TD shareholders kept waiting for news on anti-money laundering probe

financialpost.com:

TORONTO — TD Bank chief executive Bharat Masrani says he hopes to be able to say more soon on the investigation into the bank’s anti-money laundering measures.

Masrani made the remarks as he faced shareholders Thursday at the bank’s annual general meeting, the first since its US$13.4-billion takeover of First Horizon bank fell apart and the bank disclosed that it expects to face penalties from an investigation from U.S. regulators related to its anti-money-laundering program.

“Regretfully, our program was not where it needed to be,” said Masrani. “We know where our issues are, we are working to fix them.”

He said that he understands shareholders want to know more about the investigation, which includes the U.S. Department of Justice, but that given confidentiality requirements he can’t provide more detail or speculate on the timing of updates.

“I’m hoping that in the near term, I will be able to, and I’d be really thrilled that at that time, you know, I could provide more detail,” said Masrani.

“But in the meantime, I would ask you to be patient.”

TD called off the First Horizon deal in May last year, citing timing uncertainty, while in August it disclosed that it expects U.S. regulators to impose penalties.

Masrani was also pressed Thursday on the share price performance of the bank, which has sunk over 27 per cent from the high reached in February 2022.

The bank’s fundamental performance is strong, he said, but he acknowledged that the investigation has weighed on the stock.

“Without a doubt shareholders have some anxiety, as do we, regarding our issue in the U.S., and until there is better clarity, I’m sure there is pressure.”

Masrani emphasized that TD still has a significant presence and potential in the U.S., even