Latest news with #OfficeoftheComptrolleroftheCurrency
Yahoo
22-05-2025
- Business
- Yahoo
TD to spend $1B in two-year span on compliance fixes
TD Bank Group plans to invest $1 billion over a two-year period to beef up its anti-money-laundering controls, after compliance failures led to historic regulatory penalties and handcuffed its U.S. growth. The herculean compliance overhaul is TD's top priority, executives said Thursday, as the Toronto-based bank also juggles a new restructuring plan, the scaling back of its American business and growing economic uncertainty due to policies. "While we still have work to do, we remain on track with our planned remediation activities and are building the foundational AML program that we need for the years ahead," said Leo Salom, who leads TD's U.S. banking operations, on a call with analysts. In October, TD agreed to pay $3.1 billion in penalties and was ordered to put U.S. asset growth on hold after allowing the movements of more than $670 million in dirty money through the bank. The company had previously projected spending $500 million on anti-money-laundering remediation efforts during the fiscal year that ends in October, as it upgrades its training, analysis capabilities and protocols. On Thursday, TD Chief Financial Officer Kelvin Tran told analysts that the bank expects similar investments in the fiscal year that ends in October 2026. Salom said during the call that he thinks the bank is making progress. "We wanted to give the Street a sense of what 2026 was going to look like," Salom said. "The composition of spend might change a little bit. It might be a little less remediation, more validation work, more lookbacks, monitor costs, et cetera…. But we think the overall spend level is going to be similar." Across the first two quarters of 2025, the bank has invested $196 million on the anti-money-laundering compliance efforts. Salom said there will be an uptick in those expenses in the back half of the year as the company delves "into the meat of our remediation delivery programs." TD plans to deploy machine learning technology in the third quarter to "increase investigative productivity," along with additional reporting and controls for cash management activities. The bank feels confident about its expense guidance for 2025 and 2026, and those costs will eventually decline "at some point in the future," Salom said. TD also said Thursday that it's on track to meet its previous projection of a 10% reduction in U.S. assets by the end of October. At the end of April, the U.S. bank had about $399 billion of assets, putting it below the $434 billion cap imposed by the Office of the Comptroller of the Currency. The bank sold or ran off about $11 billion in U.S. loans during the second quarter, and announced plans to wind down a $3 billion point-of-sale financing business that services third party retailers in the also plowed ahead with plans to remix its bond portfolio by selling relatively low-yielding bonds to reinvest in higher-returning securities. Salom said the bank should meet its forecast of restructuring $50 billion of securities in the next few weeks. The bank expects to generate a benefit to net interest income of close to $500 million between November 2024 and October 2025, he said. While anti-money-laundering efforts have taken center stage at the bank's performance updates, TD also delivered earnings results that beat analyst expectations during the second quarter, which ended April 30, as loan-loss provisions were better than forecast. The bank reeled in adjusted earnings per share of Canadian dollars $1.97, compared with analyst consensus of CA$1.78. Those results didn't include a major gain from the company's sale of its investment in Charles Schwab. The company announced in February it would exit its entire 10.1% stake in the brokerage firm. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Analysis-Banking sector says easing of US leverage rules could support Treasury market
By Pete Schroeder, Saeed Azhar, Davide Barbuscia WASHINGTON/NEW YORK (Reuters) -The banking industry is optimistic that U.S. regulators will soon move to change how much capital they set aside against typically safe investments, particularly after the turmoil in Treasury markets last month. Such a move to revamp the "supplementary leverage ratio" could reduce the amount of cash banks must reserve, freeing them up for more lending or other activities, and could incentivize banks to play a larger role in intermediating Treasury markets. "Current leverage-based capital requirements are outdated and at odds with financial stability and economic growth. Reform is needed quickly to better serve U.S. taxpayers, capital markets, consumers, businesses, and the economy," said Kevin Fromer, the president and CEO of the Financial Services Forum, which represents the nation's largest banks. Regulators have flagged the SLR as meriting reconsideration and are mulling whether to tweak the rule's formula to reduce big banks' burdens or provide relief for extremely safe investments, like Treasury bonds. The debate is driving industry hopes that agencies could as soon as this summer propose an overhaul, according to three sources familiar with the matter. Bank lobby groups, including the Forum and the Bank Policy Institute, which also represents larger banks, have been pushing for the change. Treasury Secretary Scott Bessent told lawmakers last week that a revamp was a "high priority" for the three regulatory bodies charged with the rule: the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. Banks have argued for years that the SLR, established after the 2007-2009 financial crisis, should be reformed. They contend it was meant to serve as a baseline, requiring banks to hold capital against even very safe assets, but has grown over time to become a binding constraint on bank lending. BPI President and CEO Greg Baer called reform "overdue and welcome" in a statement to Reuters. When asked by Congress in February if the leverage requirements discouraged banks from helping intermediate the Treasury market, Fed Chair Jerome Powell agreed, and said it was time to revisit the issue. Such reforms are on a long wishlist the banking industry hopes to advance with the Trump administration, which has made deregulation to spur economic growth a top priority. Spokespeople for the Fed, FDIC and Office of the Comptroller of the Currency, which shares responsibility for the SLR, declined to comment. OPTIONS DEBATED Currently, all banks are required to hold 3% of their capital against their leverage exposure, which is their assets and other off-balance sheet items like derivatives. The largest global banks must hold an extra 2% as well in what is known as the "enhanced supplementary leverage ratio." Regulators could provide relief by simply exempting Treasury bonds and central bank deposits from calculations of the SLR. That is the approach the Fed took when it provided temporary emergency relief during the COVID-19 pandemic. Or, in what three industry sources believe is a more likely option, they could look at tweaking the "enhanced" SLR, which instead of exempting Treasuries broadly refines the formula, resulting in a lower ratio. Regulators tried to ease that requirement in 2018, during President Donald Trump's first term in the White House, setting the extra capital based on a bank's specific risk profile, but it ultimately failed to advance. The largest banks, which are also the most prominent Treasury market participants, would stand to benefit most directly from the second option. Banks hope any leverage relief coincides with a broader push to overhaul other capital requirements, including the so-called "GSIB surcharge" applied to the largest, most complex banks, and an ongoing effort to overhaul annual "stress tests" of big bank finances. While discussing quarterly earnings last month, several bank executives touted SLR reform alongside other capital relief. "The SLR requires us to hold capital to level against riskless assets and Treasuries and cash; that doesn't make a lot of sense," Bank of America CEO Brian Moynihan said in April. Proponents of the SLR argue it is critical to have a tool that is blind to risk as a key backstop, and a simple, direct requirement on leverage can help ensure no dangers are overlooked. But such relief could potentially lend more liquidity to Treasury markets, which have struggled to function amid periods of intense stress. The $29 trillion Treasury market, a cornerstone of the global financial system, saw an aggressive selloff in April, sending U.S. borrowing costs higher. Market expectations about potential reform helped push the spread of swap rates over Treasuries higher in recent months, as Trump's victory in the November 5 presidential election fueled hopes of broader deregulation in financial markets. Swap spreads, which reflect the gap between the fixed rate on an interest rate swap and the yield on a comparable Treasury security, are often used to hedge or bet on shifts in rates. They tightened dramatically, however, during the bond selloff that followed Trump's April 2 "Liberation Day" tariff announcement. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
11-05-2025
- Business
- Time of India
TD Bank closing dozens of branches across US, check the full list and why you shouldn't worry
TD Bank is planning to close nearly 40 branches across the United States — but if you're a customer, there's no need to panic. Despite the downsizing, the bank reassures that it remains committed to serving its clients with expanded digital services and alternative locations. #Operation Sindoor India responds to Pak's ceasefire violation; All that happened India-Pakistan ceasefire reactions: Who said what Punjab's hopes for normalcy dimmed by fresh violations The closures are expected to occur by June 5 and affect branches across several states, including New York, Florida, New Jersey, and Pennsylvania. According to filings with the Office of the Comptroller of the Currency (OCC), this is part of a larger trend of traditional banks adjusting to changing customer habits, including the widespread shift toward online and mobile banking. What's closing and where? A total of 39 TD Bank locations are set to be shut down. Among the most affected states are: New York: 12 branches New Jersey: 8 branches Florida: 6 branches Pennsylvania: 4 branches Other closures are spread across states like Massachusetts, South Carolina, Connecticut, and Washington, D.C. Live Events Why the closures? TD Bank, like many others, is responding to the evolving way people manage their money. With more customers using mobile apps and online platforms for everyday banking, the need for brick-and-mortar locations has decreased. The bank emphasized that these decisions are part of a strategic effort to streamline services and focus on areas of higher demand. Despite the cuts, TD Bank customers will still have access to over 1,100 branches and more than 2,600 ATMs across the country. Additionally, digital banking tools remain available 24/7, and customer support continues via phone and online. A spokesperson for the bank noted that TD remains committed to providing reliable and convenient banking services, whether in person or digitally: 'We continually evaluate our store network to make sure we are meeting the needs of our customers and positioning ourselves for future growth.' What should you do? If your local branch is affected, TD Bank will notify you well in advance and help you transition your services to the nearest available location or online platform. Customers are encouraged to use the TD mobile app or website, or call customer service for assistance. In short, while some physical branches are shutting down, your access to TD Bank's services isn't going anywhere. The bank is just shifting with the times — and making sure you can bank anytime, anywhere.
Yahoo
08-05-2025
- Business
- Yahoo
Santander closing 18 US branches by August
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Santander notified the Office of the Comptroller of the Currency last week that it would be closing 18 U.S. branches by August, the regulator's website shows. The affected branches, which comprise 4.5% of the Spanish bank's roughly 400 U.S. locations, are strewn throughout the Northeast and are set to close between July 31 and Aug. 21. Six locations in Massachusetts will close, as well as four in New Jersey, four in Pennsylvania, two in New York and one each in New Hampshire and Rhode Island. 'Santander Bank continues to refine its branch footprint and retail presence, including introducing new formats and investing in digital capabilities to better accommodate our customers and meet their evolving needs,' a spokesperson told Banking Dive. Santander's U.S. digital bank Openbank, which launched in October, is on the rise. In February, the platform hit $2 billion in deposits, the bank announced. 'Our aim is to become a national, digital bank with branches and reaching this deposit milestone at record pace is a testament to our customer-obsessed mindset, commitment to innovation, and global connectivity,' Swati Bhatia, head of retail banking, said at the time. 'We are uniquely positioned to provide U.S. consumers with the digital banking experience of a FinTech and the strength and stability of a leading global bank.' The closure plan follows 95 branch closures in the U.K., announced in March and set to take place in June. A bank spokesperson attributed the U.K. closures to 'a rapid movement of customers choosing to do their banking digitally,' according to the BBC. The industry's de-emphasis on branch banking and shift toward digital banking has been in the works for several years. The pace of branch closures in the U.S. ticked upward in the first quarter of 2025, according to S&P Global, led by 50 net branch closures for U.S. Bank and 23 net branch closures for Wells Fargo. Flagstar had 16 net closures in the first quarter, and has planned 60 for the year. Dozens of other closures are slated for the upcoming months, including 38 TD branches to be shuttered by June 5. Recommended Reading Ally CEO to step down
Finextra
08-05-2025
- Business
- Finextra
OCC latest US regulator to give banks crypto freedom
The Office of the Comptroller of the Currency (OCC) today clarified permissible bank activities related to crypto-asset custody and execution services. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. The OCC published Interpretive Letter 1184 to confirm that national banks and federal savings associations may buy and sell assets held in custody at the customer's direction and are permitted to outsource to third parties bank-permissible crypto-asset activities, including custody and execution services, subject to appropriate third-party risk management practices. This authority was also addressed in OCC Interpretive Letters 1170 and 1183. As with any activity, a bank must conduct crypto-asset custody activities, including via a sub-custodian, in a safe and sound manner and in compliance with applicable law.
