JP Morgan is to settle the class action litigation over Enron at a cost of $2.2bn.

The deal is subject to the approval of the Texas court which has juristiction and the Board of Regents of the University of California. (UC) (Lead plaintiff of the action.)

The bank is to take a charge of $2bn in this quarter to cover the settlement,

We are working hard to put the uncertainty of litigation risk behind us, said William B. Harrison, Jr., Chairman and CEO. "In this regard, the firm appreciates the efforts of the Regents of the University of California and its advisors. By settling this case and increasing reserves for our remaining legal issues, the firm can better focus its energies on building our great company and serving our clients and shareholders."

The move follows on from Citigroup's settlement last week. The UC in that case also settled for $2bn.

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