Months after being hit with the biggest money laundering penalty ever given to a bank operating in the U.S., Canada’s second-largest bank by assets is shuffling its top brass.
Driving the news: According to the Globe and Mail, incoming CEO Raymond Chun will take over TD Bank’s top job on February 1, two months ahead of schedule, as the bank caves to external pressures to expedite leadership changes and get a turnaround plan put in place.
- In addition to ousting CEO Bharat Masrani, TD has limited the time a director can sit on its board, a move that will open up five seats held by long-standing members.
- Forty-one executives, many in roles that would have direct oversight on money laundering controls, have also seen their compensation cut by about $30 million.
Why it matters: TD still has a long road ahead to fix its operations and reputation after an investigation by the U.S. Department of Justice found it made its services “convenient” for criminals, resulting in US$671 million in suspicious trades that should have been reported.