One of America's biggest banks is facing a record $13bn (£8bn) fine for mis-selling mortgage-backed securities in the run up to the 2008 financial crisis, say US reports.
A tentative deal has reportedly been reached between JPMorgan and the US Justice Department.
Last month, the bank was fined more than £600m over the "London Whale" trading scandal arising from disastrous trades by former bank employee Bruno Iksil.
If the deal is finalised, it would be the biggest settlement of its kind ever paid by a US company.
The agreement was reached by Attorney General Eric Holder, Associate Attorney General Tony West, JPMorgan CEO Jamie Dimon and the bank's general counsel Stephen Cutler in a phone call on Friday night, according to the Wall Street Journal.
It does not resolve a criminal investigation into the bank's conduct being handled by federal prosecutors in Sacramento, California, according to the reports.
On Friday night, Mr Holder told the bank that a non-prosecution agreement was a non-starter, meaning the Justice Department will continue its criminal investigation into JPMorgan.
JPMorgan executives give evidence over the 'Whale' losses to US Senate As part of the deal, the Justice Department expects the bank to co-operate with its probe into the sale of overvalued mortgage-backed securities, which were blamed for the near-collapse of the banking system in 2007.
JPMorgan spokesman Brian Marchiony and Justice Department spokesman Brian Fallon declined to comment on the reports.
Of the $13bn, $9bn is fines and $4bn will go to consumer relief for struggling home-owners, it is claimed.
When the US housing bubble burst in 2007, bundles of mortgages sold as securities turned sour and the investors who bought them lost billions.
In the aftermath, public outrage boiled over that no high-level Wall Street executives had been sent to jail.
Some lawmakers and other critics demanded that the big bailed-out banks and senior executives be held accountable.
In response, the US government set up a task force of federal and state law enforcement officials to pursue wrongdoing with regard to mortgage securities.
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