The deal, which also would include a deferred-prosecution agreement with U.S. Attorney Preet Bharara, could be wrapped up by the end of year, those close to the case told the newspaper. Prosecutors have been looking for whether JPMorgan failed to alert regulators despite numerous red flags. A central component of the case is why the bank didn't provide a formal report raising concerns about Madoff in the U.S. despite filing such a document with U.K. authorities, the Journal reported.