J.P. Morgan Chase & Co. officials won't be penalized as part of a deal the largest U.S. bank is negotiating with the Justice Department over alleged failures to warn about Bernard Madoff's massive fraud, said people close to the talks.

Manhattan U.S. Attorney Preet Bharara and U.S. banking regulators intend to announce a total of more than $2 billion in fines this week, these people said. But all fines will be paid by the company as opposed to individuals, these people added.

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