Toronto-Dominion Bank will pay about $3 billion in penalties and face restrictions on its U.S. growth in a settlement with regulators over its failure to catch money laundering, the Wall Street Journal reported.
Regulators are likely to announce a settlement with the Canadian bank on Thursday, though that timing may change, a person familiar with the matter told Bloomberg, asking not to be named discussing confidential information.
The bank said it plans to hold a conference call and will confirm the time later.
The Office of the Comptroller of the Currency is expected to impose a cap on Toronto-Dominion's U.S. retail banking assets as part of the agreement, the Journal said, citing people familiar with the matter it didn't identify.
Bharat Masrani is leaving as Toronto-Dominion's CEO next year. He said he takes responsibility for the compliance problems in the bank.
The size of the financial penalty doesn't come as a surprise because Toronto-Dominion has already set aside $3 billion in provisions for the settlement.
But an asset cap seems certain to prevent the bank from carrying on the growth-by-acquisition strategy it has followed in U.S. retail banking for much of the past two decades. Wells Fargo & Co. has been under similar regulatory limits on the size of its balance sheet for several years.