U.S.-listed shares of Canada’s TD Bank (NYSE:TD) fell by approximately 3% to $60.79 in premarket trading on Thursday, following reports of a major settlement with U.S. regulators.
The Wall Street Journal revealed that TD is expected to pay around $3 billion in penalties after being charged with failing to properly monitor money laundering activities.
The settlement, which TD has yet to comment on, is anticipated to include restrictions from the Office of the Comptroller of the Currency.
These restrictions would impose an asset growth limit on the Canadian bank, barring it from expanding beyond a certain level in the United States.
This news comes after TD Bank reported its first quarterly loss in decades in August, attributing a significant portion to provisions set aside for anticipated regulatory fines.
Meanwhile, TD's U.S. share price has fallen approximately 3% year-to-date.