TD CEO to retire next year, takes responsibility for money laundering failures
Posted Sep 19, 2024 6:47 am.
TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani will retire officially on April 10, 2025, at the bank’s next annual meeting of shareholders after 38 years at the bank and more than a decade as CEO.
“The anti-money laundering challenges we face took place on my watch as CEO and I take full responsibility,” he said in a statement Thursday.
“In the coming months, I will continue to advance and direct the critical remediation program required to meet our obligations and responsibilities and strengthen our risk and control foundation.”
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down next year.
Chun joined TD’s management training program in 1992 and has held increasingly senior roles over the past 32 years.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
The investigation has been a major overhang for the bank and helped scuttle its proposed acquisition of U.S. bank First Horizon Corp. in May last year.
The bank has said the expected resolution of the U.S. investigations will include both monetary penalties, along with non-monetary ones.
TD also announced Thursday that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
Other changes in the executive ranks taking effect Nov. 1 include the promotion of Sona Mehta, currently executive vice-president, real estate secured lending, everyday banking, saving and investing, to become group head, Canadian personal banking, while Tim Wiggan, group head, wealth management and insurance, will become group head, wholesale banking and president and CEO of TD Securities.
Paul Clark, currently executive vice-president, private wealth management and financial planning, will become senior executive vice-president, wealth management.
