for TD Bank

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 39 sec. here
  • 13 min. at publisher
  • 📊 Quality Score:
  • News: 57%
  • Publisher: 92%

Aud-Url News

Bank,United States,Deal

As evidence emerges about severity of money laundering at U.S. branches, TD’s provision of US$450-million seems ‘far too low’, analyst says

Historically, TD has traded at a 4-per-cent premium to its peer group, but its shares now have a 6-per-cent discount.anti-money laundering defences, a National Bank of Canada analyst is revising his worst-case scenario for the bank, predicting fines that could reach $2-billion and potential restrictions on the bank’s business that could hobble its earnings.

That would wipe out 7 per cent of TD’s projected 2024 earnings per share, based on consensus estimates by analysts. Historically, TD has traded at a 4-per-cent premium to its peer group, but its shares now have a 6-per-cent discount, Mr. Dechaine said. That has attracted interest from some investors who predict a rebound, but Mr. Dechaine cautioned them to “put greater weight on worst-case scenarios for the stock.”

TD has consistently said it cannot disclose any information on its discussions with regulators, but the bank is anticipating additional penalties, which could include fines as well as non-monetary penalties. The total amount of those fines are “unknown and not reliably estimable at this time,” TD said in a statement this week.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in UK
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank earnings reveal capital markets' 'resurgence': AnalystMorgan Stanley (MS) and Bank of America (BAC) have reported their first quarter earnings, beating expectations on the top and bottom lines. Bank of America...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Scotiabank analyst see ‘downside risks’ to bank stocks in a higher-for-longer interest rate backdropDaily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Source: globeandmail - 🏆 5. / 92 Read more »