Morgan Stanley (MS) and Goldman Sachs Group (GS) are getting closer to resolving claims that the two firms misled investors in mortgage bonds during the financial crisis, an article The Wall Street Journal said.

Morgan Stanley is in talks with Justice Department officials to settle its investigation, with the costs likely to exceed $1 billion, people familiar with the matter said. On Monday, Goldman said it was informed by federal litigators in December that the firm might face a civil lawsuit stemming from the government’s mortgage-bond probe.

Settlement talks between Justice Department officials in Washington and Morgan Stanley remain at an early stage.