A Bank of America logo is seen on the entrance to a Bank of America financial center in New York City, U.S., July 11, 2023. REUTERS
(Reuters) – Bank of America (BAC.N), has agreed to buy a $9 billion portfolio of residential mortgage loans from Toronto-Dominion Bank (TD.TO), a source familiar with the matter said on Friday.
TD did not immediately respond to a request for comment.
The Canadian lender’s CEO Raymond Chun had said at a banking conference in January that the bank would look at exiting some loan portfolios.
In October last year, TD said it would focus on restructuring its balance sheet in fiscal 2025 after it pleaded guilty to violating a U.S. law aimed at preventing money laundering and agreed to pay a combined $3 billion in penalties.
The lender, which had invested in its growth in the U.S. retail market, now must narrow its efforts to comply with a rare asset cap imposed by regulators. Its U.S. business has more than 1,100 branches and nearly 10 million customers, making it the 10th largest bank in the country.
Reporting by Saeed Azhar in New York, Jaiveer Singh Shekhawat in Bengaluru and Nivedita Balu in Toronto; Editing by Shounak Dasgupta
