(Reuters) – Toronto-Dominion Financial institution is aiming to promote about $9 billion of residential mortgage loans with a view to modify its steadiness sheet to adjust to a brand new cap imposed by the U.S. regulators, Bloomberg Information reported on Tuesday.
This is part of the plea settlement the Canadian lender reached final yr with the federal government authorities, the report added, citing folks conversant in the matter.
TD Financial institution, Canada’s second greatest financial institution and the tenth largest within the U.S., didn’t instantly reply to a Reuters request for remark.
In October 2024, TD Financial institution turned the most important financial institution in U.S. historical past to plead responsible to violating a federal legislation aimed toward stopping cash laundering. It agreed to pay over $3 billion in penalties to resolve the costs.
The plea deal included a uncommon imposition of an asset cap and different enterprise limitations.
The sale portfolio, for which bids are due subsequent week, consists of so-called jumbo mortgages obtained by U.S. householders with comparatively excessive credit score scores, the report added.
(Reporting by Pritam Biswas in Bengaluru; Enhancing by Alan Barona)
