BUSINESS
11/15/2013 05:13 pm ET

JPMorgan Chase Reaches $4.5 Billion Settlement Over Housing Collapse

JP Morgan Chase Chairman and CEO Jamie Dimon is interviewed on the floor of the New York Stock Exchange Friday, July 12, 2013
JP Morgan Chase Chairman and CEO Jamie Dimon is interviewed on the floor of the New York Stock Exchange Friday, July 12, 2013. (AP Photo/Richard Drew)

NEW YORK - JPMorgan Chase & Co has agreed to pay $4.5 billion to settle claims by investors who lost money on mortgage-backed securities in the collapse of the U.S. housing market, a person familiar with the matter said.

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, the person said.

The settlement does not include trusts issued by Washington Mutual, which JPMorgan also acquired, the person said.

(Reporting by Karen Freifeld; Editing by Gary Hill)

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