WASHINGTON (AP) -- JPMorgan Chase (NYSE:JPM) and Credit Suisse (NYSE:CS) have agreed to pay a combined $417 million to settle federal civil charges of deceiving investors through sales of risky mortgage bonds ahead of the 2008 financial crisis.
The Securities and Exchange Commission says that JP Morgan failed to tell investors that mortgages tied to the bonds were delinquent. And both banks failed to properly disclose practices that allowed them to profit while investors lost millions.
JPMorgan is paying $296.9 million. Credit Suisse will pay $120 million. The money will go to the investors, the SEC said.
It is the latest case against major financial firms for their conduct in the years preceding the 2008 crisis.