UPDATE 3-TD Bank hit by UK derivatives charge; trader leaves
July 5th, 2008 | by admin |(Adds details, background, closing share price)
By Lynne Olver
TORONTO, July 4 (Reuters) - Toronto-Dominion Bank (TD.TO: Quote, Profile, Research, Stock Buzz),Canada’s second-largest bank, said on Friday it will take apretax charge of about C$96 million ($94 million) for themispricing of derivatives by a senior trader who has left theLondon office of its investment dealer unit.
TD Bank said that the charge in its TD Securities unit wastied to credit derivatives that were not properly priced, andsaid the unnamed trader left the bank on June 23.
TD discovered the mispriced credit index swaps the sameday, spokeswoman Simone Philogene said.
The bank said it was cooperating with regulators.
A spokeswoman for Britain’s Financial Services Authoritysaid that it does not comment on individual firms.
TD Bank President and Chief Executive Ed Clark said thebank was “very disappointed” with the loss.
“Our company has a strong risk culture and we deeply regretthis incident. We take this very seriously and will make everyeffort to ensure that this doesn’t happen again.”
