“Two of the top regulators of corporate malfeasance are vowing to work together and come up with a ‘global settlement’ to address conflicts of interest involving Wall Street research and questionable practices involving the sale of initial public offerings, according to people close to the matter,” writes Charles Gasparino in today’s Wall Street Journal.

“New York state Attorney General Eliot Spitzer and Securities and Exchange Commission Chairman Harvey Pitt are planning to issue a ‘joint statement’ as early as Thursday, saying that they have a common interest in coming up with a single plan to regulate abuses involving analysts’ conflicts and IPO allocations. Two other Wall Street regulatory agencies, the National Association of Securities Dealers and the New York Stock Exchange, are also expected to join the accord, these people said.”

“The statement comes amid a flurry of investigations into analysts’ conflicts and alleged IPO abuses at some of the nation’s largest Wall Street firms. The most aggressive investigation, conducted by Mr. Spitzer’s office, involves allegations that Citigroup Inc.’s Salomon Smith Barney brokerage unit misled small investors with overly optimistic research on telecommunications companies that were also investment-banking customers. Mr. Spitzer is also investigating allegations that Salomon doled out hot IPOs to corporate executives who rewarded the firm with underwriting assignments.”

“All this comes as the SEC has launched its own investigation into the conflicts and abuses, setting up the possibility that Wall Street firms under scrutiny may have to reach multiple settlements to get the matter behind them. Recently, however, Mr. Pitt has let it be known that he would like a broad settlement that ends the probes once and for all.”

“A spokeswoman for the SEC had no comment; a spokesman for Mr. Spitzer also declined to comment.”

“While the statement is unlikely to contain substantive information about the Citigroup probe or other investigations, regulatory officials said it is significant nonetheless. Mr. Spitzer has often criticized Mr. Pitt for failing to aggressively regulate the securities industry over analysts’ conflicts and IPO allocations. In recent days, as Mr. Pitt has announced plans for a ‘global settlement,’ Mr. Spitzer has said he wouldn’t take part unless the SEC chairman changes his stripes and enacts tough changes.”