TD Bank tries to raise $14 billion Schwab Stake exit
(Bloomberg) – Toronto – Ruling Bank expects to raise it in the sale of all shares of Charles Schwab Corp. after its historic U.S. loan sales settlement as part of a company overhaul About $14 billion.
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Toronto – The Bureau of Statistics will sell 184.7 million Schwab's common stock, accounting for 10.1% of economic ownership, it said in a statement Monday. Schwab has agreed to buy back its $1.5 billion stock from TD.
Canada's second-largest bank reached a settlement with the U.S. Department of Justice and banking regulators in October because it failed to launder money on several U.S. branches. Toronto – The Bureau of Statistics agrees to pay nearly $3.1 billion in fines and other fines, last month it said it is accelerating its CEO-transition process, attacking Raymond Chun, two earlier than originally planned Involve in advance months.
“As part of the strategic review, we have been evaluating capital allocation and have decided to exit our Schwab investment,” Chun said in a statement.
Monday at Bloomberg Monday morning, Toronto-Dimignon expects to generate about $14 billion in revenue through stock sales. “In less than five years, this investment has produced a great return and we think it is the right time to redistribute capital,” he said in the memo.
As part of the deal, Canadian lenders acquired their ownership stake in 2020 to sell their online broker TD Ameritrade Holding Corp. to Schwab. It sold 400.5 million Schwab shares in August, cutting its first 12.3% stake to raise about $2.5 billion to help pay for fines in the money laundering investigation.
Toronto-Dominion said it plans to use $8 billion in earnings to buy back shares and will invest balances in the company's business.
Schwab's representative declined to comment on regulatory reasons.
Chun had previously stated that Toronto-Rule's ownership of Schwab shares is separated from the company's consent to enable Schwab customers to provide scan-range accounts. With the help of a sweep plan, uninvested cash in the brokerage account will be automatically transferred to the higher-interest account.