Bank of America has been in discussions with US regulators about paying $400 million to $450 million to settle allegations it violated rules designed to safeguard client accounts, according to people familiar with the matter.

The Securities and Exchange Commission has been investigating whether Bank of America had proper controls for some customer accounts and retail brokerage funds. One of the issues: whether the bank used complicated trades and loans to free up billions of dollars in cash for its own uses that it would usually have had to set aside to meet regulatory requirements, people familiar with the inquiry said. A settlement could be announced as soon as June 23.