A source told Reuters that JPMorgan Chase & Co was close to reaching an agreement with over a dozen bondholders. The agreement, which was valued at nearly USD 6 billion, was over the faulty mortgage-backed securities the bank had issued during the financial crisis. According to the source, JPMorgan representatives and the investors already met to talk about the settlement. However, no formal terms had been agreed upon yet.

The institutional investors included BlackRock Inc, Pacific Investment Management Co and Neuberger Berman Inc, according to the source. The settlement claimed by the bondholders was also different from the tentative USD 13 billion settlement agreement the Wall Street bank had reached with the US government. The latter deal would solve civil actions brought against JPMorgan by several US regulators.

The institutional investors were led by lawyer Kathy Patrick of Gibbs & Bruns law firm. They also represented another group of investors in 2011 that reached a deal with Bank of America Corp worth USD 8.5 billion.