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Ed Clark, chief of TD Bank, the Toronto giant that plastered its name and green-and-black logo on former Commerce Bank branches last weekend, tells CNBC how Canadian banks avoided U.S. home-loan problems.
by Joseph N. DiStefano Published Nov. 13, 2008, 10:26 a.m. ET
Ed Clark, chief of TD Bank, the Toronto giant that plastered its green-and-black signs on its former Commerce Bank branches around Philadelphia and New York last weekend, tells CNBC's Maria Bartiromo what he expects from the merger -- and why Canadian banks avoided U.S. problems, enabling his company to grow in Philadelphia and other U.S. markets. Excerpts: At ex-Commerce, "The first thing to do is to make the merger work. We're launching America's Most Convenient Bank...What was great about Commerce is they owned the convenience-service space. We want to reserve and build that model." Will he buy more banks? "We could do further acquisitions, but in this environment I'm not up for taking a lot of asset risk... (Our) business model actually can let us grow organically and take market share every year. So why not just let that business model roll?" Weren't you going to buy troubled Washington Mutual Corp. before JPMorgan Chase & Co. "snapped it up"? "We didn't like the asset risk." As a Canadian bank, you can't get federal TARP money. Don't you need government help? "I would just as soon let the market solve this problem." He added, "There are deep asset problems in many U.S. banks," but it's not a problem for TD: Canadian banks own most of their home loans -- they didn't sell them to rate-crazed, fickle investors, so their values haven't plunged -- and TD even insures its own mortgages, so it's not at the mercy of small, insolvent credit insurers, unlike some U.S. lenders. Still, Clark said he's concerned about the shifts in U.S. financial policy. "It's a bit like running a company: You don't build great franchises by changing your strategy every six months or every year... Give the market tiem to see what's the results of the measures that you've already taken... The most important thing is to restore consumer and investor confidence."
Noah Robertson and Dan Lamothe, Washington Post
Anna Griffin, New York Times
Matthew Choi, Washington Post
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