Regulator response to TD drug money laundering allegations could lead to a cap on growth: analyst
BNN Bloomberg
One Canadian bank analyst says there could be $1 billion downside to Toronto Dominion Bank’s earning potential after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
The U.S. Department of Justice launched an investigation after discovering evidence of a drug-money-laundering operation in New York and New Jersey, the Wall Street Journal reported on May 2, citing court documents and people familiar with the case.
The Journal said the U.S. Justice Department investigation is focused on how Chinese drug traffickers allegedly used TD to launder at least US$653 million, and bribed TD employees to do so.
Gabriel Dechaine, a Canadian banks analyst with National Bank Financial says the aftermath of the probe could lead to rippling implications for TD’s revenue growth.
