It has not been a good few weeks for Toronto Dominion Bank (TSE:TD) (NYSE:TD). This bank stock has been pummeled by a range of probes, lawsuits, fines, and more just over the last month. The latest trouble for TD Bank comes from issues of compliance with anti-money laundering regulations. That’s naturally a major problem, and it comes with a hefty dollar sign attached: up to $2 billion in cash penalties for that failure.
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Canadian banks are generally regarded as ironclad, very safe options, particularly for investors. Things like this just don’t happen much in the Canadian market, but when they do, they’re a disaster.
That’s not all the trouble TD Bank is facing, though. There’s also some trouble connected to a client solicitation scheme where TD Bank employees offered special rates to pull customers from Crescent Point Private Wealth, a Raymond James affiliate.
But TD Bank is working to shore up its image, offering grants to two Rhode Island charities. Sojourner House and Crossroads Rhode Island pulled in a combined $425,000 from TD Bank to help drive a subsidized housing program, a big deal given the rising housing crunch in the United States.
Is TD a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TD stock based on five Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 1.23% loss in its share price over the past year, the average TD price target of C$87.03 per share implies 11.9% upside potential.
Is TD the Right Stock to Buy for Passive Income?
Before you hurry to invest in TD, think about the following:
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