Finance counsels

Shares of Toronto-Dominion Bank slumped Monday on speculation that the lender had substantial undeclared exposure to the subprime mortgage mess, a notion the bank staunchly denies.

Toronto-Dominion Chief Executive Officer Ed Clark has spent the past few months reminding anybody who will listen that his bank has avoided the subprime debacle, but a rumor swept through the market Monday morning that the bank could have as much as 12 billion Canadian dollars ($11 billion) of exposure through Commerce Bancorp, a U.S. lender that T.D. is acquiring.

However, officials of both banks denied any subprime exposure.

Toronto-Dominion slid 1.46 Canadian dollars, or 2.2 percent, to 65.66 Canadian dollars and touched a six-week low of 65 Canadian dollars .

Toronto-Dominion agreed on Oct payday loans. 2 to pay $8.5 billion for Commerce Bancorp, the largest bank based in New Jersey, in the biggest foreign takeover by a Canadian lender. Commerce posted a $47.9 million third-quarter loss three weeks later and said U.S. regulators are probing transactions by bank officials.
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