The Globe and Mail reports in its Friday edition that TD Bank answered two key questions this week by setting aside $2.6-billion (U.S.) to pay penalties for allowing drug dealers to launder bags full of cash in its U.S. branches. The Globe's Andrew Willis writes that TD predicts it will pay about $3-billion (U.S.) in fines and strike a settlement by the end of the year. As analyst Meny Grauman at Scotiabank put it, this "may be the beginning of the end" of TD's AML woes. TD now has at least two more big issues begging for resolution before it can begin to recover from self-inflicted wounds. Chief among them is whether regulators impose additional sanctions on the U.S. retail network as conditions for doing business. On Thursday, Mr. Grauman said in a report, "The real issue in our view has always been and remains the nonmonetary penalties that are sure to be part of a final settlement with the U.S. authorities." As chief executive officer Bharat Masrani prepares to depart after a decade at the helm, TD's next CEO inherits the formidable task of rebuilding a bank humbled by scandal. If the AML settlement imposes severe restrictions on TD's operations, TD's board should be recruiting external candidates as the next CEO.