FHN - This High-Yield Bank Is Still Growing Despite a Merger Failure
2023-06-07 05:10:00 ET
Canada's Toronto-Dominion Bank (NYSE: TD) has a long history of growing in the U.S. market through the acquisition of smaller regional banks. Additions like the South Financial Group and Commerce Bank are the big examples. And yet, Toronto-Dominion just had a major merger deal effectively shot down by U.S. regulators.
What's the big takeaway from this apparent setback for Toronto-Dominion Bank?
In February 2022, Toronto-Dominion Bank, which is also known as just TD Bank, agreed to buy First Horizon (NYSE: FHN) for $13.4 billion. The goal of the deal was to expand the Canada-based institution's business in key markets in the Southeastern U.S. TD Bank's U.S. subsidiary is a predominantly East Coast banking franchise, so the deal would have been complimentary in nature. Then the regional banking crisis hit in 2023 and regulators seemed to be dragging their feet. But according to recent media reports, the key issue was that U.S. regulators had concerns about the way TD Bank handles anti-money-laundering issues.
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This High-Yield Bank Is Still Growing Despite a Merger Failure