An Acquisition Of 2014 Ceo Ed Clark Retired And Bharat...

In the beginning of 2014 CEO Ed Clark retired and Bharat Masrani took over in the position. Since Masrani took position there was an acquisition of CIBC’s Aeroplan credit card accounts. TD bought approximately 50% of CIBC’s existing Aeroplan credit card portfolio totaling around 540,000 accounts. The outstanding balance on the accounts was $3.3 Billion with a fair value of $3.2 Billion (PWC 2015, 33). They also disposed of capital markets, investment banking, and corporate banking products and services. This includes underwriting and helping to distribute new debt or equity issues to the public (TD 2014, 25). In 2014, in Canadian retail, the bank’s revenue totaled to $19,161,000,000 with a significant portion of that comhat has†¦show more content†¦TD Bank expectation for interest rate risk is to ensure that earnings are stable and predictable over time (TD 2014, 86). The bank adopted a disciplined hedging approach to manage the net interest income from assets and liabilities. The key aspects of this approach are as follows, â€Å"evaluating and managing the impact of rising or falling interest rates on net interest income and economic value, and developing strategies to manage overall sensitivity to rates across varying interest rate scenarios, measuring the contribution of each TD product on a risk-adjusted, fully-hedged basis, including the impact of financial options such as mortgage commitments that are granted to customers and, developing and implementing strategies to stabilize net interest income from all retail banking products (TD 2014, 86). â€Å"The bank becomes exposed to interest rate risk when their assets and liability principal and interest cash flows have different interest payments or maturity dates† (TD 2014, 86). This is called mismatched positions The bank uses derivatives such as wholesale, funding, other capital market alternatives, and product pricing strategies to manage their interest rate risk (TD 2014, 87). Variations in the interest rate risk changes the balance sheet significantly as assets and liabilities are very sensitive towards these changes. (TD 2014, 154) This chart shows what happens to fair value of