RE:IT'S ABOUT TIMESo according to the Globe and Mail, the money laudering occurred between 2016 and 2021 and after only a mere 5 years, the DOJ finally woke up and filed a criminal complaint in the fall of 2021. Yet despite what today is now being framed by the media as devastating news for TD, it appears that no TD Executives have yet to be arrested and/or criminally charged depite more than another 2 1/2 years having now passed since the DOJ filed the 'Criminal Complaint' in 2021. So it's reasonable to conclude that the DOJ has no compelling evidence to directly criminally tie any TD executives to this 5 year crime spree or they would have already done so.
So now the next question is were the top TD executives aware of the money laudering scheme and just turned a blind eye allowing it to continue for 5 years from 2016 to 2021? Well, logic would suggests that they must have known or sensed something but if they did, the DOJ hasn't made that connection since no TD executives have yet to be indicted on any charges. It's pretty clear that TD executives (or TD BOD) took action immediately folllowing the DOJ 'Criminal Complaint' as various heads rolled and management changes were made following the DOJ filed complaint but that's about it. So at this point, the best TD investors can hope for is resignations amongst those most accountable TD executives tied to this fiasco.
So now that we have some facts as outlined by the Globe and Mail, let's go look at the stock chart for TD during the various time periods from 2016 to today. Was the rising TD share price during this period due to the money laundering? Well, from 2016 to 2020 TD's share price was in an uptrend and nearly doubled from about $50 to $80 until the pandemic occurred in early 2020 but then TD's share price quickly dropped from $75 back to the 2016 $50 range (pretty much due to the pandemic situation) so if TD did realize any monetary benefits from the money laundering, that got wiped out in short order.
Then from March 2020 to Feb 2022,
despite the DOJ filing a 'Criminal Complaint' regarding the money laundering related and drug trafficking criminal investigation, TD shares more than double from $50 to $109! So apparently despite the DOJ 'Criminal Complaint' filing in October 2021 the market shrugged that off and ran TD shares to $109 bucks.
Then from Feb 2022 to July 2022, Wallstreet and Baystreet decided with TD at $109 bucks it was time to fleece the sheep, and TD shares commenced their rapid decline drop from $109 to about $78 (no doubt due to the market pricing in the DOJ investigation news). After a $31 CAD drop in TD shares, TD continues trading between about $80 to $90 dollars until the recent drop to $74 last week when apparently TD announced that they set aside an initial $450 million US as a provision for anticipated US regulatory fines which apparently triggered some analysts to conjure up a 'Worse Case Scenario' effects for TD and its shareholders.
Now I realize the wheels of justice turn slowly, but why is it that nearly 2 1/2 years has now passed since the DOJ filed their 'Criminal Complaint' in 2021 and the US regulatory authorities have yet to conclude this matter and impose their arbitrary fines and conditions upon TD? Is it perhaps because this is a US Presidential election year and the US is dealing with a nation wide fentanyl crisis and needs a Poster Child to make an example of? And why is there no mention of the other involved institutions mentioned below in the DOJ statement? Is it becuase they are US financial institutions that might get wiped out by such news?
"On Thursday, news emerged that lead defendant Da Ying Sze, who goes by David, pleaded guilty in 2022 to laundering hundreds of millions of dollars in cash, “consisting of narcotics and other illicit proceeds, utilizing a variety of financial institutions and methods,” the Justice Department wrote in a summary of its investigation." TD is not the first financial institution to be investigated by the US authorities for money laudering and they won't be the last. What I find most interesting is how the US regulatory authorities clearly didn't have the appropriate mechanisms and
monitoring systems in place that should have prevented 5 years of money laudering at TD in the first place, and then when they finally investigate such matters, are authorized to impose substantial regulatory fines in the $billions if they should choose.
From Google: "Money laundering contributes to wars, drug trade, human trafficking, and political corruption - the cancer of modern society. Money laundering is a global issue which affects economies across the world. It is estimated that up to 5% of global GDP is laundered each year, amounting to $2 trillion." Yes, that's $2 Trillion with a T! The TD money laundering iincident allegedly involved $653 million which is clearly a lot of money but still a far cry from $2 trillion US laundered anually. So who are all these 'other' financial institutions laundering the remainder of the $2 trillion laundered money per year and why in 2024 is TD (a foreign banking insttituion) being held up by US Regulatory Authorities as the Poster Child that aided the US Fentanyl crisis through $653 million of money laundering that ceased at TD 2 1/2 years ago? Well to me the answer is obvious and it's called 'US Politics'.
And poster NobleHouse, despite your recent rant post, if you think for a minute any of TD's executives are going to jail over this at this point, you need to get over it because if the DOJ had the evidence they'd already be idicted. And as far a firing any of them, without compelling evidence, the only thing that would do is allow them to sue TD for dismissal without cause and they'd end up getting God knows how many more millions (of shareholder's profits) in a civil suit settlement on top of their golden parachutes. Oh, and regarding your earlier post about me condoning the TD excecutive's 'criminal' involvement and your concerns with my moral compass, I have no issue with any of the TD executives going to jail over this incident, but last time I checked a person is presumed innocent until proven guilty yet you seem to believe that doesn't apply to these TD executives becuase in your mind they're already guilty as NOT charged. So perhaps you best go check your own moral compass and stop worrying about mine.
Regarding the TD share price and TD's image, some TD executive resignations / retirements about now would be an an interesting development but are unlikely given that they haven't exited to this point.
My opinion only, please DYODD.
HB77