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JPMorgan to pay $500 million in Bear Stearns mortgage settlement: source

By Jonathan Stempel NEW YORK (Reuters) – JPMorgan Chase & Co has agreed in principle to settle class action litigation arising from Bear Stearns' sale of $17.58 billion of mortgage securities that proved defective during the recent U.S. housing and financial crises. The largest U.S. bank, which bought Bear in 2008, will pay roughly $500 million to investors led by a group of pension funds, a …