On January 21, Toronto-Dominion Bank announced plans to sell approximately $9 billion of residential mortgage loans to align its balance sheet with a new U.S. regulatory cap, as reported by Bloomberg News on Tuesday. This step is part of a plea agreement made with government authorities last year, according to sources familiar with the matter.
TD Bank, Canada's second-largest bank and the 10th largest in the U.S., did not immediately respond to a Reuters request for comment. In October 2024, TD Bank made history as the largest U.S. bank to take action against money laundering, agreeing to pay over $3 billion in penalties to settle charges. The plea deal also resulted in the imposition of an asset cap and other business restrictions.
The portfolio for sale, with bids due next week, comprises jumbo mortgages held by U.S. homeowners with high credit scores, as mentioned in the report.