WASHINGTON (AP) ― JPMorgan Chase & Co. has reached a record $13 billion settlement with federal and state authorities, resolving claims over the bank’s sales of low-quality, high-risk mortgage-backed securities that collapsed in value during the U.S. housing crisis.

The agreement is the latest chapter in the bursting of the housing bubble. “Without a doubt, the conduct uncovered in this investigation helped sow the seeds of the mortgage meltdown,” Attorney General Eric Holder said. “JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm’s behavior.”

The settlement announced Tuesday requires JPMorgan to pay $9 billion and provide $4 billion in consumer relief, including principal reductions and other mortgage modifications for homeowners facing foreclosure.

According to a document filed as part of the settlement, JPMorgan acknowledged that it regularly represented to investors that mortgage loans in various securities complied with underwriting guidelines. Contrary to those representations, on a number of occasions JPMorgan employees knew that the securities did not comply with those underwriting guidelines, the Justice Department said.

On Monday, the Justice Department’s No. 2 official said too many financial institutions had failed in their duty to ensure that their businesses were run cleanly.

Recounting the conduct common to many banks including JPMorgan, Deputy Attorney General James Cole told the American Bankers Association that too many supervisors incentivized excessive risk taking.