NEW YORK ( TheStreet) -- Toronto-Dominion Bank ( TD - Get Report) is close purchasing Chrysler Financial for about $6 to $7 billion, according to Bloomberg.

Chrysler Financial is owned by private equity firm Cerberus Capital Management. According to the report, Cerberus would keep $1 billion of Chrysler Financial's assets. Cerberus purchased the assets in 2007 as part of the firm's push into the auto industry.

Toronto-Dominion has been expanding over the past year through the acquisitions of South Financial Group and several Federal Deposit Insurance Corp.-assisted transactions.

Jim McTevia of McTevia & Associates told TheStreet in an interview earlier this month that many large banks are looking to get into auto lending at the moment.

Separately, Gerard Cassidy, a RBC Capital Markets analyst suggested that several banks including PNC ( PNC), Wells Fargo ( WFC) and US Bancorp ( USB) could also looking at acquiring in the auto sector to diversify assets.

--Written by Maria Woehr in New York.

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