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Shares of TD Bank are falling in premarket trading on a report that the Canadian bank is set to pay around $3 billion in penalties and accept limits on its U.S. growth.
According to The Wall Street Journal, the Office of the Comptroller of the Currency is expected to impose the fines and place a limit on how much the bank's U.S. retail operations can grow following charges it failed to over charges it failed to curb money laundering by drug cartels.
Last month, TD said that CEO Bharat Masrani would be stepping down in April 2025 and announced a succession plan.
Shares of TD Bank (TD) are falling in premarket trading on a report that the Canadian bank is set to pay around $3 billion in penalties and accept limits on its U.S. growth over charges it failed to curb money laundering by drug cartels.
According to The Wall Street Journal, the Office of the Comptroller of the Currency is expected to place a limit on how much the bank's U.S. retail operations can grow.
In a previous report, the Journal said TD's U.S. unit planned to plead guilty to criminal charges to resolve a U.S. Department of Justice (DOJ) probe into money laundering allegations tied to a Chinese crime operation.
TD Had Set Aside Billions of Dollars in Anticipation of the Fines
In August, TD Bank Chief Executive Officer (CEO) Bharat Masrani said the bank was working with U.S. regulators and law enforcement to resolve the issues.
TD Bank posted an unexpected third-quarter loss that month as it set aside billions of dollars in anticipation of the fines over the probe into its anti-money-laundering (AML) practices.
The Canadian lender last month said that Masrani would be stepping down in April 2025 and announced a succession plan for the CEO.
Shares of TD Bank, which didn't immediately respond to an Investopedia request for comment, were down 4.5% in premarket trading Thursday. They had been 1.7% lower on the year through Wednesday's close.
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