I have been watching the market carefully for 16 months now expected the downturn and prepared for it.
However, I did not expect TD bank engaging in risky bets on Wall streets, but apparently short sellers saw this Canadian ship headed straight to an iceberg.
With roughly $1.26 trillion in assets, TD Bank would certainly be considered too big to fail.
What if short sellers are right will and can the Canadian people able to bail them out ?
Of course TD bank is telling customers & the market they are fully funded , deposits are secure etc.
Recall SVB, First Republic, Credit Suisse said the same to the market right until (11th hour) their eminent collapse.
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I am hoping TD Bank find a way to sort itself out. Canada has one of the highest cost of living, & hidden poverty squeezing the middle class.
The last thing the tax payer need now is bailing out a fat cat that got too careless & greedy for its own sake !
Also with such potential massive exposure can RBC or any other Canadian banks be able to save them ?
The American investors will pass on the Canadian side of the business,
but may be interested in buying the US business side of the bank for pennies on the dollar.
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Check out this article for more TD bank woes .
What do you all think is this short sellers hypes or TD Bank is in serious troubles ?