NEW YORK (TheStreet) -- Shares of Citigroup Inc. (C) are slightly lower in pre-market trade after it was reported that the bank has been sending hedge fund firms letters informing them that it cannot sell investments in hedge funds and private equity funds to clients after a deal with SEC, according to the the Wall Street Journal.
This month the bank reached a $285 million fraud settlement with the SEC over a complaint involving a 2007 sale of mortgage-linked securities debt that resulted in over $700 million of investor losses.
Citigroup said in the letter to hedge fund firms that it was working with the SEC to resolve the issue, but that the bank is allowed to sell private investments to large institutions, the Journal said.
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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 a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."