Settlement Reached: TD Bank to Pay Over US$28M for Market Manipulation

October 1, 2024 TruthUSA

TD Bank Group has agreed to pay over US$28 million following an investigation into manipulation of the U.S. Treasuries market by one of its traders.

The deferred prosecution agreement with the U.S. Department of Justice requires TD to acknowledge that a former employee manipulated the market by placing and canceling bids or offers to create a false appearance of supply or demand.

It is stated in the agreement that hundreds of spoof orders were placed, totaling tens of billions of dollars in false supply and demand, with the aim of artificially inflating market prices of those products.

Simultaneously, TD is expected to settle an investigation related to deficiencies in its anti-money laundering program, which the bank estimates will cost it more than US$3 billion.

Under the spoofing case agreement, TD will pay around US$12.6 million in civil penalties, face US$9.4 million in criminal penalties (the statutory maximum), pay US$4.7 million in victim compensation, and surrender US$1.4 million.

TD emphasizes its commitment to taking regulatory and employee conduct violations seriously, stating that it reported and terminated the employee involved, and has since strengthened its monitoring and compliance capabilities.