TD Bank to exit US$15.4B stake of Charles Schwab as new CEO begins overhaul

Toronto-Dominion Bank announced connected Monday it volition exit from the 10.1% involvement it has successful fiscal services steadfast Charles Schwab, arsenic portion of a strategical reappraisal undertaken by the Canadian lender pursuing a landmark good from U.S. regulators.

TD holds 184.7 cardinal shares of Schwab’s communal stock, worthy astir $15.4 cardinal based connected its past closing price. Charles Schwab shares were past down 3.2% successful premarket trading.

Canada’s second-largest slope had warned of a challenging 2025 successful December and suspended its medium-term net forecast arsenic it works done its anti-money laundering remediation programme pursuing a U.S. regulatory probe. TD besides said it would clasp a strategical review.

In October, TD became the largest slope successful U.S. past to plead blameworthy to violating a national instrumentality aimed astatine preventing wealth laundering, and agreed to wage much than $3 cardinal successful penalties to resoluteness the charges.

The plea deal, which includes a uncommon imposition of an plus headdress and different concern limitations, was a effect of aggregate U.S. authorities investigations into what authorities described arsenic pervasive issues.

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“As portion of our strategical review, we person been evaluating superior allocation and person made the determination to exit our Schwab investment,” TD’s recently appointed CEO Raymond Chun said.

Chun became CEO connected February 1, replacing long-time main Bharat Masrani much than 2 months earlier than initially planned.

TD said it plans to usage C$8 cardinal ($5.58 billion) of the proceeds for stock buybacks and put the remainder successful its businesses to boost show and accelerate integrated growth.

The slope added it volition proceed to negociate superior prudently and fortify its infrastructure.

TD is presently Schwab’s largest shareholder, a involvement which it acquired arsenic portion of the fiscal services firm’s $26 cardinal acquisition of TD Ameritrade successful 2020.

Schwab successful a abstracted connection said it has agreed to repurchase shares worthy $1.5 cardinal from TD successful a backstage transaction.