Air turbulence: When can it become dangerous?
Flight turbulence like that encountered by a Singapore Airlines flight on Tuesday is extremely common, but there's one aspect of severe turbulence an aviation expert says can lead to serious injury.
TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst, after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
National Bank analyst Gabriel Dechaine said in a note that the worst-case scenario of the multiple U.S. investigations TD faces needs reassessing after the Wall Street Journal reported the link on Thursday.
The newspaper said the U.S. Justice Department investigation is focused on how Chinese drug traffickers allegedly used TD to launder at least US$653 million, and bribed TD employees to do so.
TD did not directly confirm the report, but said its anti-money laundering defences had been deficient.
"Criminals relentlessly target financial institutions to launder money and TD has a responsibility and an obligation to thwart their illegal activity," said chief executive Bharat Masrani in a late Friday statement.
"I regret that there were serious instances where the bank's AML program fell short and did not effectively monitor, detect, report or respond. This is unacceptable and not in line with our values."
The bank said a comprehensive overhaul of its program is well underway, with over $500 million already spent in program remediation and platform enhancements.
The severity of the allegations means TD could not only face fines well above the $500 million to $1 billion that many investors have anticipated, but also more severe regulator-imposed limitations on its business activities, said Dechaine.
"We believe investors need to put greater weight on worst-case scenarios for the stock," he said in a note.
The cumulative fines could easily hit $2 billion, while regulators could put in place restrictions, including limits on its balance sheet growth, that could affect bank operations for years, said Dechaine.
In a worst-case scenario, the issue could erode TD's future earnings potential by more than $1 billion, he said, and he has dropped his price target for the bank's TSX-listed shares by almost nine per cent to $84.
The link to drug trafficking comes the same week TD announced it had taken an initial provision of US$450 million in connection to the ongoing U.S. regulatory inquiry into its anti-money laundering compliance program.
The bank said on Tuesday its discussions with three U.S. regulators and the Department of Justice are ongoing, and it anticipates additional financial penalties.
Separately, Canada’s financial-crime watchdog Fintrac levied a $9.2-million penalty against the bank on Thursday for non-compliance with money laundering and terrorist financing measures.
TD Bank's stock price fell almost six per cent to $74.80 Friday on the Toronto Stock Exchange.
This report by The Canadian Press was first published May 3, 2024.
Flight turbulence like that encountered by a Singapore Airlines flight on Tuesday is extremely common, but there's one aspect of severe turbulence an aviation expert says can lead to serious injury.
British Columbia serial killer Robert Pickton was attacked and sustained life-threatening injuries in a Quebec prison Sunday in what officials described as a 'major assault.'
As Prime Minister Justin Trudeau continues the 'Team Canada' charm offensive to U.S. lawmakers and business leaders, Canada's ambassador to the United States downplayed the effect of another Trump presidency on Canada.
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House of Commons Speaker Greg Fergus is facing fresh Conservative-led calls to resign, this time over "very partisan" and 'inflammatory' language used – the Liberals say mistakenly – to promote an upcoming event.
The Toronto Blue Jays have offered tickets and a signed baseball to a fan who says she was struck in the face by a 110 m.p.h (177 km/h) foul ball at Friday’s game.
Ontario Provincial Police continue to investigate a long weekend fatal boat collision on Bobs Lake, north of Kingston, Ont.
In his latest column for CTVNews.ca, former NDP leader Tom Mulcair argues that if there's an unofficial frontrunner in the eventual race to replace Justin Trudeau as Liberal leader, it has to be former Bank of Canada governor Mark Carney.
The organizers of a month-long boycott of Loblaw-owned stores say they've decided to extend the boycott past May.
Public libraries in Atlantic Canada are now lending a broader range of items.
Flashes of purple darting across the sky mixed with the serenading sound of songs will be noticed more with spring in full force in Manitoba.
Catching 'em all with impressive speed, a 7-year-old boy from Windsor, Ont. who only started his competitive Pokémon journey seven months ago has already levelled up to compete at a world championship level.
A sanctuary dedicated to animals with disabilities is celebrating the third birthday of one of its most popular residents.
2b Theatre recently moved into the old Video Difference building, seeking to transform it into an artistic hub, meeting space, and temporary housing unit for visiting performers in Halifax.
A B.C. woman says her service dog pulled her from a lake moments before she had a seizure, saving her life.
A Starbucks fan — whose name is Winter — is visiting Canada on a purposeful journey that began with a random idea at one of the coffee chain's stores in Texas.
Members of Piapot First Nation, students from the University of Winnipeg and various other professionals are learning new techniques that will hopefully be used for ground searches of potential unmarked grave sites in the future.
ALS patient Mathew Brown said he’s hopeful for future ALS patients after news this week of research at Western University of a potential cure for ALS.