Credit Suisse (CS), Department of Justice Close in on $1.6 Billion Settlement: Report

NEW YORK (TheStreet) -- Credit Suisse (CS) and the Department of Justice are reportedly closing in on deal as high as $1.6 billion to settle criminal charges of tax evasion. 

The charge follows an investigation into how the Swiss bank assisted individuals avoid U.S. taxes.

According to a Reuters report, people close to the matter said the discussions are still ongoing and details are yet to be finalized.

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U.S. authorities are also weighing up what effect a sizable penalty would have on Credit Suisse's ability to operate, reports The Wall Street Journal. This comes after the bank paid close to $200 million in February in relation to an SEC case accusing Credit Suisse of providing brokerage and advisory services to U.S. clients without proper registration.

Attorney General Eric Holder has reaffirmed his commitment to justice, though. In a video posted to the Department of Justice's website Monday, Holder said, "No individual or entity that does harm to our economy is ever above the law... There is no such thing as 'too big to jail'."

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TheStreet Ratings team rates CREDIT SUISSE GROUP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CREDIT SUISSE GROUP (CS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow."

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