US financial giant, JPMorgan Chase is moving closer to reaching a $4.5 billion settlement with a group of investors following claims that bank sold faulty mortgage-backed securities that went bad later causing huge losses.

The deal $4.5 billion settlement with a group of 21 institutional investors is spate from the tentative $13 billion settlement with the Justice Department over its behaviour leading up to the financial crisis. JPMorgan Chase is moving closer to a $13 billion deal with regulators to settle civil charges relating to its behaviour in the financial markets at the beginning of the financial crisis.

US financial giant, JPMorgan Chase has agreed to pay a total of $5.1 billion to settle Federal Housing Finance Agency claims relating to the home loans and mortgage-backed securities sold by the company to Fannie Mae and Freddie Mac. The banking giant will pay $4 billion to settle FHFA's 2011 lawsuit that accuses the company of selling faulty mortgage bonds to Fannie Mae and Freddie Mac.

The agreements come as chief executive; Jamie Dimon looks to repair the bank's relationship with the US authorities and the investors.