Acquisition opportunities were very much front and centre in TD Bank Financial Group’s conference call with analysts today.

The bank’s U.S. operations are expected to be the chief players in any M&A activity, both in the retail banking business with its TD Banknorth subsidiary and in the discount brokerage business via TD Waterhouse.

TD CEO Ed Clark indicated there are M&A opportunities in the U.S. banking business, but the issue is finding the right deal at the right price. The bank notes that valuations for potential targets, although they are coming down, are still too high. It suggests that deals should become more affordable in the second half of this year, and even cheaper next year, as firms fail to meet profit expectations.

As for the discount brokerage business, there have been rumblings about possible deals during the past couple of weeks. Clark says he likes this segment and TD’s position in it, with or without a deal. He says TD will continue to follow its organic growth strategy there and take advantage of acquisition opportunities that meet its criteria.

As for TD Securities, the firm reported its decision to exit the global structured products business as it believes it can no longer make a go of this business as a niche player, because of margin compression and increasing risk infrastructure demands. Clark stresses that TD remains a player in the global derivatives business.

To account for its departure from the global structured products business, it recorded a $21-million restructuring charge in the quarter. Further charges are expected in future periods, as it only made the restructuring decision toward the end of the quarter. Most of the rest of the charge is expected to fall in the third quarter, but it could possibly extend as far as the first quarter of next year. TD’s fiscal yearend is October 31.