The Toronto-Dominion Bank announced on Monday that it would leave the participation of 10.1% in the financial services company Charles SchwabAs part of a strategic examination undertaken by the Canadian lender following a historic fine of American regulators.
TD holds 184.7 million ordinary Schwab shares, worth around $ 15.4 billion depending on its latest fence price. Charles Schwab’s shares fell the last decrease of 3.2% of negotiation prior to the market.
The second largest bank in Canada had warned of a 2025 challenge in December and suspended its medium-term profile forecasts because it is working in its anti-flowering repair program following an American regulatory survey. TD also said he would have a strategic examination.
In October, TD became the largest bank in the history of the United States to plead guilty of having violated a federal law aimed at preventing money laundering, and agreed to pay more than $ 3 billion in penalties To resolve the accusations.
The advocacy agreement, which includes a rare taxation of an asset ceiling and other commercial limitations, is the result of multiple US government surveys on what the authorities have described as omnipresent problems.
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“As part of our strategic examination, we estimated the capital allowance and made the decision to leave our Schwab investment,” said the newly appointed CEO of TD, Raymond Chun.
Chun became CEO on February 1, replacing the long -standing chief Bharat Masrani more than two months earlier than initially planned.
TD said it was planning to use $ 8 billion Canadian dollars ($ 5.58 billion) of action buy -back product and invest in its activities to increase performance and accelerate organic growth.
The bank has added that it will continue to carefully manage capital and strengthen its infrastructure.
TD is currently the largest shareholder in Schwab, a participation that it has acquired in the context of the purchase of $ 26 billion by the financial service company of TD Ameritrade in 2020.
SCHWAB, in a separate press release, said it agreed to buy stocks worth $ 1.5 billion in a private transaction.