NEW YORK (TheStreet) -- Goldman Sachs (GS - Get Report) stock is declining by 0.30% to $160.75 in after-hours trading on Thursday, as the company's 2015 fourth quarter earnings will be reduced by $1.5 billion, according to a statement by the company.
The reduction reflects the bank's agreement to resolve an investigation regarding "securitization, underwriting and sale of residential mortgage-backed securities from 2005 to 2007," the statement continues.
Under the terms of the agreement, Goldman will pay a $2.385 billion penalty, make $875 million in cash payments and provide $1.8 billion in consumer relief.
The agreement resolves actual and potential civil claims by the Department of Justice, the New York and Illinois Attorneys General, the National Credit Union Administration and the Federal Home Loan Banks of Chicago and Seattle.
"We are pleased to have reached an agreement in principle to resolve these matters," CEO Lloyd Blankfein said in the statement.
Separately, TheStreet Ratings rates Goldman Sachs as "buy" with a ratings score of A-.
The company's strengths include its attractive valuation levels, good cash flow from operations and expanding profit margins, and these strengths overshadow Goldman Sachs' sub-par net income growth.
You can view the full analysis from the report here: GS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.GS data by YCharts