(Bloomberg) — Toronto-Dominion Bank is setting aside $2.6 billion to cover fines it expects to pay for failures in its money-laundering controls, and the company sold part of its stake in Charles Schwab Corp. to fund it.
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Including a $450 million provision announced in April, the lender now estimates it will pay $3 billion related to its US compliance lapses.
“The bank expects that a global resolution will be finalized by calendar year-end,” Toronto-Dominion said in a statement after markets closed Wednesday.
Canada’s second-biggest bank said its ownership interest in Schwab will fall to 10.1% from 12.3% after selling 40.5 million shares of the discount broker. Toronto-Dominion acquired that stake in 2020 as part of a transaction to sell its interest in online brokerage TD Ameritrade Holding Corp. to Schwab.
The shares were being marketed at $61.35 to $62.65…
