The direction of settlement talks between US regulators and securities firms has tilted back in Wall Street's favour with increasing speculation that plans for a research panel are dead in the water.

Regulators, including the Securities and Exchange Commission, the NASD and Eliot Spitzer, the New York State attorney general, have signalled that they are prepared to back a scheme using independent monitors. "It seems that we are moving away from the idea of a panel which is a good thing," said one banker.