• Dec 22, 2010
Toronto Dominion Bank has officially agreed to acquire Cerberus Capital Management, the current owner of the Pentastar's lending arm, will receive $6.3 billion from TD Bank in the deal. That figure marks a $900 million loss compared to the $7.4 billion that Cerberus paid for Chrysler financial in 2007 as part of the automaker's takeover. Since then, Cerberus has been forced to hand the reins to the federal government as part of the bailout of 2008, and analysts from The Washington Post and Reuters feel that the capital firm is simply looking to be able to return some of the money that it lost on the Chrysler adventure to investors.
Meanwhile, Toronto-Dominion Bank continues to push its way into the American market. The bank already has 1,300 branches on our shores, and the new acquisition of Chrysler Financial will make the company one of America's largest auto lenders overnight. TD Bank says that it anticipates auto lending to grow from a $700 billion business right now to over $900 billion in just three short years. With Chrysler's ever-improving stable of products, if true, that likely means that the bank will see cash start rolling through its doors in a big way. Thanks to everyone for the tips!

[Sources: The Washington Post, Reuters]


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    • 1 Second Ago
  • 17 Comments
      • 4 Years Ago
      I wonder if this will in anyway benefit TD bank users like me.

      I do all my banking with them, I'm still a student but I'll be graduating within the next 2 years, if incentives start coming over our way then I can definitely see myself purchasing a new Dodge Charger or a Jeep Grand Cherokee.

      Time will tell I guess.
        • 4 Years Ago
        The deal won't benefit TD customers, particularly customers of TD Bank.

        It will, however, benefit management, VPs, Board members, and CEOs.
      • 4 Years Ago
      7.4 billion minus 6.3 billion = 1.1 billion, not 900 million.
        • 4 Years Ago
        Autoblog can't subtract, lol.
      • 4 Years Ago
      TD: "Chrysler... I see your 0% financing and I RAISE YOU... later hours...."

      (Only people who are residents of Canada may understand this joke)
        • 4 Years Ago
        And even then, it's not funny.
      • 4 Years Ago
      Isn't it unfair that Canadian banks can operate in the USA, but US banks can't operate in Canada? I guess I'm on the better side of this deal since I live in Canada.
        • 4 Years Ago
        American banks do operate in Canada. They just aren't involved in daily banking, much like they aren't all too involved in daily banking in the States either. Most small banks in the US are owned by Canadian banks.
        • 4 Years Ago
        how are you in the better side of this deal? you get less options and therefore less competition and therefore higher fees and lower interest on savings...
        • 4 Years Ago
        @ schneider

        Bazinga as Sheldon would say.
        • 4 Years Ago
        US banks can't operate in the US.............
      • 4 Years Ago
      The biggest mistake here isn't that Autoblog can't add. It's that Autoblog didn't do it's research. There isn't a Toronto Dominion bank anymore. There's TD Price Cooper Waterhouse, often called TD Waterhouse, which is the investment arm or TD Canada Trust which is the daily banking arm. Toronto Dominion stopped existing when it and Canada Trust merged.
        • 4 Years Ago
        You're wrong as well. TD Waterhouse is not the same as "TD Bank", which is the operating name of the banking arm in the USA.

        Yes, in Canada it's "TD Canada Trust" and in the USA it's "TD Bank". TD Waterhouse is the name of the financial planning arm of TD.

        Furthermore, telling people that TD stands for (stood for, if you must be that pedantic) "Toronto-Dominion" is useful and informative, because many, many people don't know that. Sure, older Canadians all know it, but in the USA, TD Bank is only on the East Coast, and even then, not in many East Coast states, and completely unknown to the rest of the country, under any naming scheme.

        Thus, this article is just fine. It's you that seem to be less than up-to-speed.
      • 4 Years Ago
      "Meanwhile, Toronto-Dominion Bank continues to push its way into the American market. The bank already has 1,300 branches on our shores"

      Meanwhile, most of our shores remain the same as Canada's shores, and for the most part there is no shore at all between us, unless you're sitting in Detroit wondering why it looks so much greener over on their shore all the time aside from the lower drinking age and imported beers we can't get on our shores. (now just substitute 'meow' and I did it)

        • 4 Years Ago
        It's greener because they're farther south and therefore warmer. ;)
      • 4 Years Ago
      Chrysler uses Ally Financial (GMAC with a new name). Chrysler Financial is used cars and old Chrysler loans I believe?
        • 4 Years Ago
        Absolutely correct on Chrysler being under Ally Financial (thanks to Cerberus' gerrymandering), so Chrysler the car company has nothing to do these days with Chrysler Financial, and neither group is affiliated with the Chrysler Building in Manhattan, though there's still something of a tie to the Feds until the loans get paid off.

        As for what Chrysler Financial handles these days? I'm having a hard time getting a straight answer from anyone directly involved with them.
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