We now have a ballpark price tag to put on Toronto-Dominion Bank’s anti-money laundering lapses – $4-billion. That’s how much TD has set aside so far to cover off the penalties it anticipates will be levied by U.S. regulators.

That sum rose dramatically after the close of trading on Wednesday, when the bank announced it would make a US$2.6-billion provision in its fiscal third quarter. Combined with money already earmarked for U.S. fines, that pushes the total in excess of $4-billion Canadian. And while that’s an enormous financial toll, it’s far from the bank’s only problem.

TD is also facing potential constraints on its U.S. operations after an investigation found that a U.S. drug ring laundered more than US$650-million through a number of bank branches, including TD’s. Negotiations with U.S. authorities have weighed so heavily on TD’s outlook, investors are essentially ascribing negative value to TD’s U.S. retail bank, which makes $4-billion a year.

If there’s a silver lining here, it’s that TD says it expects a “global resolution,” including penalties both monetary and otherwise, to be “finalized by calendar year end.”

This news comes as TD reports its third-quarter financials this morning. It should make for a doozy of an earnings call!