The Globe and Mail in its Saturday edition looks at why the Bay Street set is gossiping about TD Bank. The Globe's Tim Kiladze writes that a decade ago, the lender was in immaculate shape and earned all kinds of respect among investors. Bit by bit, however, TD is losing its lustre. This became an inescapable fact in May after TD's $13.4-billion (U.S.) attempted takeover of Memphis-based First Horizon was blocked by U.S. authorities over unnamed regulatory issues. TD has since disclosed a significant anti-money-laundering problem that has attracted the attention of the U.S. Department of Justice. A financial penalty is expected, and analysts estimate could be as much as $1-billion (U.S.). TD's stock, trading at 10.8 times next year's earnings, is second best in the industry. Yet the bank is starting to fall behind its long-time chief rival, Royal Bank of Canada, which trades at 11.5 times estimated earnings. RBC's shares have also outperformed TD's over the past five years, and now there are questions about TD's future growth. RBC has a major deal to buy HSBC Canada, pending Ottawa's approval. TD, meanwhile, was banking on expansion in the U.S., but future deals look like they are on ice because of the regulatory woes.