TD Bank buys Chrysler Financial for $6.3 billion

Trevor Hofmann - CAP staff
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The new owner of Chrysler Financial is Canada's own Toronto Dominion Bank (TD), purchased from Cerberus Capital Management for $6.3 billion.

The gain for TD is Cerberus' loss to the tune of $900 billion compared to the $7.4 billion the New York-based acquisition and management firm paid for the automaker's financial arm in 2007 as part of taking over Chrysler. Cerberus has reportedly lost more due to costs associated with acquiring U.S. federal government loans in 2008, but according to the Washington Post and Reuters, chose to return some money to investors by dumping the asset.

TD's acquisition immediately makes it one of the largest auto lenders in the U.S., giving it greater strength as it grows out its U.S. division beyond the 1,300 branches it currently manages south of the 49th.

TD says that it anticipates the auto-lending sector to grow from the current $700 billion to more than $900 billion over the next three years, and the timing for the purchase couldn't be better now that Chrysler is in more capable hands, Canadian-born Sergio Marchionne at the helm and a bevy of new and significantly upgraded products about to hit the market.

©(Copyright Canadian Auto Press)

Topics: Chrysler, Toronto Dominion Bank, TD Bank, Cerberus Capital Management,

Organizations: TD Bank, Chrysler Financial, Toronto Dominion Bank

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