Â£1m for lawyer who suffered breast jibe

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Elizabeth Weston, 29, who earned £60,000 a year in the company's legal department, was offered the cash to drop her employment tribunal action against the firm.

Merrill Lynch has settled without admitting liability.

It is already fighting a £7.5 million sex discrimination claim by senior executive Stephanie Villalba.

Last Christmas senior lawyer Nathaniel Norgren is alleged to have made "disgusting" remarks about Mrs Weston.

He is then said to have knocked over a table at a City bar, spreading red wine down her front before joking about her sex life.

Mrs Weston had sued the bank for sexual harassment, constructive dismissal and victimisation. She plans to move to Sydney with her Australian husband.