The Toronto-Dominion Bank's (TD) Q4 results reflect an increase in revenues and higher provisions. Lower expenses acted as a tailwind.
Royal Bank of Canada (RY) fourth-quarter fiscal 2017 (ended Oct 31, 2017) results impress on higher revenues and lower provisions.
TD Ameritrade (AMTD) reported average client trades per day of 680,000 in its activity report for October 2017, up 19% from the prior-month tally and 55% from the year-ago period.
A brewing battle over the bank records of the private investigation firm that commissioned the so-called "Trump dossier" could become the first legal test for the Congressional investigations into alleged Russian interference in the 2016 presidential race.Fusion GPS is asking a federal judge in Washington for a restraining order to block the House Intelligence Committee from obtaining the firm's bank records, arguing that turning over the records would violate the First Amendment and poses an "existential threat" to the company.While there are various lawsuits pending over publication and distribution of the dossier and news outlets have brought Freedom of Information Act cases over how the U.S. government responded to that and other Russia-related allegations, Fusion's suit to block the House intelligence panel's subpoena appears to be the first direct challenge to the authority and legitimacy of one of the Congressional probes.Fusion and its role in producing the dossier, prepared by former British Intelligence officer Christopher Steele, have been a particular focus of GOP investigators on Capitol Hill. Republicans say they're suspicious of how the document was created, in particular due to Fusion's work for opponents of sanctions on Russia known as the Magnitsky Act.However, Fusion—founded by former Wall Street Journal reporters Glenn Simpson, Peter Fritsch and Thomas Catan—is arguing that the committee's action threatens the former journalists' First Amendment rights by revealing the identities of various clients who sought political research from the firm."Compliance with this subpoena will in fact do grave and potentially fatal damage to Plaintiff as a going concern and will chill the First Amendment rights of Plaintiff and many others engaging in opposition research on political candidates," Fusion's attorneys said in a court filing Monday. "Individuals and companies must be permitted to conduct confidential opposition research during a political campaign in a free manner without interference from competing campaigns or the government, so that candidates and voters alike can be better informed."Fusion's legal team, recently bolstered by the addition of prominent white-collar defense attorney William Taylor of Zuckerman Spaeder, also argues that the subpoena is unauthorized because House Intelligence Chairman Devin Nunes (R-Calif.) failed to consult with ranking Democrat Adam Schiff (D-Calif.) about the effort and because Nunes is supposed to be recused from the Russia probe. Fusion also complains that the subpoena is overbroad because it seeks all the bank's records about the firm and is not limited to information about who hired the firm to prepare the Trump dossier, a collection of accurate, inaccurate and unproven intelligence reports on President Donald Trump's alleged ties to Russia. The subpoena, signed by Nunes on Oct. 4, requests broad categories of financial records about Fusion dating back to August 2015. The panel's court filings say Nunes issued the subpoena at the request of Rep. Mike Conaway (R-Texas), who has been leading the Russia-focused investigation after Nunes announced in April that he was stepping back from management of the probe.U.S. District Court Judge Tanya Chutkan, an Obama appointee, held a telephone hearing on the temporary restraining order request Friday and has signaled she may do so again Tuesday afternoon.The House panel's move to seek the bank records appears to be an end-run of sorts around roadblocks the committee has encountered elsewhere in its investigation. In response to subpoenas demanding documents and testimony directly, Fusion and its founders have asserted a variety of legal privileges. Last week, Fritsch and Catan appeared before a closed session of the House Intelligence Committee and refused to answer questions, citing privileges including their Fifth Amendment rights against self-incrimination. Simpson testified before a closed Senate Judiciary Committee meeting in August, but is expected to rebuff the intelligence panel during a hearing set for next month.Such privilege assertions are difficult for a Congressional committee to overcome, but by going to Fusion's bank, the panel may be able to get some of the same information with less resistance. The bank involved is not named in public court filings in compliance with an order Chutkan issued Friday. However, the Washington Examiner reported that the subpoena was issued to TD Bank, the American division of Canadian-based Toronto-Dominion Bank. Fusion lawyers asserted in their filing Monday that the bank's identity was leaked by the intelligence panel and is further evidence of why the research firm's confidential information should not be disclosed to the committee.The drive to obtain Fusion's financial data comes as the firm activities are drawing the attention of the president."Workers of firm involved with the discredited and Fake Dossier take the 5th. Who paid for it, Russia, the FBI or the Dems (or all)?” Trump asked on Twitter last week. "Officials behind the now discredited ‘Dossier’ plead the Fifth. Justice Department and/or FBI should immediately release who paid for it."
With an aim to expand healthcare advisory, KeyCorp's (KEY) corporate and investment banking unit, KeyBanc Capital, closes Cain Brothers' buyout.
Given the underlying strength and solid growth prospects, Community Bank System (CBU) stock seems to be a good bet now.
On closing of the Scottrade acquisition, long-term issuer and senior unsecured debt rating of TD Ameritrade Holding Corporation (AMTD) upgraded by Moody's Investors Service.
Toronto Dominion Bank (TD) has decent short-term momentum and is seeing solid activity on the earnings estimate revision front as well.
Credit Suisse (CS) reaches final settlement with MassMutual, as it agrees to pay $79.5 million to resolve claims over sale of mortgage-backed securities.
TD Ameritrade (AMTD) reported an improvement in its operating metrics for August, reflecting higher income.
Federal Reserve Board announces approval of notice by The Toronto-Dominion Bank, TD Group US Holdings LLC, and TD Bank US Holding Company
Federal Reserve Board announces approval of notice by The Toronto-Dominion Bank, TD Group US Holdings LLC, and TD Bank US Holding Company
Москва, 26 июня - "Вести.Экономика". Японские банки более чем вдвое увеличили объем заимствования в долларах с 2007 г., что делает их уязвимыми для финансовых потрясений, таких как те, которые усугубили последний финансовый кризис, предупредил Банк международных расчетов (БМР) в опубликованном в воскресенье сообщении.
Kinder Morgan (KMI) recently raised C$5.5 billion for the controversial Trans Mountain pipeline expansion despite strong opposition.
TD Ameritrade Holding Corporation (AMTD) reported average client trades per day of 514,000 in its activity report for May 2017. The reported figure was up 2% from the prior-month tally and 16% from the year-ago period.
Nordstrom (JWN) revealed plans to extend its existing Canadian loyalty program.
Moodys Slashes Ratings On 6 Canadian Banks, Fears Asset-Quality Deterioration, Soaring Household Debt
Amid Poloz-described "unsustainable prices" in various cities, and just days after the collapse of Canadian mortgage lender Home Capital Group and our discussion of the dire state of Canadian savers (and their record household debt), Moodys has cut the ratings on six of Canada's largest banks because of "ongoing concerns that expanding levels of private-sector debt could weaken asset quality in the future." As a reminder, even Bank of Canada Governor Stephen Poloz noted that Toronto is out control tonight while answering questions following a speech in Mexico City... "pretty sure recent gains in Toronto home prices were not sustainable and that the city’s housing market had elements of speculation" "Financial stability is part of the Bank of Canada’s monetary policy decision making, but the central bank’s primary mission is inflation targeting,... it would be odd to use interest rates to target home prices in just one city." Perhaps Mr. Poloz, but, as we showed previously, it doesn’t take a genius to figure out that this will end in tears. Even the big Canadian banks are fretting. “Let’s drop the pretense. The Toronto housing market and the many cities surrounding it are in a housing bubble,” Bank of Montreal Chief Economist Doug Porter warned clients. But the bubble’s deflation would push the city into a fiscal and financial sinkhole. So that's the supposed 'asset' side, and to show just how bad the debt situation in Canada truly is, here are some more charts which are largely self-explanatory. And perhaps the most important - and troubling - chart of all: And of course the bank run at Home Capital Group... It should hardly be a surprise that Moodys today downgraded the Baseline Credit Assessments (BCAs), the long-term ratings and the Counterparty Risk Assessments (CRAs) of six Canadian banks and their affiliates, reflecting Moody's expectation of a more challenging operating environment for banks in Canada for the remainder of 2017 and beyond, that could lead to a deterioration in the banks' asset quality, and increase their sensitivity to external shocks. The banks affected are: Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Canada, National Bank of Canada, and Royal Bank of Canada. The BCAs, long-term debt and deposit ratings and CRAs of the banks and their affiliates were downgraded by 1 notch, excepting only Toronto-Dominion Bank's CRA, which was affirmed. The short term Prime-1 ratings of the Canadian banks were affirmed. All relevant ratings for these banks continue to have negative outlooks, reflecting the expected introduction of an operational resolution regime in Canada. "Today's downgrade of the Canadian banks reflects our ongoing concerns that expanding levels of private-sector debt could weaken asset quality in the future. Continued growth in Canadian consumer debt and elevated housing prices leaves consumers, and Canadian banks, more vulnerable to downside risks facing the Canadian economy than in the past." said David Beattie, a Moody's Senior Vice President. In the same action, Moody's affirmed the BCAs, long-term ratings and CRAs of CIBC Mellon Trust (CIBC Mellon), the Fédération des caisses Desjardins du Québec (the Fédération) and Caisse centrale Desjardins. In view of today's actions, Moody's does not expect any upward rating pressure on the affected banks in the near term. However, the Canadian banks' ratings could be revised upwards if macro-economic conditions in Canada improve and the Canadian banks maintain sound financial metrics. The affected banks' ratings could be downgraded if their fundamentals weaken, as evidenced by an even more challenging operating environment and/or deterioration in their financial metrics. * * * Here is the full ratings rationale by bank... Moody's considers that weakening credit conditions in Canada -- including an increase in private-sector debt to GDP to 185.0% as of the end of 2016, up from 179.3% for 2015 -- present increasing risk to Canadian banks' asset quality and profitability. This increase has been led by household debt, which is now at a record high of 167.3% of disposable income (as at Q4 2016) and accompanying house price appreciation. Despite macro-prudential measures put into place by Canadian policymakers in recent years -- which have had some success in moderating the rate of housing price growth -- house prices and consumer debt levels remain historically high. Business credit, the other component of private-sector debt, has also grown rapidly, at a 6.2% CAGR over the past 3 years. We do note that the Canadian banks maintain strong buffers in terms of capital and liquidity. However, the resilience of household balance sheets, and consequently bank portfolios, to a serious economic downturn has not been tested at these levels of private sector indebtedness. Toronto-Dominion Bank (TD, Aa2/Aa2 negative, a1); TD's strong ratings are attributable to its very strong domestic retail franchise -- which generates stable and recurring profitability and its business mix. This strength is due to leading market share positions in many personal & commercial financial services products, where TD typically has market shares in the high teens and holds first or second positions. TD is the most retail oriented of its Canadian peers, with approximately 90% of earnings coming from retail (combined Canadian personal & commercial, wealth management and US personal & commercial, excluding corporate). While CM income has increased over recent quarters and capital allocated to the wholesale business is rising, we expect that reliance on this inherently volatile source of income will remain relatively modest. Through acquisition and organic growth, TD has increased its exposure to unsecured Canadian consumer credit risk in recent years. In our view, however, the strength and stability of the earnings from TD's Canadian personal and commercial banking franchise remain the primary credit strength supporting its ratings. The ratings of TD's US affiliates benefit from support from the parent, and as such are also affected by this action. Bank of Montreal (BMO A1/A1 negative, a3); BMO is one of the six major banks in Canada which benefit from the protection of significant barriers to entry and the stability of a prudent regulatory environment. Although its Canadian retail market shares are towards the lower end of the Canadian peer group, BMO has double digit market shares across all significant retail financial services and products, providing scale and recurring earnings power in its home market. In our view, however, the strength and stability of the earnings from BMO's Canadian personal and commercial (P&C) banking franchise remain the primary credit strength supporting its ratings. BMO has a strong and improving US regional banking presence through BMO Harris, which adds important diversification away from reliance on Canadian P&C earnings. However, BMO does not enjoy the same franchise strength and pricing power in the more competitive US market that it does in Canada. The ratings of BMO Harris and affiliates benefit from support from the parent, and as such are also affected by this action. Bank of Nova Scotia (BNS A1/A1 negative, a3); BNS is the most internationally active of the Canadian banks with approximately half of its earnings generated outside of Canada. BNS has taken significant measures to increase its profitability that signal a fundamental shift away from the bank's traditionally low risk appetite. While the bank's strategic actions are intended to enhance current profitability -- in 2016, BNS reported domestic net interest margin lower than the six largest Canadian banks' average- in our view, they increase the prospect of future incremental credit losses. While BNS had strategically grown its credit card and auto finance portfolios - both of which are particularly prone to deterioration during an economic downturn and exhibit higher defaults and loss severities than mortgage portfolios -- in recent years, growth in 2016 was flat. In addition, the bank has made a series of acquisitions away from its strong domestic franchise towards higher-growth but less stable international markets. BNS has aspirations to continue to grow its international earnings, which in Moody's view adds to bondholder risk. Canadian Imperial Bank of Commerce (CIBC A1/A1 negative, a3); CIBC is the most reliant of the Canadian banks on domestic P&C earnings, which generate approximately 65% of total earnings, excluding Corporate. In our view, however, the strength and stability of the earnings from CIBC's Canadian personal and commercial banking franchise remain the primary credit strength supporting its ratings. CIBC has the second lowest proportionate exposure to unsecured and non-real estate secured consumer debt as a percentage of domestic consumer assets (roughly 11.5%), reflective of its very large book of insured mortgages. CIBC is one of the six major banks in Canada that benefit from the protection of significant barriers to entry and the stability of a prudent regulatory environment. Although its Canadian retail market shares are mid-range relative to its Canadian peers, CIBC has solid double digit market shares across all significant retail financial services and products, providing scale and recurring earnings. National Bank of Canada (NBC A1/A1 negative, baa1); NBC's dominant position in commercial banking and strong second place share of market in retail banking in Québec are the primary credit strengths supporting its high ratings. The stability of the recurring earnings power of NBC's regional retail franchise is, in Moody's view, highly unlikely to be challenged. That being said, NBC's asset base (CAD234 billion as of Q1 2017) and national deposit share (roughly 4%) are small relative to the other large Canadian banks whose branch systems are more national in scale. In our view, however, the strength and stability of the earnings from NBC's Canadian personal and commercial banking franchise remain the primary credit strength supporting its ratings. While each of the major Canadian banks enjoys the benefits of superior pricing power due to sustainable large market shares in many significant retail and commercial products and services, this is true for NBC only in the context of its regional market, the province of Québec. As such, the challenges in geographic diversification and earnings stability and the Québec credit concentrations offset partially the strength in local market share and sustainability. NBC is the Canadian bank most reliant upon inherently less stable capital markets earnings, which generated 38% of total earnings, excluding Corporate for 2016 (38% for 2015.) Royal Bank of Canada (RBC A1/A1 negative, a3 ); RBC's ratings reflect its profile as a strong and diversified universal bank with sustainable leading market shares across many retail products and services in its home market. The stable earnings from RBC's domestic Personal and Commercial franchise are a key credit strength. RBC has had very low earnings volatility, supported by the stabilizing effect of the recurring profitability of RBC's solid domestic retail banking franchise. However, over the past four years RBC has demonstrated rapid growth in its Capital Markets business, led by growth in its US corporate loan book and the repo and securities finance business. We believe that RBC's US-focused Capital Markets growth strategy increases its exposure to risks that could more rapidly erode its creditworthiness in volatile or adverse market conditions, and is therefore negative for the credit. To date, this risk has been well managed and its performance has been very stable. Maintaining this performance through more volatile markets will be key to RBC's longer term risk management track record. We do not expect that this business will continue on this growth trajectory, and, in fact, that capital committed to the Capital Markets business will be more constrained. Management plans to substantially grow the earnings of its recently acquired, California-based private and commercial bank, City National Bank, (deposits Aa3 stable, a2) both organically and through targeted acquisitions. Growth in the City National business presents less credit risk than continued growth in the Capital Markets area, in our view. The ratings of two affiliates, RBC Capital Markets LLC and RBC (Barbados) Trading Bank Corporation were also affected by this action. In each case, both long and short term ratings were downgraded. Fédération des caisses Desjardins du Québec (Aa2/Aa2 negative, a1 ); The Fédération is a cooperative entity responsible for governance and oversight activities for Desjardins Group (the Group). It acts as a control and supervisory body over the individual member caisses. The Fédération's pivotal importance to the Group's operations and performance, the application of regulatory supervision to the Group as a whole, as well as the strong strategic and financial cohesion among member caisses with a well-developed mutualist support framework, lead us to factor the strength of the Group into the Fédération's BCA. The Group has a secure retail banking franchise in rural Québec as well as strong capitalization and limited reliance on wholesale funding. Its regional banking concentration in Québec is offset in part by the Group's national insurance and wealth management business. The Fédération's ratings were affirmed despite the Macro Profile change because Moody's believes its operations to be largely isolated to the province of Quebec (which has experienced lower house price appreciation than other provinces) and because a large proportion of Desjardins' net income is derived from non-banking sources, such as life and property and casualty insurance. CIBC Mellon Trust (CIBC Mellon A1/A1 stable, a1); CIBC Mellon is a major player in the Canadian custody market, underpinning its franchise value. The operations and technology platform provided by BNY Mellon lends a further competitive advantage. BNY Mellon is the largest custodian, globally, and its operating platform allows CIBC Mellon to benefit from economies of scale and service not available to its primary domestic competitor. CIBC Mellon's risk management and control environment is strong, with an appropriate emphasis on operational risk issues and effective supervision by the joint venture's owners. CMT does not make loans (other than short-term overdrafts to custody clients) but incurs credit risk through its securities portfolio. The investment portfolio is made up largely of short-duration Canadian government and provincial bonds as well as corporate debt. CIBC Mellon's ratings were affirmed despite the change in the Macro Profile because Moody's believes its custody bank business model is directly unaffected by high consumer debt as it does not lend to consumers.
Omaha, NE-based online brokerage firm, TD Ameritrade Holding Corporation (AMTD) reported average client trades per day of 502,000 in its activity report for Apr 2017. The reported figure was flat with the prior-month tally and increased 7% from the year-ago period.