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JPMorgan Sets Tentative $4.5 Billion Accord for Mortgage Bonds

JPMorgan Chase & Co., enmeshed in legal battles with regulators, U.S. agencies and clients, agreed with 21 institutional investors to pay $4.5 billion to resolve claims the bank sold faulty mortgage securities.

The preliminary deal covers 330 mortgage bond trusts issued between 2005 and 2008, JPMorgan said in a statement yesterday. The accord still needs approval from trustees overseeing those securities and may be subject to court review, JPMorgan said.