NEW YORK (TheStreet) -- Shares of Citigroup (C) are up 0.49% to $47.65 in pre-market trade as the bank and and the Justice Department are reportedly near a deal that could cost the bank about $7 billion to settle a civil investigation into the sale of mortgage investments, sources told the New York Times.
The settlement, which is expected to be announced within the next week, caps months of negotiations that grew so tense in June that the Justice Department threatened to sue if the bank did not agree to the government's proposed penalty, the Times said.
The deal, which would be made up of a monetary penalty and relief for homeowners, would remove a huge legal obstacle that has been weighing on the bank's share price and casting a shadow over its future, the Times added.
TheStreet Ratings team rates CITIGROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CITIGROUP INC (C) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."