A separate settlement with the US Justice Department is expected to be announced soon. It is the biggest settlement ever by a US bank. In a statement JP Morgan said the settlement resolves the biggest case against the firm relating to mortgage-backed securities.
The bank added that the agreement relates to "approximately $33.8 billion of securities purchased by Fannie Mae and Freddie Mac from JP Morgan, Bear Stearns and Washington Mutual" from 2005 - 2007.
JP Morgan bought Bear Stearns and Washington Mutual at the height of the crisis of 2008-2009, and has argued it should not be punished for mistakes made before those deals.