This move is part of a deal the bank made last year after failing to prevent money laundering activities. The portfolio includes jumbo mortgages from U.S. homeowners with strong credit, and bids for these loans are expected to come in by next week, according to reports from BNN Bloomberg.
A TD spokesperson declined to comment when contacted by Canadian Mortgage Trends but confirmed that the details in the BNN Bloomberg story are accurate.
Back in October 2024, TD Bank agreed to pay over $3 billion in fines and accept growth restrictions in the U.S. as part of a settlement over charges of poor money laundering controls.
The U.S. regulator overseeing the bank, the Office of the Comptroller of the Currency (OCC), also set an asset cap, limiting the bank’s ability to expand its retail business beyond its current asset levels.
To stay in line with this new cap and keep its operations flexible, TD Bank is restructuring its holdings.
This includes selling up to $50 billion in lower-yielding investment securities, and reinvesting the proceeds to optimize its balance sheet and meet the regulatory requirements,” Bloomberg reported.
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Last modified: January 22, 2025