UPDATE 2-TD Bank close to Chrysler Financial deal-source

* Canadian bank expected to pay $6.3 bln for co -source

* Cerberus would retain C$1 bln in assets -WSJ

* TD, Cerberus decline comment
(Changes sourcing, adds NEW YORK dateline, background)

NEW YORK/TORONTO, Dec 20 (BestGrowthStock) – Toronto-Dominion Bank
(TD.TO: ) is close to an agreement to buy Chrysler Financial from
private equity firm Cerberus Capital Management [CBS.UL] for
$6.3 billion, a source familiar with the matter said on
Monday.

A deal for the lender could be announced as soon as
Tuesday, the source said.

A deal would help Cerberus recoup a big chunk of its
disastrous $7.4 billion purchase of Chrysler Group, the
automaker. It would also help TD, Canada’s No. 2 bank, add to
its extensive U.S. East Coast assets.

Cerberus, which is led by co-founder Stephen Feinberg,
would retain about $1 billion in assets as part of the deal,
the Wall Street Journal reported separately.

TD and Cerberus declined to comment.

Chrysler Financial, the former lending arm of the
automaker, had its operations reduced as part of a U.S.
government-sponsored restructuring of Chrysler and General
Motors (GM.N: ) last year.

Cerberus, which bought Chrysler in 2007, lost control of
the automaker during its restructuring. It held on to the
financing company.

Ally Financial Inc, the auto and mortgage lender formerly
known as GMAC, took over some of the unit’s operations in
connection with the restructuring.

The deal would be the latest in a series of foreign asset
purchases by big Canadian banks, which exited the financial
crisis in stronger shape than most rivals, and have been
seeking to capitalize by buying up assets.

Last week, Canada’s Bank of Montreal (BMO.TO: ) agreed to buy
troubled Wisconsin lender Marshall & Ilsley Corp (MI.N: ) for
$4.1 billion in stock.

TD’s U.S. operations include the East Coast TD Bank
network, and it owns just under half of online broker TD
Ameritrade (AMTD.O: ). TD has made small U.S. retail bank
acquisitions in the last two years and bought Commerce Bancorp
Inc for $7.7 billion in 2007.
(Reporting by Megan Davies and Cameron French; additional
reporting by Paritosh Bansal; Editing by Frank McGurty and
Gunna Dickson)

UPDATE 2-TD Bank close to Chrysler Financial deal-source