Cdn Banks Target Sub-prime Lenders

BMO Nesbitt Burns, 17 February 2006� TD Bank announced yesterday that it has entered into an agreement to acquire VFC, a financial institution in the sub-prime, used auto lending market. The transaction value is $326 million�just under four times tangible book value.� For this deal to be successful, the people and the processes put in place to originate loans at VFC are crucial. We believe that