US financial giant, JPMorgan Chase & Co has said that it has agreed to pay $2 billion to reach a settlement in the case involving Bernard Madoff's Ponzi scheme.

The bank has said that it will settle allegations that it ignored signs of Bernard Madoff's Ponzi scheme. The bank is moving to reach a $2 billion settlement with federal authorities, according to people closer to the matter. The bank is being accused of ignoring signs of scheme.

The settlement also involves a deferred prosecution agreement and a criminal action if the bank agrees with the government's case and changes its behaviour. The bank is expected to pay a total of more than $1 billion to the prosecutors in Manhattan and the remaining amount to the Office of the Comptroller of the Currency (OCC) and a unit of the Treasury Department that was involved in investigating the breach of safeguards against money laundering.

A media report said that government is planning to use a part of the money to pay people who lost money to the scheme. Madoff was convicted in 2009 of defrauding thousands of investors and is serving a 150-year prison sentence.