TD’s Transaction Practices Drew Regulator Scrutiny on Nixed Deal

Toronto-Dominion Bank’s planned $13.4 billion purchase of First Horizon Corp. was held up as US regulators scrutinized the Toronto lender’s handling of suspicious customer transactions — a delay which contributed to the banks’ decision to abandon the deal, according to a person familiar with the matter.

The regulators’ concerns were related to anti-money laundering practices, according to the person, who asked not to be identified discussing private information. The reluctance by the Office of the Comptroller of the Currency and the Federal Reserve to sign off on those practices ended up being the biggest obstacle, the Wall Street Journal reported earlier, citing people it didn’t identify.