NEW YORK (TheStreet) -- U.S. Bancorp (USB) announced today that it reached a settlement with the Justice Department to resolve an investigation into the endorsement of mortgage loan under the Federal Housing insurance program.
The company settled without admitting liability for $200 million in order to avoid a costly and protracted litigation.
Separately, the multi-state financial services holding company also announced that prior to the settlement it sold 3 million shares of class B common stock of Visa Inc. (V) for a pre-tax gain of $214 million, the sale and the settlement are expected to have a neutral effect on earnings per share for the 2014 second quarter.
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Shares of USB are flat in early afternoon trading today.
Separately, TheStreet Ratings team rates U S BANCORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate U S BANCORP (USB) 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 good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."