**TD Securities Celebrates Merger Success Amid Internal Tensions**
**Meta Description:** TD Securities’ recent merger with Cowen Inc. brings growth and challenges, as employees voice concerns over the shift in focus and morale.
**URL Slug:** td-securities-merger-challenges
**TD Securities Celebrates Merger Success Amid Internal Tensions**
In June, hundreds of managing directors from TD Securities convened at the Encore hotel with a view of Boston Harbor, creating a festive atmosphere. However, beneath the surface, some employees expressed dissatisfaction. The upbeat mood stemmed from the recent completion of Toronto-Dominion Bank’s acquisition of New York investment bank Cowen Inc., which had cleared its final legal challenges earlier this year, enabling traders from both firms to collaborate in person for the first time.
This gathering also marked the debut of TD Securities head Tim Wiggan’s vision alongside his newly appointed leadership team, including Dan Charney, head of global markets, and Larry Wieseneck, who oversees corporate and investment banking. Both Charney and Wieseneck, former Cowen executives, aim to transform TD into a formidable competitor against Wall Street giants. However, their rise has led some Canadian employees to feel sidelined by Toronto-Dominion’s renewed focus on the U.S. market.
With the integration of Cowen now complete, TD Securities is poised to aggressively pursue capital-markets business, particularly in U.S. convertibles and Canadian cash equities. Yet, this shift has sparked internal discord, with some staff feeling that the Canadian division has become an afterthought, impacting their roles and compensation. A dozen current and former employees shared their experiences with Bloomberg News, requesting anonymity due to the sensitive nature of the discussions.
Wiggan, who has been with TD for over 20 years, maintains that the firm’s structure is designed to be global and disagrees with claims of a takeover by former Cowen staff. He emphasized the importance of retaining top talent, regardless of their location, stating, “It’s in everyone’s interest to make sure that the best and brightest get those opportunities.”
Following a money-laundering scandal that imposed growth restrictions on Toronto-Dominion’s American retail operations, the success of the capital-markets unit has become increasingly vital. Revenue has surged, exceeding C$2 billion in each of the past three quarters and surpassing initial executive targets. During Toronto-Dominion’s recent investor day, CEO Raymond Chun highlighted the “tremendous upside” for TD Securities, with plans to enhance its adjusted return on equity to approximately 13% by fiscal 2029, up from about 9% last year.
**Low Morale Among TD Traders**
TD traders are now situated on a floor in One Vanderbilt, a towering skyscraper above Grand Central Terminal in Manhattan. This space is home to a mix of long-standing TD staff, Cowen equities traders, and new hires from firms like Bank of America and Goldman Sachs. Some of these new employees were previously unaware of the Canadian firm before the merger but were attracted to join due to the opportunities presented.
As TD Securities navigates its post-merger landscape, the balance between growth and employee morale will be crucial for its future success.
**FAQ**
**What challenges is TD Securities facing after its merger with Cowen?**
TD Securities is experiencing internal tensions as some employees feel overlooked due to the firm’s increased focus on the U.S. market, despite the overall success and growth following the merger.
