Rejecting community protests, the Federal Reserve Board has given Toronto-Dominion Bank permission to acquire Waterhouse Investor Services and its subsidiary bank.

As part of the approval, Toronto-Dominion agreed to submit quarterly Community Reinvestment Act reports for two years to the Federal Reserve Bank of New York.

The reports must tell what the Canadian bank has done to meet the credit needs of low-income communities. The bank can stop submitting the reports if it receives a CRA grade of "satisfactory" or better during its next exam.

Community groups had blasted the deal, saying Waterhouse's subsidiary bank had not lived up to its community reinvestment pledges.

But the Fed said Monday that Waterhouse National Bank bought $2 million in New York City housing bonds in August and has committed to making $1 million in community development loans this year.

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