TD Bank hit with record fine

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why TD Bank has been fined $3 billion.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:04The week came to an end with record-closing highs for the Dow and the S&P 500.

00:10Stocks held their gains even though consumer sentiment dipped in early October.

00:13While inflation worries are easing, consumers are still frustrated by high prices.

00:19Next week, earnings season will pick up.

00:20Netflix, Procter & Gamble, and Johnson & Johnson will report.

00:24And it will be a big week for the financials with numbers from American Express, Goldman

00:28Sachs, Bank of America, and Citigroup.

00:32Sticking with banks, TD Bank has been slapped with a record $1.3 billion fine for allowing

00:38drug money to be laundered through U.S. operations.

00:41That fine, which is to be paid to the Treasury Department's Financial Crimes Unit, is just

00:45one of many.

00:47The bank also has to pay $1.4 billion to the Department of Justice, $450 million to the

00:53Office of the Comptroller of the Currency, and another $123.5 million to the Federal

00:59Reserve.

01:00Much of the money laundering was tied to the illicit distribution of fentanyl.

01:04TD Bank is the largest bank ever to admit that it violated America's Bank Secrecy Act.

01:10It somehow turned a blind eye, which allowed three money laundering networks to use the

01:15bank to legitimize more than $670 million.

01:19In a press conference, Attorney General Merrick Garland said, quote, by making its services

01:23convenient for criminals, it became one.

01:26In one example of the bank's gross negligence, employees accepted gift cards worth $57,000

01:33in order to process transactions that would not show up on regulators' radars.

01:37TD Bank, which is Canada's second largest bank and the 10th largest in the U.S., now

01:42faces a list of restrictions, including federal monitoring, in order to switch its anti-money

01:49laundering operations to the U.S., and its growth in the states will now be capped.

01:54TD's CEO called this, quote, a difficult chapter in our bank's history.

02:00That'll do it for your daily briefing from the New York Stock Exchange.

02:02I'm Robert Miller.

02:03Thanks for watching.

02:04See you next time.

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