NEW YORK (TheStreet) -- Bank of New York Mellon (BK) - Get Report shares are down 1.11% to $40.38 in trading today as the bank is reportedly nearing a settlement that may rise above $700 million for its role in the foreign exchange services scandal, according to Reuters.

A settlement would resolve a lawsuit filed against the bank by New York State Attorney General Eric Schneiderman and Manhattan U.S. Attorney Preet Bharara who accuse the company of misleading customers by telling them they would execute trades using the best rates available when they actually allegedly use the best rates for themselves and use worse rates for their customers.

Schneiderman's office estimates that Bank of New York earned about $2 billion over the past decade using the scheme. 

Last month the bank updated its fourth quarter financial results to include an extra $598 million set aside to settle outstanding litigation including the forex scandal for which it is reportedly getting ready to settle.

TheStreet Ratings team rates BANK OF NEW YORK MELLON CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BANK OF NEW YORK MELLON CORP (BK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth came in higher than the industry average of 13.0%. Since the same quarter one year prior, revenues slightly increased by 2.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
• Net operating cash flow has significantly increased by 302.04% to $1,186.00 million when compared to the same quarter last year. In addition, BANK OF NEW YORK MELLON CORP has also vastly surpassed the industry average cash flow growth rate of 3.62%.
• The gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 97.59%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BK's net profit margin of 6.16% significantly trails the industry average.
• BANK OF NEW YORK MELLON CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BANK OF NEW YORK MELLON CORP increased its bottom line by earning $2.16 versus $1.74 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $2.16).
• You can view the full analysis from the report here: BK Ratings Report

Must Read: Warren Buffett's Top 25 Stocks for 2015