* Bank monitors sought as part of forex market probe -source
* Monitors to review historical conduct, current operations
* Deutsche Bank says cooperating with investigators (Recasts with information from source)
July 29 (Reuters) - New York's banking regulator is seekingto place government monitors in the U.S. offices of DeutscheBank AG and Barclays Plc as part of itsinvestigation into the foreign-exchange market, a personfamiliar with the matter said.
The New York Department of Financial Services was pushing toinstall monitors at the two banks to review historical conductand current operations, the person said.
The state regulator this year joined a global probe intopossible manipulation of the $5.3 trillion-a-day currencymarket.
The New York investigators expect to reach an agreement soonwith the banks to install on-site monitors, the Wall StreetJournal said citing people familiar with the matter. (http://on.wsj.com/UzWqy1).
Deutsche Bank and Barclays have been selected to hostmonitors because data collected point to the greatest potentialproblems there, the Journal said.
Barclays declined to comment and Deutsche Bank did notaddress questions about monitors.
"The bank is cooperating with those investigations, and willtake disciplinary action with regards to individuals ifmerited," a Deutsche Bank spokeswoman said in an email toReuters.
A spokesman for the regulator was not immediately available. (Reporting by Karen Freifeld in New York and Anil D'Silva inBangalore; Editing by Rodney Joyce)
Barclays (BARC)
