JP Morgan’s penalties for the "London whale" trading fiasco, in which up to $6.2 billion was lost, could be as high as $600 million in a settlement due to be completed as early as September, the Wall Street Journal reported, citing unnamed sources.

A raft of UK and US regulators, such as the US Justice Department, US Securities and Exchange Commission and the UK’s Financial Conduct Authority have been investigating the Wall Street bank’s handling of the affair. Not all agencies have agreed to their final numbers and the total could still be above or below the range, one source is quoted by the WSJ as saying.

Family Wealth Report is in contact with JP Morgan on the matter. The bank declined to comment.

The losses were revealed in the spring of 2012. While not strictly a wealth management issue, the losses at this large bank highlight the reputational damage that can be caused by such adverse news headlines. Firms such as UBS, for example, have also sustained large trading losses in recent years, leading to management resignations and restructuring of business units. (In the case of UBS, it lost $2.3 billion due to a London-based rogue trader who was subsequently convicted and jailed last year.)

JP Morgan, a bank that had been one of the few big financial firms to emerge with its status enhanced rather than diminished through the 2008 financial crisis, suffered the losses caused by wrong-way bets on the credit derivatives market. A UK trader known as the "Whale," Bruno Iksil, made a credit derivatives bet that hit the bank; the move has led to the departures of several senior figures.

The WSJ report said negotiations over a settlement are part of a larger effort by JP Morgan to draw a line under a number of legal wrangles.

One US regulator is asking JP Morgan to pay more than $6 billion to settle claims that the bank misled mortgage-finance companies Fannie Mae FNMA and Freddie Mac about the quality of mortgages it sold to them during the housing boom, the news service said, citing unnamed sources. JP Morgan is resisting the amount, these people added.