(CNN) — WASHINGTON (CNN) -- The Justice Department and JPMorgan Chase are wrestling with whether some of the $13 billion tentative settlement covering JPMorgan's mortgage practices should come out of the government's pocket, a source familiar with the talks told CNN.
Lawyers for the two sides are continuing talks on some final sticking points in the settlement covering the bank's mortgage securities practices.
The outline of the deal was struck last Friday.
The biggest point of contention remaining is whether some of the settlement money covering mortgage securities sold by Washington Mutual, which was acquired by JPMorgan, could end up coming from the Federal Deposit Insurance Corporation (FDIC), the government-backed insurer of banking deposits, the source says.
When JPMorgan bought failing Washington Mutual from the government in 2008, the FDIC was stuck with some of its liabilities.
The Justice Department insists on language in the settlement that would prohibit JPMorgan from making claims against the FDIC for some of the money it is going to have to pay.
Part of the settlement includes JPMorgan paying $4 billion to the Federal Housing Finance Agency (FHFA) to cover alleged deceptive practices in sales of mortgage securities, including by Washington Mutual, to Fannie Mae and Freddie Mac.
So far the FHFA part of the agreement doesn't include the prohibition on JPMorgan recovering money from the FDIC. So Justice Department lawyers are seeking to insert that in the final deal.
JPMorgan declined comment.