NEW YORK (CNN/Money) - Citigroup Inc. offered to create a separate research branch within the company in an effort to settle investigations into alleged conflicts of interest between its investment banking and research departments, according to a published report Monday.

Lawyers for the world's largest financial services firm made the proposal Friday to officials with the Securities and Exchange Commission and the National Association of Securities Dealers, but the proposal is contingent on similar moves by other firms, the Wall Street Journal reported.

Citigroup also said it is willing to pay a fine, which may reach several hundreds of millions of dollars to settle the investigations, according to the paper.

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Under the company's proposal, the new separate research arm would serve both institutional and individual clients and be funded from general Citigroup revenue, according to the Journal.

Analysts would also be prevented from joining investment bankers in pitch meetings with clients under the offer, the paper reported.

Citigroup needs New York state Attorney General Eliot Spitzer to sign off on any deal, however.

Spitzer is investigating Citigroup's Salomon Smith Barney unit and its former telecom analyst Jack Grubman for civil and possible criminal violations, but has made it clear he won't endorse any proposal without clear separation between the company's research and investment banking divisions, the Journal reported.

Shares of Citigroup (C: Research, Estimates) fell 49 cents Friday to close at $29.02.