FHN - Anti-money-laundering practices may be behind First Horizon/TD deal break - report
2023-05-08 14:25:18 ET
Concerns of over the anti-money laundering practices at TD Bank ( NYSE: TD ) may have led to the termination of TD Bank's planned acquisition of First Horizon ( NYSE: FHN ). TD fell 1%.
The banks called off the deal last Thursda y, citing uncertainty over when and if regulators would allow the $13.4 billion deal to be approved, sending First Horizon ( FHN ) shares tumbling 33% in the wake of the surprise news.
The inability of the Office of the Comptroller of the Currency and the Federal Reserve to give TD Bank ( TD ) the greenlight over its anti-money laundering practices ultimately appeared to nix the deal, according to a WSJ report, which cited people familiar. The regulators' worries centered around how TD ( TD ) handled unusual transactions in recent years.
"TD works diligently to prevent criminals from using the bank for illegal activity, to strengthen its risk management programs on an ongoing basis, and to protect the interests of our customers, the bank, and the financial system," a TD ( TD ) spokeswoman said in an emailed statement to the WSJ.
First Horizon ( FHN ) CEO Bryan Jordan said on a company conference call on Thursday that regulators' issues with the deal were unrelated to First Horizon.
"I'd like to be very clear. The fact that regulatory approvals weren't able to be obtained by May 27 did not relate in any way to First Horizon," Jordan said on the call.
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Anti-money-laundering practices may be behind First Horizon/TD deal break - report