TD Bank down after agreement to pay $3 bln to US regulators, asset cap imposition
Updates
** Canada's TD Bank TD.TO down ~4.4% to C$82.32
** Two TD Bank units have pleaded guilty to U.S. criminal charges and agreed to pay $3 billion in combined penalties to resolve federal government probes into money laundering, U.S. authorities say
** The plea deal includes imposition of an asset cap and other limitations to its business
** The asset cap, imposed by the Office of the Comptroller of the Currency, is a rare step typically reserved for severe cases
** "We believe that the market was becoming increasingly comfortable with the thought that there would not be any growth restrictions placed on TD," Jefferies analyst John Aiken says
** TD will need to find a new avenue for growth from its traditional reliance on U.S. retail banking — brokerage
** TD reported its first loss in decades in August as it set aside an extra $2.6 bln to cover expected fines from U.S. regulators
** Including session's losses, stock down ~3.9% YTD
Reporting by Manya Saini in Bengaluru
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