WSJ: First Horizon-TD Bank Deal Stalled Over AML Concerns

The Wall Street Journal says that the $13.4 billion deal for TD Bank to buy US bank First Horizon fell through because regulators were worried about the Canadian bank’s anti-money laundering (AML) methods.

Last week, TD backed out of buying First Horizon, saying that regulators made them do it. The deal was first talked about in February 2022, but it was put off more than once.

Reports said that the delays were caused by worries that TD could become too powerful in the US market, but the WSJ says that there were other worries.

The Federal Reserve and the Office of the Comptroller of the Currency have raised concerns about how TD Bank handles unusual transactions and how quickly it reports suspicious behavior to them, the Journal reports, citing sources.