TD sells 40.5M Schwab shares to fund potential money laundering fines

TD Bank (TD) last night announced that the bank continues to pursue a global resolution of the civil and criminal investigations into its U.S. Bank Secrecy Act anti-money laundering program by its U.S. prudential regulators, the Financial Crimes Enforcement Network and the U.S. Department of Justice. In anticipation of a global resolution, which will include monetary and non-monetary penalties, the bank has taken a further provision of $2.6B in its Q3 financial results to reflect its current estimate of the total fines related to these matters. The bank expects that a global resolution will be finalized by calendar year end. TD also announced that it has sold 40.5M shares of common stock of Charles Schwab (SCHW). The share sale will reduce TD’s ownership interest in Schwab from 12.3% to 10.1%. In connection with this sale, TD has agreed not to sell any additional Schwab shares for a period of 45 days. TD said it has no current intention to divest additional shares. The Schwab shares were sold a price of $61.65. Shares of Schwab are down 4% to $61.95 in premarket trading while TD Bank is down 4% to $57.52.