Q: Following up on all the other TD questions today on the US penalties....do you think the future looks more like Wells Fargo when their growth was curbed (and it proceeded to lag for many years)? Or would you be a buyer now based on the recent underperformance and the known outcome (penalties). Bottom line...buy/sell/hold?
5i Research Answer:
We have comments posted today; the asset cap will certainly slow US growth, but the company can make acquisitions and grow elsewhere. It is debatable, but we do not see the issues at TD as systemic as they were at WFC.