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TD Bank Sells Shares in Charles Schwab

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By mtkang @ Adobe Stock

To help finance fines from punishments related to its failure to prevent money laundering by Chinese crime syndicates pushing fentanyl into the United States, TD Bank has decided to sell a portion of its large stake in the broker-bank Charles Schwab. Your Survival Guy has been a critic of Charles Schwab and its own banking practices in the past. Connor Hart reports in The Wall Street Journal:

TD Bank has set aside $2.6 billion for fines it is likely to face from U.S. regulators because of weaknesses with its anti-money-laundering practices.

Canada’s second-largest bank by market capitalization said Wednesday the fiscal third-quarter provision reflects its current estimate of the total fines related to these matters.

The bank plans to offset part of the provision through the sale of 40.5 million shares of common stock in Charles Schwab, which would reduce TD’s ownership interest in the wealth-management company to about 10% from more than 12%.

The divestiture is worth $2.62 billion, based on Charles Schwab’s closing price of $64.57 on Wednesday. TD said it has no current intention to sell additional shares.

Action Line: Your Survival Guy prefers to separate bank accounts from portfolio accounts. Family-owned Fidelity Investments is not a bank. It’s a private, family-run business, which keeps the pressures of Wall Street earnings expectations at bay. You don’t want to do business with a company that has a fiduciary duty to shareholders in conflict with its fiduciary duty to you. When you want to talk to a fiduciary about your investment plan, I’m here. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.
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