According to The Wall Street Journal, part of JPMorgan Chase’s (JPM) multibillion-dollar deal is at risk of falling apart over a disagreement about the bank’s effort to be reimbursed by a government-controlled fund.

A draft agreement offered by the bank Sunday night has angered federal officials and raised new questions about the ability of the two sides to finalize what would be a record-setting pact, according to people familiar with the talks.

A key sticking point is whether J.P. Morgan or the Federal Deposit Insurance Corp. bears ultimate responsibility for liabilities linked to Washington Mutual, which J.P. Morgan acquired during the financial crisis, said people close to the talks. On Sunday night, lawyers for the bank also offered a proposed deal that could give the bank extra legal protection from criminal probes—something the Justice Department leadership isn’t willing to accept, these people said.