Toronto-Dominion Bank (TD) has announced plans to fully divest its equity investment in U.S. financial services company Charles Schwab, the two firms confirmed on Monday.
TD currently holds 184.7 million shares of Schwab’s common stock, valued at approximately $15.36 billion based on the most recent closing price. Following the news, Charles Schwab’s shares dropped 3% in premarket trading.
The Canadian bank has been navigating regulatory challenges and, in December, warned of a difficult 2025. It suspended its medium-term earnings forecast as it works through an anti-money laundering remediation program following a U.S. regulatory probe. TD also initiated a broader strategic review.
“As part of our strategic review, we have been evaluating capital allocation and have made the decision to exit our Schwab investment,” said TD CEO Raymond Chun.
TD has faced legal and regulatory hurdles in recent months. In October, it became the largest U.S. bank in history to plead guilty to violating a federal anti-money laundering law, agreeing to pay over $3 billion in penalties.
TD currently holds a 10.1% stake in Schwab, making it the company’s largest shareholder. The investment stems from Schwab’s $26 billion acquisition of TD Ameritrade in 2020.