TD risks earnings hit from US probe

Facing scrutiny: TD officials at the bank’s AGM in April. Shareholders are clamouring for clarity on potential penalties the lender faces. — Bloomberg

Toronto: With new allegations emerging surrounding US anti-money-laundering investigations into Toronto-Dominion Bank (TD), 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 US$653mil drug-money-laundering case in New York and New Jersey, according to a person familiar with the matter.