Sept 26 (Reuters) -

Canada's TD Bank on Thursday named Andy Bregenzer

and Jill Gateman as co-heads of its U.S. commercial banking

business, replacing Chris Giamo, who retired earlier this year.

The appointments come as Canada's second-biggest lender

shakes up its top management in preparation for expected U.S.

fines stemming from regulatory scrutiny of its anti-money

laundering protocols.

Last week, TD

announced

CEO Bharat Masrani will leave the bank next year and hand

over the top job to Ray Chun, the head of its Canadian banking

unit.

The bank reported its first loss in decades in August

after

earmarking $2.6 billion

to cover the potentially hefty penalties.

The U.S. regulatory probes relate to allegations that

Chinese drug traffickers used the bank to launder at least $650

million from 2016 through 2021, and

an employee took a bribe to facilitate laundering of drug

money.

These regulatory probes come on the heels of TD Bank's

termination of its $13.4 billion acquisition of Tennessee-based

First Horizon in May 2023, a deal that would have significantly

expanded its network in the Southwestern United States.

Bregenzer, a nearly 30-year industry veteran, has been

with TD for two decades. In his new role, he will focus on the

regional commercial banks, including small businesses, in the

U.S.

Gateman will lead TD's national commercial banking

effort in the country and continue to partner with TD Securities

and TD Cowen to deliver advisory and investment banking services

to its commercial banking clients.

Gateman joined the Canadian lender in 2023 to lead its

middle-market, asset-based and sponsor-backed finance business

segments.