Topic: How To Invest

The Successful Investor Hotline – Friday, October 11, 2024

Article Excerpt

TORONTO-DOMINION BANK, $78.48, Toronto symbol TD, remains a buy for patient, income-seeking investors. The stock fell 9% this week after the bank agreed to pay a fine of $3.09 billion U.S. due to lapses in its anti-money laundering processes at its U.S. retail banking operations. TD has already set aside $3.05 billion U.S. to cover the fine. The bank has since beefed up the monitoring and compliance procedures at its U.S. and Canadian operations, which should help prevent additional violations. The settlement also unexpectedly imposed an asset cap on TD’s U.S. retail banking operations. As a result, those assets cannot exceed $434 billion, which was their value on September 30, 2024. The cap will prevent TD from opening new branches, making acquisitions or expanding its loan portfolios without the permission of regulators. Investors should note that the cap does not apply to the bank’s other U.S. businesses, such as securities trading and corporate financing. The cap will remain in place until the U.S. Office…