TD Tumbles as Investors Weigh Long-Term Cost of US Asset Cap (1)

Shares of Toronto-Dominion Bank dropped again on Friday, bringing their two-day decline to almost 10%, after the lender agreed to stiff penalties for allowing financial crimes to take place for years in its US branches.

Canada’s second-largest bank was fined $3.1 billion and hit with a cap on its US retail banking assets after pleading guilty Thursday to a raft of money laundering charges. The stock fell 6% that day and another 4% on Friday, ending the week at C$78.48 in Toronto — the lowest close since Aug. 9.

It was the biggest two-day skid since March 2020, the ...