TD BANK AND COMMERCE BANK ACQUISITON
THROUGHOUT THE FINANCIAL
CRISIS OF 2008
Capital Markets & Fin. Institutions
Abstract
The United States is currently in a recession which began in December 2007 due mainly to mistakes made by the financial sector throughout a span of five years.
While many people think this could be the end for many financial companies especially commercial and investment banks, TD Bank seems to think otherwise. The purpose of this assignment is to illustrate how TD Bank manages to deal with the acquisition of Commerce Bank throughout the turmoil that has occurred in the financial sector of the United States.
While many companies are laying off employees TD Bank appears to be one of the only banks that are hiring and retaining staff. They are able to spend money on operational expenses while other companies have decided to downgrade or consolidate the structure of their company.
In order to meet its new model of “Americas most Convenient Bank” TD has decided to take some of the models that made Commerce Bank so popular by extending hours. This means that there will be more opportunities for jobs, even if they are part time it’s something that the U.S. economy needs in a financial crisis that it’s experiencing now.
Many Analysts believe that raising Capital seems to be one of the only concerns for this bank with the result of this merger. Since TD is a foreign bank it is required to keep federal reserves in two countries both Canada and the United States.
TD has decided to offer new issues of Preferred stock for the public as of November 2008. They are preparing themselves for ...