With Toronto-Dominion Bank's $6.3 billion agreement to buy Chrysler Financial from the private equity firm Cerberus Capital Management L.P., the Toronto banking giant is betting that demand for auto loans will pick up as the economy rebounds.

Toronto-Dominion Chief Executive Ed Clark said in a conference call that his $600-billion asset company — having weathered the recession better than most banks — has the financial strength to take a bigger slice of the estimated $700 billion U.S. auto loan market as people start buying cars again.

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