The money may be the biggest cash payout from the US-based JP Morgan, which on Monday announced it was “fraudulently” claiming £2 billion in profits from its investment arm.
The bank’s chief executive, Jamie Dimon, said that it was time for the US regulators to look at the company’s practices.
“We’ve seen a lot of bad behaviour from the American regulators in recent years,” he said.
“But this is something different.
The behaviour is not what you would expect.
It’s really not what we would expect in the UK.”
The bank said it was seeking to recover £2.8 billion.
JP Morgan did not say how much money was actually stolen from the UK investors.
Dimon said the money was “a small part of the total funds”.
The money was to be used for “appropriate compensation” to the investors.
JP is a leading US financial services company.
It has a $2.5 trillion market capitalisation, according to Bloomberg data.
In recent months, it has been under scrutiny for its trading strategies, which it says are designed to boost the value of its shares.
Last year, the bank was fined by US regulators for rigging the London interbank offered rate.
JP also faces allegations of colluding with foreign governments to manipulate the benchmark rate.
The regulator said in a letter to the bank that it would “immediately review” JP Morgan’s trading strategies.