• Dec 7, 2010
According to Bloomberg, Chrysler Financial may have a new owner in the near future. Canada's Toronto-Dominion Bank may be set to make a deal with Cerberus Capital Management, which still owns the Pentastar's loan arm despite stepping away from its role as owners of Chrysler's carmaking operations. If the sale goes through, Chrysler Financial is expected to go for between $6 billion and $7 billion, which is what the entity is worth not considering liabilities. If Toronto-Dominion lays down that kind of cash, Cerberus will have effectively recouped its money on the venture, allowing the company to return some dividends to investors in the process.
The news comes courtesy of a handful of unnamed sources who say that the deal could still fall through between the Canadian investment group and Cerberus, though they also note that there are other parties interested in Chrysler Financial. Toronto-Dominion is Canada's second largest bank, and the company has been snapping up properties on U.S. soil for awhile now. In fact, the bank now has more branches in the 'Land of the Free' than it does in its home market, and Toronto-Dominion says that it expects to make around $1.6 billion from the U.S. market alone within three years.

[Source: Bloomberg]


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    • 1 Second Ago
  • 16 Comments
      • 4 Years Ago
      This is a perfect example with what is wrong with the business world today.

      Cerberus paid $7B for Chrysler ~3 years ago, but the just the financial part of Chrysler is now rumored to sell for about the same amount of money.

      It goes to show you how companies now don't make money by making "stuff," they make money on the money that they lend you to buy other "stuff." GM has been like that for ages - they made more money on the loan, than they did on the car they just sold you.

      The whole system is whacked.
        • 4 Years Ago
        I am not specifically blaming Detroit - if anything, they at least actually BUILD something. Too many other institutions don't even do that... they make money on other people's money.
      • 4 Years Ago
      At least it's Chrysler Financial and not Chrysler. That'd be a pretty bad investment.
      • 4 Years Ago
      This is only the beginning. Canada has the strongest and most advanced banking system in the world. They advise “teach” countries like the UK, Italy, and many others through Europe and Asia how banking systems should be put in place. Canadian Banks like TD, BMO, CIBC, ROYAL........ Will take over many finical and even commercial assets in the states basically because they can run theses assets 100% better and more efficient than the American banks lol. American banks look at the mess the states are in now with there banks. I think they will be the next ones to sing up for the Canadian school of banking. Lol Canada will take over. if you don’t think so go look at the TD GARDEN in Boston.
        • 4 Years Ago
        @Judy Zik

        You said from "coast to coast," have you been coast to coast? Here in Vancouver, (Canada's 3rd largest metropolitan area) there is none of what you speak of. I live in Vancouver proper, and there are branches from Canada's big 5 + international banks within 5 minutes driving distance from me. Off branded machines are a rare sight, only found in private businesses as the other poster mentioned. In the suburbs such as Coquitlam, Surrey, Richmond; branches for any bank are within 5-15min driving distance. I regularly walk through downtown Vancouver (legitmately urban); bank branches are everywhere, so "However if you take a walk through urban centres..." doesn't hold water.

        Canadian banks are very strong financially especially compared to their competitors in this economic landscape. In fact our banks have capitalized on their foreign competitors' weakness and picked up market share internationally, just look at RBC outright buying the Centura bank, TD purchasing Commerce Bank and Banknorth to create TD Bank in the states. TD is aggressively purchasing and consolidating American banks and soon will crack the top 10 largest banking corporations in the US (already in top 20).
        • 4 Years Ago
        The Canadian government saved the domestic banks from themselves. They campaigned for decades to be allowed to operate the same way as the U.S. banks. The government steadfastly refused to grant most of the concessions they were seeking but as a consolation prize allowed them to openly operate as a cartel and protected them from foreign competition. That made them incredibly profitable and accounts for their current financial strength.
        • 4 Years Ago
        I live in Brantford Ontario Canada thanks.

        All banks in Canada run a credit check when you sign up for an account. Please read the fine print. In fact they have the right to do so from time to time as they see fit based on your banking agreement. The Royal Bank is notorious for turning down lower end customers with bad credit.

        Banks are common in the Subrbs in Canada. However if you take a walk through many urban areas you will find they have disappeared and have been replaced by cheque cashing stores which are sprouting all over. Here in Brantford one particular stretch has 5 of them within sight of each other in an area where the big banks once had branches but have closed them.

        Off brand machines outnumber brand name machines by a vast margin from coast to coast.

        Our banks are no saints or wonder. They are just as bad as everyone else's. As others have stated as well the government saved them from themselves by refusing their requests to lower the requirements for mortgages.
        • 4 Years Ago
        @Judy Zik

        I'm confused whether you're being sarcastic or actually praising Canadian banks. Also, there are definitely bank branch in every suburb. I can count at least 4 within 5 minutes walking distance of my house.
        • 4 Years Ago
        You guys hit the nail on the head as to why the Canadian banking system is as strong as it is... it's basically due to them being regulated and not letting them slip into the mess that is all too common here in the US.

        US companies LOVE to saying that "oh, we'll regulate ourselves... promise!" and then once the government's back is turned, they start tearing down the barriers and safeguards just so they can make an extra buck. It might not always turn into one great big bubble like it recently did, but it never should have gotten to that point if they weren't allowed to pull the kind of crap that they did. That's what's regulation is all about because corporations will do anything - ANYTHING - to make more profit, even if that can cause disastrous results in the end... after all, what does an over-paid executive care if this makes his company collapse? He's got his golden parachute and he can't legally be held accountable for anything. But then who do these company go back crying to when the sht hits the fan? The same government that they didn't want help from to begin with.
      • 4 Years Ago
      Thank goodness it's not evil Bank of America, is all I can say. Good for TD.
      • 4 Years Ago
      That would be good news. Maybe TD would have a better relationship with it's dealers than Cerberus does now. Cerberus has used some strong arm methods that have left dealers in a bad position since they purchased Chrysler Financial. The sooner they are gone, the better.
      • 4 Years Ago
      • 4 Years Ago
      That is why we are where we are.
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