Protest filed over TD Banknorth bid
PORTLAND, ME.—
A consumer advocacy group in New York that tried to derail Toronto Dominion Bank’s takeover of Banknorth Group Inc. said yesterday it is challenging the first acquisition proposed by TD Banknorth.
Inner City Press, based in the Bronx suburb of New York City, said it has filed a 12- page protest with the Federal Reserve Bank over TD Banknorth’s bid for Hudson United Bancorp Inc. of Mahwah, N. J. The $ 1.9 billion ( U. S.) cash and stock deal was announced in July.
In its call for public hearings by the Federal Reserve, Inner City Press claimed that TD Banknorth underserved minority and low- income customers by rejecting their loan applications at disproportionately high rates. The group raised similar issues when it objected to the Canadian bank’s purchase of 51 per cent of Banknorth of Portland, Ore., a regional bank with branches in several northeast states.
“ The fair lending record of TD Banknorth in 2004 is even worse than Banknorth’s was in 2003,” said Matthew Lee, executive director of Inner City.
“ Just because Toronto Dominion wants to expand into the United States doesn’t mean it’s good for consumers and communities, nor that the regulators should approve it.” TD Banknorth spokesman Jeff Nathanson wouldn’t speak on the specifics of the complaint.
Lee, a fair lending crusader, also said Inner City Press’s opposition to the merger reflected concerns over TD’s settlement of Enron- related issues as well as accusations of money laundering involving Hudson United.
Earlier, TD Bank said it raised its contingent reserve by $300 million for a class- action lawsuit over defunct U. S. energy trader Enron Corp. That resulted in a $238 million ( Canadian) aftertax charge in the quarter. The suit, which is pending in Texas, was filed by Enron’s shareholders.
In addition, TD said it agreed to pay $ 138 million ( U. S.) to settle its Enron “ megaclaims” lawsuit but denied any wrongdoing or liability in the former Houston energy giant’s collapse two years ago.