From a CTV News article - Some People Get It. 💰 CIBC analyst Paul Holden said in a note that the money-laundering settlement and asset cap is "worse" than he had been expecting for TD. CIBC reduced its price target for TD stock from $100 to $96 on Thursday.
But Holden said TD is currently trading at a 12 per cent discount to the average of its big bank peers, and said he believes that is "too punitive" given that the U.S. asset cap reduces TD's growth potential, but does not eliminate it.
TD is the second largest Canadian bank by market capitalization.
It admitted in its plea agreement that it allowed three money laundering networks to transfer more than US$670 million through TD Bank accounts over a six-year period.
This report by The Canadian Press was first published Oct. 11, 2024.