Sources familiar with the matter were quoted by media sources as saying that the bank will also admit its failures in maintaining required internal controls as well as disclosing wrong information pertaining to the 2012 trades.
It is believed that the settlement with the SEC, the Office of the Comptroller of the Currency (OCC), the Federal Reserve and the UK Financial Conduct Authority (FCA) will be announced shortly.
The settlement with US and UK will possibly make JP Morgan responsible for failing to properly oversee former traders, who were accountable for the trading bets and lacked sufficient controls to thwart alleged hide of the losses.
While its chief executive Jamie Dimon has apologized to shareholders for the episode, the lender has repeatedly claimed that its executives had not intentionally mislead investors over the losses.
Most recently, regulators filed criminal charges against two former JP Morgan traders who were accused of concealing losses on the failed trades.
In another legal debacle, the US Federal Housing Finance Agency (FHFA) is reportedly pressing JP Morgan to pay $6bn to settle cases over sale of bad mortgage bonds to government-backed finance companies Fannie Mae (FNMA) and Freddie Mac (FMCC).
Over the last two years, the bank has incurred nearly $10bn in legal cases and at the end of June 2013, it raised its estimate of losses to more than of its reserves to $6.8bn from $6bn at the end of March this year.
