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(For other news from Reuters Financial Regulation Summit, clickon http://www.reuters.com/summit/FinancialRegulation15)
By Karen Freifeld and Jonathan Stempel
NEW YORK, May 11 (Reuters) - Barclays Plc's upcoming settlement of regulatory charges into whether itmanipulated foreign exchange rates is likely to result in thetermination of employees, New York state's banking regulatorsaid on Monday.
"In every matter where there is bad conduct, we look veryclosely to see if we can identify individuals who have engagedin those wrongful acts and, if there is, then there should beconsequences," said Benjamin Lawsky, superintendent of the NewYork Department of Financial Services.
"We would do that with Barclays as well," Lawsky said at theReuters Financial Regulation Summit in New York.
Lawsky also said his office was making "good progress" in aseparate probe into whether Barclays used its computerizedcurrency transactions to favor its own interests at the expenseof clients. That probe is potentially more serious and may havegreater consequences for Barclays because 80 percent of foreignexchange trading has been done electronically, he added.
Barclays is one of five major banks expected to resolveforeign exchange probes as soon as this week with the U.S.Department of Justice and other authorities over how traderscolluded to manipulate foreign exchange rates.
The others are Citigroup Inc, JPMorgan Chase & Co, Royal Bank of Scotland Group Plc andSwitzerland's UBS AG, though Barclays is the onlymember of that group licensed and regulated by Lawsky's office.
Lawsky said there would not be an all-encompassingsettlement for Barclays, and any resolution of the currencyprobe "would need a carve-out for electronic trading."
The electronic trading probe involves an examination intowhether Barclays' technology gave it a "last-look advantage" inhow trades are processed.
"You never know until it's done, but I think we're makinggood progress," he said.
In November, six banks paid a combined $4.3 billion incoordinated settlements with U.S., British and Swiss authoritiesover manipulation of foreign exchange rates.
Barclays pulled out of the November deal with Britain'sFinancial Conduct Authority and the U.S. Commodity FuturesTrading Commission at the last minute, as it sought to resolvethe probe with all regulators at once.
Transcripts of online chatroom conversations made publicthat month showed how traders shared confidential informationabout client orders and conspired to benefit their owntransactions.
Follow Reuters Summits on Twitter @Reuters_Summits (Aditional reporting by John McCrank; Editing by Soyoung Kimand Lisa Shumaker)
