New York won't settle with Barclays soon over forex algorithms

By Karen Freifeld and Suzanne Barlyn

April 21 (Reuters) - New York's banking regulator won'tsettle with Barclays Plc over foreign exchange tradingin the coming weeks unless the bank agrees to carve out of thedeal the possible rigging of rates through computer programs,the agency's superintendent said on Tuesday.

"There are two options: You can do a settlement in May witha carveout, or you can do a settlement later without acarveout," Benjamin Lawsky, superintendent of New York'sDepartment of Financial Services said.

Barclays is among a handful of banks expected to come toterms in the coming weeks with the U.S. Department of Justiceand other authorities over the manipulation of foreign exchangerates. (Reporting By Karen Freifeld; Editing by Chizu Nomiyama)