The Federal Reserve officials have said that they will not accept a plan proposed by JPMorgan Chase under which, the banking giant wants to offset the $13 billion mortgage bond settlement payment with the reimbursement from the FDIC.

The banking giant headed by Jamie Dimon proposed the plan to settle the amount to be paid by the bank for settling allegations in the mortgage market with the reimbursement it is set to receive from the FDIC. The Department of Justice has indicated that it will not accept such a plan, which could derail the multi-agency settlement. However, senior officials have said that the negotiations are on track and the talks might conclude this week.

JPMorgan Chase has agreed to pay a total of $5.1 billion to settle Federal Housing Finance Agency claims relating to the home loans and mortgage-backed securities sold by the company to Fannie Mae and Freddie Mac. The agreement is a part of the $13 billion deal that the financial giant is negotiating with the authorities.

The Federal Housing Finance Agency has sought as much as $6 billion from the company, according to reports. JPMorgan Chase is moving closer to a $13 billion deal with regulators to settle civil charges relating to its behaviour in the financial markets at the beginning of the financial crisis.