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JP Morgan to pay $1.7bn to victims of the Madoff fraud

8 January 2014 Last updated at 00:12 GMT

JP Morgan Chase has agreed to pay $1.7bn (£1bn) to victims of the Bernard Madoff fraud following a settlement with US prosecutors.

The settlement comes after Federal prosecutors accused the bank of ignoring red flags about Madoff's crimes.

"We recognise we could have done a better job," said JP Morgan spokesperson Jennifer Zuccarelli.

The bank has agreed to improve its controls as part of the settlement.

Hugh Pym reports.