J.P. Morgan Chase & Co. and Toronto-Dominion Bank agreed to pay a total of $480 million in cash to settle claims they helped Enron Corp.'s former management engage in fraud.

Enron said yesterday that J.P. Morgan, the third-largest U.S. bank, will pay $350 million and drop claims against the company valued at $660 million. Toronto Dominion, Canada's second-largest bank, said it will pay Enron $70 million in cash and an additional $60 million for claims against Enron the bank sold to other investors.

The settlements bring J.P. Morgan's Enron costs in cash and forgone recovery of debt to $3.2 billion, including a $2.2 billion agreement two months ago in a separate lawsuit by Enron shareholders. Citigroup Inc., the biggest U.S. bank; Deutsche Bank AG; and Merrill Lynch & Co. still are negotiating claims they also helped Enron hide debt and inflate revenue.

Enron, the world's largest energy trader until its 2001 bankruptcy, has reached agreement with five banks in the case, reducing the value of their claims by $3 billion.

J.P. Morgan, Enron's largest creditor, had its claims cut to less than $1 billion from about $2.9 billion with yesterday's agreement, Enron Chairman John J. Ray III said in an interview.

Barclays PLC and Credit Suisse Group are also negotiating with Enron to settle bankruptcy-related claims. Enron previously settled with Canadian Imperial Bank of Commerce, Royal Bank of Scotland Group PLC and Royal Bank of Canada.