INVESTMENT bank JP Morgan Chase & Co has agreed a $546m (£361m) settlement with the bankrupt brokerage MF Global, a US court filing late last night showed.
The amount will go some way to help repay the brokerage’s customers.
JP Morgan will pay $100m (£66m) to former MF Global clients as part of a settlement reached with James Giddens, the trustee that is liquidating MF Global.
JP Morgan will also return more than $29m (£19m) of the brokerage's funds held by the bank, while releasing claims on $417m (£276m) that was previously returned to Giddens.
“The settlement agreement resolves claims by the trustee and customer representatives against JP Morgan that would otherwise result in years of costly litigation between the parties with an uncertain outcome,” Giddens said in the filing.
JPMorgan was the lead on a $1.2bn (£795.1m) loan to MF Global, and was also one of its primary clearing banks before the broker collapsed in October 2011.