TD faces a $3 billion fine, growth restriction to settle US investigations

Unnamed sources told the WSJ that the settlement would also include the Justice Department, FinCEN and the Federal Reserve.

It would place TD under a similar oversight and restriction regime as Wells Fargo. The Wall Street firm was caught operating fake accounts for customers in 2018 and has since faced restrictions on growth and additional costs to improve compliance procedures.

The investigations have cost TD a lot of money both financially and in terms of growth, derailing its planned takeover of US regional bank First Horizon, weakening its share price and leading to its first quarterly loss since 2003.

Last month, TD was ordered to pay a $20 million fine plus $8 million to customers after the U.S. Consumer Financial Protection Bureau found the company “repeatedly shared inaccurate, negative information about its customers to consumer reporting companies.” , which had a negative impact on customers’ creditworthiness. The CFPB said TD knew about the problems for more than a year before fixing them.

TD also recently agreed to pay more than $20 million to settle investigations by U.S. prosecutors and regulators into allegations of a former trader’s “spoof” orders aimed at manipulating the U.S. Treasury market.