Canadian banks felt the tremors of the U.S. bank collapse, with TD Bank witnessing the biggest hit. Should you be worried about the bank? The post Should You Be Worried About TD Bank Stock? appeared first on The Motley Fool Canada.
Recently, Toronto-Dominion Bank (NYSE: TD) revealed that it would not be able to obtain all necessary regulatory approvals in order to complete its planned acquisition of First Horizon (NYSE: FHN) before the two banks' merger agreement expires in May. TD and First Horizon already had to extend their merger agreement from February until May and now will need to do so again, which suggests that it's been harder than expected to receive regulatory approval. Since the Biden administration took over, the Federal Reserve and other banking agencies have seemingly taken a much stricter approach to bank acquisitions and mergers.
Shares of the roughly $80-billion-asset, Tennessee-based regional bank First Horizon (NYSE: FHN) plunged more than 26% in premarket trading before recouping a good chunk of those losses. The move came after First Horizon disclosed in a regulatory filing that Toronto-Dominion Bank (NYSE: TD) would not be able to complete its previously announced acquisition of First Horizon by the anticipated closing date of May 27. Shares of First Horizon traded more than 15% down as of 10:11 a.m. ET.