In 2024, TD Bank pled guilty to both civil and criminal charges related to conspiring to violate the Bank Secrecy Act in connection with money laundering. Under the terms of the agreement with U.S. authorities, TD Bank paid a $1.8 billion criminal penalty. When combined with previously imposed civil fines of $1.2 billion, the total financial penalty reached $3 billion. As part of the settlement, TD Bank agreed to enhance its transaction monitoring systems, increase staffing in its compliance division by 25 percent and submit to independent audits over the next three years. The size of the penalty marks one of the largest ever in this enforcement area and has triggered a review of TD’s risk management practices by investors and rating agencies alike.

Jeffrey Solomon, vice chair of TD Bank U.S., told CNBC’s Squawk on the Street that the Federal Reserve is now in an ‘easing’ mode—shifting from rate hikes to rate cuts. Solomon noted that since the Fed’s pivot announcement in December, U.S. equities have rallied approximately 12 percent and GDP growth forecasts have been revised upward to 2.8 percent for 2025. He highlighted that futures markets currently price in roughly 50 basis points of rate reductions by the end of this year, with a 65 percent probability of at least one 25 basis‐point cut by September, according to the CME FedWatch Tool. Solomon warned, however, that credit quality in commercial real estate remains a concern and urged investors to monitor bank loan portfolios closely.