The Securities and Exchange Commission announced the agreement Friday to settle the case with JP Morgan and Credit Suisse.
J-P Morgan will pay $297 million to settle charges it misstated facts about the deliquency of mortgage loans and allegations of wrongdoing by Bear Stearns.
J-P Morgan acquired Bear Stearns in a government backed deal in 2008.
Federal regulators allowed both banks to settle the case without admitting or denying the guilt.
Critics of the settlement contend Washington has done too little to hold Wall Street responsible for the nation's financial collapse.
Credit Suisse will pay $120 million for similar allegations as well as making false statements in SEC filings.