Canadian banks, bolstered by profits per employee 31 percent higher than U.S. lenders, added more than 2,800 workers in the most recent quarter while Bank of America Corp. and Washington Mutual Inc. shed thousands of jobs.
Ally Financial Inc., the largest U.S. auto lender, enlisted Cerberus Capital Management LP’s Lenard Tessler to help oversee turnaround efforts and salvage the government’s $17.2 billion investment, four people with knowledge of the matter said.
Royal Bank of Canada, the nation’s largest lender by assets, is nearing a deal to buy Ally Financial Inc.’s Canadian operations for more than $4 billion, CNBC reported, citing unidentified people familiar with the matter.
The possible sale of ING Groep NV’s Canadian bank, the biggest in the country in 13 years, may spark a bidding contest among the world’s soundest banks including Toronto-Dominion Bank and Bank of Nova Scotia.
Toronto-Dominion Bank, the last publicly traded lender rated Aaa by Moody’s Investors Service, was among six Canadian banks placed on review by the ratings firm, which cited high consumer-debt levels and housing prices.
Royal Bank of Canada, the country’s largest lender, expects “no impact” on its U.S. businesses if the Federal Reserve imposes tougher capital rules for foreign banks, Chief Executive Officer Gordon Nixon said.