TD Bank Takes Risky Bet as Biggest Bank Short with $3.7 Billion at Stake

Short sellers have increased their bearish bets against Toronto-Dominion Bank, making it the biggest short in the banking industry globally with roughly $3.7 billion on the line. This is partly due to general skittishness towards the banking sector and concerns about TD's exposure to Canada's housing slowdown and its ties to the US market through its stake in Charles Schwab Corp. TD's position atop the list of biggest bank shorts comes as it seeks to close a $13.4 billion deal for First Horizon Corp.