JPMorgan Chase has agreed to pay $4.5 billion to settle claims by 21 major institutional investors who lost money on mortgage-backed securities in the collapse of the U.S. housing market, the bank said in a release.
The bank will make a binding offer to the trustees of 330 residential mortgage-backed securities trusts issued by the bank and Bear Stearns, which it took over during the financial crisis.
"This settlement is another important step in J.P. Morgan's efforts to resolve legacy related RMBS matters," said the bank in a release. "The firm believes it is appropriately reserved for this and any remaining RMBS litigation matters."