U.S regulators are preparing to notify some of the country's largest banks, including JPMorgan Chase & Co., that they have submitted flawed "living wills," the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

A "living will" refers to a bank's plan for how it would wind down operations during a crisis without the help of public money.

At least half of the eight U.S. banks labeled “systemically important,” meaning they could significantly damage the American financial system if they encountered distress, are expected to receive "harsh verdicts" on their plans for how they would handle a potential bankruptcy without a federal bailout, the Journal reported.

The Federal Deposit Insurance Corporation and the Federal Reserve, the two regulators reviewing the wills, declined to comment to Reuters on the report. Reuters was unable to verify the story.

Under the Dodd-Frank Wall Street reform law, banks must submit the plans annually. Banks that submit plans that regulators do not find credible can face higher capital requirements and stricter regulation.