Talks between ETrade and TD Waterhouse, the US online brokerage, over a potential merger have ended in failure less than a week after the discussion formally began.

News of the possible merger earlier this month caused ETrade staff in the UK to speculate whether the deal would turn into a takeover and threaten their jobs. In December, ETrade closed its equity research department to focus on its core execution business. More than a dozen analysts including head of research, Martin Evans, left the firm.