TD Bank Divests Charles Schwab Stake Following Money Laundering Penalties

The sale of TD Bank's 10.1% stake in Charles Schwab is part of a strategic overhaul under new CEO Raymond Chun after compliance failures led to major fines and restrictions.

• TD Bank is selling its entire 10.1% stake in Charles Schwab to address financial and operational challenges stemming from anti-money laundering violations in its U.S. operations.
• The Canadian bank will use approximately $5.6 billion from the sale to repurchase 100 million of its own shares and reinvest in its businesses to drive growth and performance.
• This decision follows a $3 billion fine and a $434 billion asset cap imposed by U.S. regulators after TD admitted to compliance failures last year.
• New CEO Raymond Chun, who took over this month, initiated the sale as part of a broader strategic review to streamline operations and reallocate capital.
• Despite the divestment, TD will maintain its insured deposit agreement with Schwab, and Schwab plans to repurchase $1.5 billion of its own shares as part of the transaction.

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