At the moment, TD holds 184.7 million shares in Charles Schwab, out of which it will sell 165.4 million shares at USD 79.25 apiece for about USD 13.1 billion, at a discount of nearly 5% from Schwab's closing price.
According to Reuters, Schwab is set to purchase the remaining shares from TD for USD 1.5 billion.
After the review is completed and revealed, it will be seen whether this initiative will set TD up for a different strategy in US wealth management or not.
Back in October 2024, TD Bank agreed to pay USD 3 billion in money laundering settlement, pleading guilty to criminal charges that are related to money laundering in the region of the US. The line followed TD Bank’s failure to appropriately monitor money laundering by drug cartels and other criminals, a process which allowed them to transfer hundreds of millions of dollars in unlawful funds. In addition, the bank did not enforce sufficient defenses against money laundering (ML) for nearly 10 years and did not act when staff members flagged cases of abuse, including a customer making daily deposits of USD 1 million in cash.
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