J.P. Morgan, the country's biggest bank by assets, could be paying out $7 billion to the government and another $4 billion to consumers pretty soon. REUTERS/Neil Hall

JPMorgan Chase & Co (NYSE:JPM) is in talks with the federal and state regulators to settle probes into mortgage-backed securities for $11 billion, the Wall Street Journal reported Wednesday.

The possible settlement breaks down to $7 billion cash and $4 billion in relief that the bank, the country’s biggest by assets, would pay to consumers, unnamed sources told the paper.

The agreement is still shaky. Government lawyers say they are trying to establish a framework for the agreement by next week.

And negotiations could crumble. The bank could end up paying about $3 billion just to resolve one of the cases under discussion, the Journal said. And if talks fail, the government could still file a lawsuit and proceed to court.