The Globe and Mail reports in its Saturday edition that the punishment TD Bank is facing in the United States is severe. The Globe's John Heinzl writes that in addition to slapping TD with stiff financial penalties, regulators have imposed a cap on its U.S. retail banking assets, which will likely constrain the bank's growth for years to come. One could argue that the bad news is already baked into the stock price, and that the downside from here may be limited. As severe as TD's penalties are, it is important to keep them in perspective. The asset cap applies only to TD's U.S. retail operations. The business accounts for an estimated 27 per cent of TD's cash earnings. Other business lines, including investment banking and TD's Canadian and global operations, are not affected. The shares are now trading at about 9.6 times estimated fiscal 2025 earnings, compared with an average of 11.4 times for the rest of the Big Five. Unless there are more skeletons in the TD closet, its discounted valuation could indicate that the stock is nearing a bottom. As for the stock's dividend, analysts expect that it will continue to grow, albeit at a slower pace than before. Finally, TD provides an attractive yield of 5.2 per cent.