The JP Morgan and Chase headquarters is seen in New York
The JP Morgan and Chase headquarters is seen in New York in this January 30, 2008 file photo. REUTERS

JPMorgan Chase, the Wall Street bank that during the financial crisis has managed to remain afloat has agreed to pay $153.6 million to settle claims by the U.S. Securities and Exchange Commission it designed and sold a product linked to risky mortgages during the housing market collapse of 2007.

Harmed investors will receive all of their money back, the SEC said in a statement. In their efforts to resolve the SEC's fraud claims, JPMorgan has also agreed to change the way it's oversight of mortgage security transactions.

The SEC is at the height of its investigations into how banks knowingly sold investments connected to risky mortgages, much to the delight of lawmakers who claimed the regulatory agency failed to hold Wall Street banks accountable for misconduct related to the financial crisis.

In May, JPMorgan said it was in advanced negotiations with the SEC to resolve the collateralized debt obligations.

The SEC's investigations has extended to CDO underwrites such as Citigroup, Deutsche Bank, UBS and Morgan Stanley, reports said.