UPDATE 1-TD sees another tough year for U.S. operations

* Says U.S. economy won't improve until 2011

* Price of U.S. acquisitions still too high

CALGARY, Alberta, Nov 4 (Reuters) - The head of Toronto-Dominion Bank (TD.TO: Quote, Profile, Research) said on Wednesday he did not foresee the U.S. economy improving until 2011 and warned that expecting the U.S. consumer to lead the recovery after stimulus spending was over was problematic.

Ed Clark, who heads Canada's second-largest bank, said TD's big U.S. operation had been hit by higher loan losses and lower margins, and that the economic outlook remained cloudy.

"I would say, realistically, 2010 is going to be another tough year. It's not until 2011 that I could start to see the U.S. economy improve," Clark told reporters following a speech to the Calgary Chamber of Commerce.

Asked about acquisition opportunities in the United States, Clark said that, so far, it appeared TD was not willing to pay as much as others, so the bank had stayed on the sidelines.

Canada's big banks have emerged from the financial crisis in relatively good position, with fat capital levels. That has led to speculation they are looking to acquire rival banks that have struggled to recover from the crisis.

Clark has said previously that TD is looking to expand its U.S. presence down the East Coast. (Reporting by Jeff Jones in Calgary; editing by Rob Wilson)