The bank has reached a tentative pact to free itself from mounting civil disputes with the government while leaving a criminal inquiry unresolved, Bloomberg reported, citing a person familiar with the talks.
The agreement with the Department of Justice would mark the largest amount paid by a financial firm in a settlement with the U.S.
The potential settlement with the Justice Department exceeds estimates last September that JPMorgan would end up paying as much as $11 billion over the allegations, according to the Wall Street Journal.
The payouts would cover a $4 billion accord with the Federal Housing Finance Agency over the bank’s sale of mortgage-backed securities.
The deal, which may be announced this week, also resolves pending inquiries by New York Attorney General Eric Schneiderman.
The settlement would amount to more than half of JPMorgan’s record $21.3 billion profit last year, or 1.5 times what the firm’s corporate and investment bank set aside to pay employees during this year’s first nine months.
The outline of the tentative accord was reached during a telephone call between U.S. Attorney General Eric Holder, JPMorgan Chief Executive Officer Jamie Dimon, JPMorgan General Counsel Stephen Cutler and Associate U.S. Attorney General Tony West.
JPMorgan shares closed up 0.2 percent to $54.30 on Oct. 18, logging a three-day winning run. The stock has rallied 23 percent this year, giving the firm a market value of $204.1 billion.