Why Goldman Sachs (GS) Stock Is Climbing Today

NEW YORK (TheStreet) -- Shares of Goldman Sachs Group Inc. (GS) are higher by 1.63% to $178.33 in mid-afternoon trading on Monday, as the stock continues to gain following the company's announcement it settled a lawsuit with the Federal Housing Finance Agency.

The firm will pay $1.2 billion to resolve claims it did not reveal the risks on mortgage bonds it sold to Fannie Mae (FNMA) and Freddie Mac (FMCC) prior to the financial crisis.

Goldman Sachs agreed to buy back the mortgage securities it sold to the two financial institutions for $3.15 billion.

The difference between the total and the bonds' current market value make up the $1.2 billion Goldman will pay, Market Watch reports.

Separately, TheStreet Ratings team rates GOLDMAN SACHS GROUP INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate GOLDMAN SACHS GROUP INC (GS) a BUY. This is driven by several positive factors, 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 revenue growth, attractive valuation levels, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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