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
In an interview with The Sunday Telegraph David Cameron has set out a series of policies designed to appeal to traditional Tory voters.
Nick Clegg will attempt to win over the female electorate when he kicks off the Liberal Democrats' general election campaign later today.
Up to £140 billion of savings could be released when over 55-year-olds are allowed to cash in their pension pots from April 6th.