NEW YORK (CNN/Money) - Merrill Lynch is reportedly the third financial institution whose final settlement with regulators includes allegations of securities fraud.

Citing a person familiar with the investigation, the online edition of the Financial Times Tuesday said Merrill (MER: Research, Estimates) will neither admit nor deny the fraud allegation, meaning it will be inadmissible as evidence in court.

But use of the word "fraud" in the settlement document could aid lawyers seeking millions of dollars in investor restitution, the FT said.

The paper said Citigroup's (C: Research, Estimates) Salomon Smith Barney unit and Credit Suisse First Boston will also face a finding of fraud when the final settlement document is published in the next few weeks.

In December, ten of nation's biggest securities firms agreed to pay $1.435 billion to end a probe alleging that tainted stock research duped investors into buying over-hyped shares during the '90s bull market. The regulators say stock research was essentially a marketing tool to lure investment banking clients.

Since then, the banks have reportedly been negotiating the exact language of the agreement.

The FT said the banks will be replying this week to the regulators' record of finding. A final list of findings could be announced within a month.

None of the banks -- including Merrill -- would comment, according to the FT. That was also the case among regulators at the Securities and Exchange Commission, the New York attorney general's office, the National Association of Securities Dealers and the New York Stock Exchange, the FT said.