JPMorgan Chase and Co. will pay $13 billion in a joint federal-state settlement over its sales of mortgage-backed securities. Massachusetts will receive $34.4 million as part of the deal, which will resolve a case against the bank brought by Attorney General Martha Coakley. 

The Massachusetts Attorney General’s Office, the Department of Justice and four other states entered into the agreement today. The deal includes an estimated $4 billion in consumer relief, $7 billion for investor compensation, and $2 billion for fines. This is the fifth settlement resulting from Coakley’s ongoing investigation into the role of Wall Street investment banks in securitizing residential mortgage loans, according to the AG’s office.

"This settlement today is part of our ongoing effort to hold Wall Street accountable for its role in the financial crisis," Coakley said in a statement. "This is the fifth case that Massachusetts has resolved since 2009 around the securitization of unfair mortgage loans. We are pleased that other enforcement agencies are coming together in a cooperative effort to clean up this mess and help prevent a repeat of the foreclosure crisis." 

The attorney general’s office partnered with the state of Delaware, the Department of Justice, and other enforcers to investigate unfair and deceptive practices committed by JPMorgan investment units Bear Stearns and Washington Mutual in creating and packaging subprime loans for securitization.  

The attorney general’s office had previously investigated similar claims involving other Wall Street banks, resulting in a $60 million settlement with Goldman Sachs, a $102 million settlement with Morgan Stanley, a $52 million settlement with RBS and a $36 million settlement with Barclays Bank PLC.