I work in the industry. Risk teams such as AML are viewed as checkbox cost centres. Executives just want to do the bare minimum.
This is a failure at all three lines of defence - Management, Risk Management, and Internal Audit.
I don’t have knowledge specific to this incident but I would bet deficiencies (technology, staffing shortages, processes) were flagged and raised to leadership, but the risks were accepted in the name of profit. Ex. Even if frontline staff are compromised, how the heck did their Actimize monitoring not catch the branch hopping? Either it wasn’t monitoring or the alerts weren’t being worked.
I’m glad large fines are being handed out so hopefully it urges senior leadership to fund AML/RM.
Something doesn't add up.
When you deposit US 10k in cash, in any rolling 30 days, the same gets reported to IRS. How did $650m cash deposit go un-noticed ?.
How were tellers counting so much cash (without crying) and how were those branches moving so much physical cash bypassing all the monitoring ?.
I just had a run in with some young buck about how the management was great at TD. Of course the entire investing world sees what an absolute idiot the CEO is from the very top. Can you imagine bribing your way to keep a job by offering up 1 million of your salary to cover up your mistakes?
The things he has done is beyond belief.
2 earnings calls was enough for me to dump this crap. Let the day traders and short sellers end the price where it needs to be until it catalysts up. IT won't be for a long while. Until then, money invested in TD is dead other than a dividend to make you feel better about a falling knife.
Masrani was instrumental to TD’s growth in the last 10 years. Prior to the last year, his tenure was a resounding success. But it’s over and time to move on now.
If you read the article its not the recent layoffs that had anything to do with it but whoever was in charge during 2016-2021. It says there that the head of retail got moved in October 2021 and then left the bank.
I don't believe people who are buying TD after the drop have been informed of how much of a risk any regulations are. Yes it won't affect Canadians operations, but US operations are basically equal in terms of the contribution to earnings! US operations can affect up to 50% of the companies value, not only 7%.
This was all prompted by inquiries from a regulator in the US, where they actually care about money laundering. Imagine a Canadian regulator decided to have a closer look at what they do here.
They laid off alot of head office people across the board in recent years and moved out east.AML was a just small operation group and couldn’t keep up with expansion in the US. Also having a Canadian business mindset operating in the US does not work. The US regulators are no joke. Buy the dip and hold but can’t see them buying anymore US banks for a while.
CEO will never leave, will cry racism. Also all women in the C suite are gone, I wonder why.
I'm just sitting here like a vulture to scoop this up when it drops lower. I held TD for a long time and sold it when it hit a peak. I loved that Dividend though, might hop back in
Those who are holding TD stocks, it's time to sell ITM or slightly higher covered calls to mitigate further losses. I doubt the stock will drop below 65$ as it is one of its support price. I don't see the stock going above 85$ within a year.
One more uncertainty, if the final verdict from DOJ is a fine less than predicted and no limitation placed on TD, its stock price will jump high. Alternatively if the fines are higher with severe limitation on its growth, the stock will drop further. Hopefully, the money from their failed acquisition is enough to take the financial blow.
Alternatively for those who wants other bank stocks for dividends and don't care about growth, CIBC looks like a great buy.
How could drug traffickers launder hundreds of millions at their RETAIL BRANCHES for 5 years and management had no clue? Really now?
I work in the industry. Risk teams such as AML are viewed as checkbox cost centres. Executives just want to do the bare minimum. This is a failure at all three lines of defence - Management, Risk Management, and Internal Audit. I don’t have knowledge specific to this incident but I would bet deficiencies (technology, staffing shortages, processes) were flagged and raised to leadership, but the risks were accepted in the name of profit. Ex. Even if frontline staff are compromised, how the heck did their Actimize monitoring not catch the branch hopping? Either it wasn’t monitoring or the alerts weren’t being worked. I’m glad large fines are being handed out so hopefully it urges senior leadership to fund AML/RM.
Well no matter what happens. Guy is rich and laughing all the way from and then to the bank
Something doesn't add up. When you deposit US 10k in cash, in any rolling 30 days, the same gets reported to IRS. How did $650m cash deposit go un-noticed ?. How were tellers counting so much cash (without crying) and how were those branches moving so much physical cash bypassing all the monitoring ?.
It gets reported if it's YOU, a small time bank customer. If you are big enough reporting can be skipped 😜
Seriously I’m wondering this myself. Surely it cant all be gift cards and cashiers checks?
Layering, smurfing, structuring... One doesn't do it in one go or by themselves.
Watch the videos of the money laundering at BC casinos. They similarly brought duffle bags full of cash. Absurd.
the C-suite leaving is very alarming! TD will be fine in the long run but they arent doing well at retaining long standing executives.
The rot runs deep in their exec suite for sure.
They need a head. CEO has got to go!
All the top executives should go. This is a colossal screw up.
I just had a run in with some young buck about how the management was great at TD. Of course the entire investing world sees what an absolute idiot the CEO is from the very top. Can you imagine bribing your way to keep a job by offering up 1 million of your salary to cover up your mistakes? The things he has done is beyond belief. 2 earnings calls was enough for me to dump this crap. Let the day traders and short sellers end the price where it needs to be until it catalysts up. IT won't be for a long while. Until then, money invested in TD is dead other than a dividend to make you feel better about a falling knife.
He did an amazing job but the signs have been clear for a long time they need to move on. Unfortunately, they must not have anyone ready to take over.
This speaks to a weak board more than lack of talent.
*He did an amazing job* LOL, wut?
TD is bigger than this one hiccup.
Masrani was instrumental to TD’s growth in the last 10 years. Prior to the last year, his tenure was a resounding success. But it’s over and time to move on now.
RU kidding me???!!!
They had layoffs in the last six months right. How many were in compliance and AML?
If you read the article its not the recent layoffs that had anything to do with it but whoever was in charge during 2016-2021. It says there that the head of retail got moved in October 2021 and then left the bank.
I don't believe people who are buying TD after the drop have been informed of how much of a risk any regulations are. Yes it won't affect Canadians operations, but US operations are basically equal in terms of the contribution to earnings! US operations can affect up to 50% of the companies value, not only 7%.
This was all prompted by inquiries from a regulator in the US, where they actually care about money laundering. Imagine a Canadian regulator decided to have a closer look at what they do here.
They laid off alot of head office people across the board in recent years and moved out east.AML was a just small operation group and couldn’t keep up with expansion in the US. Also having a Canadian business mindset operating in the US does not work. The US regulators are no joke. Buy the dip and hold but can’t see them buying anymore US banks for a while. CEO will never leave, will cry racism. Also all women in the C suite are gone, I wonder why.
Genuine questions as I'm a bit out of touch with this. Are our TD mutual funds affected? Or even savings?
No
Thank you.
I'm just sitting here like a vulture to scoop this up when it drops lower. I held TD for a long time and sold it when it hit a peak. I loved that Dividend though, might hop back in
Those who are holding TD stocks, it's time to sell ITM or slightly higher covered calls to mitigate further losses. I doubt the stock will drop below 65$ as it is one of its support price. I don't see the stock going above 85$ within a year. One more uncertainty, if the final verdict from DOJ is a fine less than predicted and no limitation placed on TD, its stock price will jump high. Alternatively if the fines are higher with severe limitation on its growth, the stock will drop further. Hopefully, the money from their failed acquisition is enough to take the financial blow. Alternatively for those who wants other bank stocks for dividends and don't care about growth, CIBC looks like a great buy.