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TD CEO Masrani to retire next year, Chun named successor as U.S. probes continue

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TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., said Raymond Chun will replace chief executive Bharat Masrani who is retiring next year.

Chun, who stepped into the role of head of Canadian personal banking last December, will become chief operating officer on Nov. 1 before taking over the top job when Masrani officially steps down on April 10.

The leadership shakeup announced Thursday, which also includes several other executive changes, comes as the bank works to resolve investigations into deficiencies in its anti-money laundering program in the U.S., which allegedly allowed hundreds of millions of dollars of illicit drug profits to flow through the bank.

In announcing his retirement after 38 years at the bank and a decade in charge, Masrani said the shortcomings in the program were his to bear.

“This took place on my watch as CEO and I take full responsibility,” he said on a conference call.

“I will continue to advance and direct the critical remediation program required to meet our obligations and responsibilities and strengthen our risk and control foundation.”

The investigations have been a major overhang for the bank and helped scuttle its proposed US$13.4-billion acquisition of U.S. bank First Horizon Corp. in May last year.

Chun said on the call that remediation is the top priority as the bank looks to write its next chapter.

“TD is a critical part of our financial system and economy … we also have a significant challenge in front of us.”

Some analysts said both the timing and the naming of Chun to the role, who has mostly Canadian experience, was a surprise.

“We believe some investors were open to the possibility of TD selecting an external CEO candidate, one with deep U.S. banking sector experience (and experience with U.S. regulators) given the bank’s (anti-money laundering) issues,” said National Bank analyst Gabriel Dechaine in a note.

The bank has taken more than US$3 billion in charges related to the investigations and has said it expects a global resolution of those probes by the end of the year. But Dechaine said there are worries that regulators will impose financial restrictions on the bank that could stretch well beyond then.

“We note that, aside from regulatory fines, these issues could have long-term operational impacts on TD’s U.S. bank,” he said.

The conference call with analysts turned into something of a job interview for Chun, with questions about what sort of problems he has had to solve, what experience has prepared him for the top job, and why he was the right pick for the role.

Masrani said Chun is the right leader at the right time, while Chun himself said he has a range of experience across business lines.

“Running into complexity, and dealing with regulators and mapping out complex strategies as we move forward has all been sort of in my experience,” Chun said.

The appointment of Chun, who has also served in leadership roles of TD direct investing, insurance and wealth management over his more than three decades at the bank, was seen as a potentially positive sign on the investigations by Canaccord Genuity analyst Matthew Lee.

“The firm was unlikely to appoint a new CEO without a clear road map on an (anti-money laundering) resolution and, as such, the selection of Mr. Chun (who has primarily Canadian experience) may suggest that the firm is comfortable with both its fines and non-monetary penalties,” he said in a note.

TD also announced Thursday that Riaz Ahmed, group head of wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

Other changes in the executive ranks taking effect Nov. 1 include the promotion of Sona Mehta, currently executive vice-president of real estate secured lending, everyday banking, saving and investing, to become group head of Canadian personal banking, while Tim Wiggan, group head of wealth management and insurance, will become group head of wholesale banking and president and CEO of TD Securities.

Paul Clark, currently executive vice-president of private wealth management and financial planning, will become senior executive vice-president of wealth management.

The executive changes were announced as 2,500 members of TD’s senior management gathered in Toronto for their annual conference.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)



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People with diabetes in lower-income areas at higher risk for amputations: report

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TORONTO – The Canadian Institute for Health Information says more than 7,000 people with diabetes undergo a leg, foot or toe amputation every year — and the majority of those procedures could have been prevented.

The report issued today says people with diabetes living in the lowest-income neighbourhoods are three times more likely to have an amputation than those living in the highest-income communities.

It also says people with diabetes living in remote communities are at higher risk of leg amputations than those living in urban centres.

Erin Pichora, CIHI’s program lead for population health, says lack of access to a primary-care provider to help people manage diabetes is one likely factor behind the inequalities.

She says disparities are also likely in access to specialists who can treat diabetic wounds on people’s feet — including podiatrists and chiropodists — before they worsen.

Diabetes Canada says the report shows the importance of ensuring people with diabetes have equitable access to the care and resources they need.

“People living with diabetes who undergo amputations face significant emotional and financial distress,” Laura O’Driscoll, senior manager of policy at Diabetes Canada, said in an emailed statement to The Canadian Press.

“We need to ensure that everyone with diabetes has affordable, timely access to the medications, devices, education, and care needed to manage their condition and prevent complications like amputation.”

The CIHI researchers reviewed hospital records from across Canada for fiscal years 2020-2021 and 2022-2023 and found about 7,720 “lower limb” amputations associated with diabetes per year among people 18 and older.

Each year there were about 3,080 hospitalizations for “above-ankle” leg amputations and 4,640 hospitalizations for “ankle-and-below” amputations, including feet and toes.

This report by The Canadian Press was first published Sept. 26, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

The Canadian Press. All rights reserved.



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Evacuation orders near Grand Forks, B.C., downgraded, but U.S. fire is still a threat

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GRAND FORKS, B.C. – Wildfire officials say an evacuation order for the B.C. southern Interior town of Grand Forks, has been downgraded to an alert, even as an out-of-control wildfire in Washington state surges north and threatens to cross the border.

The Regional District of Kootenay Boundary says residents must be ready to leave at a moment’s notice since the Goosmus wildfire remains a risk to life and safety.

Emergency Info BC says the updated alert, posted late Wednesday, is in place for west of Highway 41 and south of Highway 3, as well as properties west of Highway 3 from Sleepy Hollow Rd to Phoenix Rd.

It is advising everyone under alert to review their emergency plans and stock a grab-and-go bag.

The district says that when necessary, residents should leave via Highway 3, go to the Jack Goddard Memorial Arena in Grand Forks, and wait in their vehicles until the reception centre opens.

The district says if you cannot evacuate at that time, you should call 911.

The BC Wildfire Service dashboard says the fire was discovered Wednesday and is about two square kilometres in size.

Mark Stephens, director of the district’s emergency operations centre, called it “a very fast-moving and developing situation.”

“We ask everyone to stay vigilant and to keep checking the (regional district’s) website for information,” he said in an online statement.

This report by The Canadian Press was first published Sept. 25, 2024.

The Canadian Press. All rights reserved.

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Calgary officers punched, Tasered man at hotel before he died: police watchdog

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Calgary police fired stun guns at a man and punched him in the head before he was put in restraints and died, investigators with Alberta’s police watchdog said Wednesday.

The Alberta Serious Incident Response Team, or ASIRT, said in a release that police were called on Sept. 17 about a man loitering near the check-in desk of the Carriage House Hotel and Conference Centre.

The agency said the man appeared dazed when he was told to leave by an officer. The man tried to pick up items from the floor that weren’t there.

When the officer pointed a Taser at the man, ordering him again to leave, ASIRT said the man raised his hands and started to walk out. He told police: “I don’t want to die.”

“The lone officer tells the male to stop talking and continues to point the weapon at him,” the agency said.

It said two other officers began walking through the main doors toward the man, and he stopped and repeated that he didn’t want to die. The first officer put away his Taser and tried to grab the man.

“At no point during the interaction had the male been identified, nor was he ever told he was being detained or under arrest,” ASIRT said.

It said the man physically resisted the officer and was tackled to the ground by another officer, who then punched the man in the head. At this point, ASIRT said the three officers fought the man for 3 1/2 minutes with “various uses of force.”

The man was put in handcuffs and leg restraints, and a spit mask was placed on his mouth, said ASIRT.

“The male is noted to be bleeding from the mouth and vomits,” the agency said.

It said seven minutes later, the man was sedated by emergency crews and left lying face down. After three more minutes, he was found to be unresponsive.

“The male was then provided medical care but declared deceased at the scene.”

Calgary police said in a release that same day that officers were called to the hotel for a man “acting erratically” in the lobby who was refusing to leave. They said the man wasn’t co-operating and was still being combative after a Taser was pulled out.

Police said the man was pepper-sprayed and taken into custody and shortly after went into medical distress.

A police spokeswoman said Wednesday the three officers involved have been placed on a standard 30-day leave.

“We know there’s a family and a community grieving this loss and our thoughts are with them during this difficult time,” said a statement.

ASIRT, which looks into serious allegations of police misconduct, said its investigation will examine the use of force by the officers.

This report by The Canadian Press was first published Sept. 25, 2024.

— By Aaron Sousa in Edmonton

The Canadian Press. All rights reserved.

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