TD’s Outlook Changed to Negative by Moody’s on Cost of US Probe

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The rising cost of a US investigation into Toronto-Dominion Bank’s money-laundering controls is casting a darkening shadow over one of the strongest bank credit ratings in the world, with Moody’s Ratings following rivals in placing a negative outlook on the firm.

TD’s announcement last week that it’s stockpiling an additional $2.6 billionBloomberg Terminal to resolve inquiries raises concerns about the severity of the case and its ultimate toll, Moody’s said in statementBloomberg Terminal late Tuesday.