Finance
TD Risks ‘Lost Decade’ in US Money-Laundering Scandal, Jefferies Says
- Canadian bank’s shares fell 5.8% Friday, most since 2020
- Analysts argue that it will take time for valuation to rebound
The Toronto-Dominion bank headquarters in Toronto, Ontario.
Photographer: Chloe Ellingson/BloombergThis article is for subscribers only.
A veteran Canadian bank analyst says Toronto-Dominion Bank’s role in an alleged money-laundering scheme has made the “worst-case scenario” more likely — a huge fine for the lender and years of restrictions on its US growth.
The US Department of Justice is investigating the bank over its ties to a $653 million drug money-laundering case in New York and New Jersey, a person familiar with the matter told Bloomberg last week. The probe is focused on how Chinese crime groups used Toronto-Dominion and other banks to hide money from US fentanyl sales, the Wall Street Journal reported on May 2.