(Reuters) - Toronto-Dominion Bank is aiming to sell about $9 billion of residential mortgage loans in order to modify its balance sheet to comply with a new cap imposed by the U.S. regulators, Bloomberg News reported on Tuesday.
This is a part of the plea agreement the Canadian lender reached last year with the government authorities, the report added, citing people familiar with the matter.
TD Bank, Canada's second biggest bank and the 10th largest in the U.S., did not immediately respond to a Reuters request for comment.
In October 2024, TD Bank became the largest bank in U.S. history to plead guilty to violating a federal law aimed at preventing money laundering. It agreed to pay over $3 billion in penalties to resolve the charges.
The plea deal included a rare imposition of an asset cap and other business limitations.
The sale portfolio, for which bids are due next week, includes so-called jumbo mortgages obtained by U.S. homeowners with comparatively high credit scores, the report added.
(Reporting by Pritam Biswas in Bengaluru; Editing by Alan Barona)