The Federal Reserve Board and Federal Deposit Insurance Corp. are set to give at least four megabanks a "harsh verdict" on their living wills, including JPMorgan Chase, according to an article by The Wall Street Journal, which cited "people familiar with the matter."

The paper said the results of the living wills, which it said are "not yet final and could change," are due out this week for the eight biggest and most complex U.S. banks. Two other banks that were said to have flunked their living wills are: Bank of New York Mellon and State Street, the paper said. Citigroup is expected to receive a positive review, according to the article.

If banks receive failing grades, they start a regulatory clock to improve their living wills within a year or face possible asset divestures and other steps mandated by regulators.

The FDIC found flaws with the living wills of several big banks last year, but the Fed declined to start the regulatory clock for fixes, saying the process was still too new. Regulators have not yet provided feedback to the firms involved, but that is expected soon.

A spokesman for JPMorgan declined to comment on the article.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.