Bank of America has agreed to acquire a $9 billion portfolio of residential mortgage loans from Toronto-Dominion Bank. This move comes after TD Bank announced plans to exit some loan portfolios and restructure its balance sheet due to regulatory penalties for money laundering violations.
Feb 7 - Bank of America , has agreed to buy a $9 billion portfolio of residential mortgage loans from Toronto-Dominion Bank , a source familiar with the matter said on Friday.The Canadian lender's CEO Raymond Chun had said at a banking conference in January that the bank would look at exiting some loan portfolios.
In October last year, TD said it would focus on restructuring its balance sheet in fiscal 2025 after it pleaded guilty to violating a U.S. law aimed at preventing money laundering and agreed to pay a combined $3 billion in penalties. The lender, which had invested in its growth in the U.S. retail market, now must narrow its efforts to comply with a rare asset cap imposed by regulators. Its U.S. business has more than 1,100 branches and nearly 10 million customers, making it the 10th largest bank in the country.
Reporting by Saeed Azhar in New York, Jaiveer Singh Shekhawat in Bengaluru and Nivedita Balu in Toronto; Editing by Shounak Dasgupta The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc.
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