JPMorgan Chase to pay investors $4.5B

NEW YORK JPMorgan Chase (JPM) will pay investors $4.5 billion to settle a lawsuit over the sale of residential mortgage-backed securities that soured during the housing crash.

"This settlement is another important step in J.P. Morgan's efforts to resolve legacy related RMBS matters," JPMorgan said in a statement after U.S. financial markets closed. "The firm believes it is appropriately reserved for this and any remaining RMBS litigation matters."

The settlement includes 21 major institutional investors. The mortgage-backed securities were issued by JPMorgan and Bear Stearns between 2005 and 2008. JPMorgan acquired the failing investment bank Bear Stearns in March 2008.

The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App