According to the Wall Street Journal, regulator worries about Canadian lender TD Bank’s anti-money laundering (AML) procedures caused the USD 13.4 billion acquisition of US bank First Horizon to fall through.
Last week, TD abandoned its plan to purchase First Horizon, blaming regulators. The agreement had previously been announced in February 2022 but had been repeatedly postponed. Although it has been stated that the delays resulted from worries that TD might gain too much sway in the US market, the WSJ reports that there were additional worries.
The handling of unusual transactions by TD Bank has come under scrutiny from the Federal Reserve and the Office of the Comptroller of the Currency.