Schwab Stock Falls. It’s Getting Hit by TD Bank’s Plans to Sell Stake.

TD Bank Group announced it plans to sell its equity investment in Charles Schwab through a registered offering and share repurchase. Currently, TD Bank holds 184.7 million shares, or a 10.1% economic ownership, of Schwab’s common stock, and the brokerage giant has agreed to repurchase $1.5 billion of its shares from the bank when the offering is completed. “As part of our strategic review, we have been evaluating capital allocation and have made the decision to exit our Schwab investment,” TD Bank CEO Raymond Chun said in a statement.