Anti-money-laundering gaps that prompted U.S. probe cast doubt over likelihood TD CEO will hold onto his position, as well as prompting concern over the depth of TD’s talent bench
A TD sign on a post outside the TD Terrace building at Front St. West and Simcoe St. in Toronto’s Financial District, on Mar 4.is under escalating pressure to shake up its leadership in response to emerging details about its anti-money-laundering gaps that prompted a probe from U.S. regulatory and law-enforcement agencies.
“Repeated control failures call for a refresh of the management team,” Jefferies analyst John Aiken said in a note to clients. “While there has been some reshuffling of the deck in the U.S. operations, these failures are likely to call for more dramatic changes at the executive committee level. With departures around the table, TD’s bench strength has weakened, and we are concerned it could be facing an analogous succession conundrum as Scotia.
Among the remaining C-suite executives, many have been in their roles for a short time, prompting concern over the depth of TD’s talent bench. TD chose head of wealth Raymond Chun as Mr. Rhodes’s successor. Leo Salom, head of the bank’s U.S. division, has been in his role for more than two years. Riaz Ahmed became the head of TD’s capital markets unit in 2021, having previously worked in finance and treasury roles in his nearly 30-year career.
The Globe and Mail reported in January, citing confidential sources, that TD’s chief anti-money-laundering officer previously reported to the bank’s general counsel. That changed in March, 2022, when the anti-money-laundering division was moved into the lender’s risk department under the oversight of the chief risk officer.
Analysts have estimated that the penalty could reach as high as US$2-billion, and could include a consent order that may limit its ability to grow in the U.S.
Bank Head United States Role Institution Investigation Penalty Ceo Bank Of Montreal The Justice Department Jefferies
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