What happened
TD Bank pleaded guilty to multiple criminal charges Thursday and agreed to pay the Justice Department and financial regulators more than $3 billion for facilitating hundreds of millions of dollars in money laundering by drug smugglers, terrorists, human traffickers and other criminal organizations. Along with the record financial penalties, Canada's No. 2 bank is prohibited from growing beyond its current size in the U.S. TD Bank is the 10th-largest U.S. retail bank, with more than 1,100 branches along the East Coast.
Who said what
The "flagrant" money laundering was "somewhat of an open secret" at TD Bank, The New York Times said, with managers making jokes about the activity and at least two employees taking bribes to enable it. "You guys really need to shut this down LOL," one bank manager emailed a colleague, fruitlessly, according to charging documents. "TD Bank created an environment that allowed financial crime to flourish," said Attorney General Merrick Garland. "By making its services convenient for criminals, it became one." TD Bank's outgoing CEO, Bharat Masrani, said the bank took "full responsibility" for the "failures" of its anti-money laundering program, and was working to fix them. "This is a sad day in our history, for which we are very regretful," he said.
What next?
The Justice Department will get the "biggest slice of the penalties, some $1.8 billion," while the Treasury's Financial Crimes Enforcement Network nets $1.3 billion, The Wall Street Journal said. Both agencies ordered independent monitors to "watch the bank closely and ensure compliance" with its commitments.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
How travel insurance through a credit card worksThe explainer Use a card with built-in coverage to book your next trip
-
‘We owe it to our young people not to lie to them anymore’instant opinion Opinion, comment and editorials of the day
-
Chile picks leftist, far-right candidates for runoff voteSpeed Read The presidential runoff election will be between Jeannette Jara, a progressive from President Gabriel Boric’s governing coalition, and far-right former congressman José Antonio Kast
-
US mints final penny after 232-year runSpeed Read Production of the one-cent coin has ended
-
How could worsening consumer sentiment affect the economy?Today’s Big Question Sentiment dropped this month to a near-record low
-
Musk wins $1 trillion Tesla pay packageSpeed Read The package would expand his stake in the company to 25%
-
Starbucks workers are planning their ‘biggest strike’ everThe Explainer The union said 92% of its members voted to strike
-
Warner Bros. explores sale amid Paramount bidsSpeed Read The media giant, home to HBO and DC Studios, has received interest from multiple buying parties
-
Electronic Arts to go private in record $55B dealspeed read The video game giant is behind ‘The Sims’ and ‘Madden NFL’
-
Trump proposes ending quarterly earnings reportsSpeed Read The SEC would have to approve any changes
-
Rupert Murdoch's conservative son wins succession battleSpeed Read Lachlan Murdoch will get control over the media empire that includes Fox News and The Wall Street Journal following his father's death, while his siblings will receive payouts
