TD Bank sells Charles Schwab Stake to prevent AML Fallout

TD Bank reported to sell 10.1% stake in investment company Charles Schwab.

That is according to a report Monday (February 10) on the Wall Street Journal (WSJ), saying this is the first major shift under the new CEO Raymond Chun To purify losses after a large scandal associated with money related to money.

Chun, which has become a chief executive this month, tells the WSJ chosen by the Schwab investment that follows TD launched last year.

The report says the analysts emphasize that investment sales may be between the first cun moves as he tries to trust the investor. Such trust has been with the last year of Canadian bank requests guilty in many cases for Anti-cash cleaning measures of cleaning (AML) In US surgery, and agreed to pay $ 3.09 billion.

Bharat MasraniWho is the CEO of TD for 10 years, His retirement was announced Shortly afterwards. Chun, the main operating officer of the bank, was appointed to take his place.

TD says it plans to use 8 billion Canadian dollars (nearly $ 5.6 billion) from selling Schwab investment to regain parts of it. The balance of revenues will be returned to TD businesses to help fuel performance and development of organic growth, Chun said.

In the quarterly announcement earned in December, TD said it be “challenging” For the bank to create the development of income in this fiscal year, because it continues to deal with the deal with AML remediation and investing in its business.

“I remain confident in the potential of growing up on our personal and commercial Banking in Canada, managing wealth, insurance and wholesale parts of the banking,” Cun said in time. “And as we expect to change US balance and remediation to AML will effect the US Regment section, we remain commitment to the US market and confidently with the strength of our Prankaya.”

In the last month, the bank pointed two executives to New financial financial crims. Jacqueline SanjuasThe Secrecy Secrecy Officer of TD, was appointed to serve as a global head of financial crime risk.

While, Stephen JoyceVice president of financial crop management, delivering change and repair, named Interim Header Management Management for Canadian and International) businesses.