Banking giant JPMorgan has tentatively agreed to pay $13 billion (£8 billion) to settle allegations surrounding the quality of mortgage-backed securities it sold in the run-up to the 2008 financial crisis.
If the agreement is finalised it would be the US government's highest-profile enforcement action related to the financial meltdown that plunged the economy into the deepest recession since the Great Depression of the 1930s.
The source said Attorney General Eric Holder, Associate Attorney General Tony West, JP Morgan chief executive Jamie Dimon and the bank's general counsel, Stephen Cutler, negotiated the tentative settlement in a Friday night phone call.
More top news
A keeper killed by a tiger at a zoo in Cambridgeshire has been named in reports and described as the "shining light" of her workplace.
The two women charged with murdering the half-brother of North Korean dictator Kim Jong-un have appeared in court in Malaysia.
More than one million families will benefit from Labour's plan to overhaul "patchy" childcare provision, the party has said.