Business

JPMorgan settles some claims for $4.5 billion

JPMorgan Chase said on Friday it has agreed to pay $4.5 billion to settle claims by investors who lost money on mortgage-backed securities before the US housing market collapse.

The bank, headed by CEO Jamie Dimon, reached the agreement with 21 institutional investors in 330 residential mortgage-backed securities trusts issued by JPMorgan and Bear Stearns (which it took over during the financial crisis), according to the bank and lawyers for the investors.

The deal still has to be accepted by trustees for the trusts holding the securities.

The settlement doesn’t include trusts issued by Washington Mutual, which JPM also acquired.

The deal is separate from the preliminary $13 billion settlement JPMorgan has reached with the US government that would resolve a raft of actions over mortgage-backed securities.

Trustees have until Jan. 15 to accept the offer, which may be extended for another 60 days, according to Gibbs & Bruns, the law firm representing the institutional investors.

JPM closed at $54.87, up 47 cents, Friday.