I also heard on the news today that Royal bank is going to buy some of J.P Morgan’s units.

Bingo, you hit the nail on the head AJ.

The old saying is, you are who you hang around with and I don't think td wants that kind of a reputation being associated with vfc.

Interesting... I hadn't seen this post for a while.
It's interesting to note that VFC is now owned by TD bank.

I'm curious to know why TD Bank doesn't want to brand their name on bad credit car loans business.?

VFC Inc. news from Yahoo.com

VFC Inc.'s Q2 profits up 49%; Royal Bank to refer some auto loan applications

Royal Bank has come to an agreement with VFC Inc to refer some business to them.
VFC Inc is described as "an indirect consumer finance company, provides automotive purchase financing and consumer instalment loans using Internet-based technology, pre-qualified auto dealers and retail vendors across Canada."

On Monday, shares in VFC (TSX:VFC - news) closed even at $13.25 on the Toronto Stock Exchange.

VFC Inc as we know it does auto financing for sub prime loans.

According to Casselsbrock.com a Toronto Law Firm
"VFC Inc. Completes Initial Public and Secondary Offering
VFC Inc., one of the largest Canadian owned indirect consumer finance companies in Canada, completed an initial public and secondary offering of its common shares on October 6, 2003 and November 13, 2003 respectively for $50.9 million"