Finance
TD Risks an Earnings Hit From US Laundering Probe, Analysts Say
- National Bank sees $730 million earnings pain, $2 billion fine
- Shares slip after report of ties to drug-money-laundering case
With new allegations emerging surrounding US anti-money-laundering investigations into Toronto-Dominion Bank, the lender could face a much higher fine than previously expected as well as a significant hit to its long-term financial performance, according to analysts at National Bank of Canada.
The US Department of Justice is investigating the Canadian bank over its ties to a $653 million drug-money-laundering case in New York and New Jersey, according to a person familiar with the matter. That’s on top of another case in which one of the bank’s New Jersey branch employees was charged with accepting bribes to facilitate the laundering of drug money.