Barclays may settle action over Libor probe

LONDON (Reuters) - Britain's BARCLAYS (BARC.LO) may have to settle legal and regulatory action against it relating to a global investigation into possible manipulation of interbank lending rates.

Barclays said on Friday it was in talks about a "potential resolution" with some of the authorities who had advised the bank that proceedings could be taken against it.

Britain's Financial Services Authority, the Securities and Trading Commission, the European Commission and the Department of Justice are among authorities who have approached banks around the world to investigate their involvement in Libor lending rates amid suspicion they may have been fixed.

The London Interbank Offered Rate, known as Libor, is a daily poll that asks a group of banks at what rate they think they will be able to borrow. Authorities are examining whether traders at the banks tried to influence whether the rate went up or down in order to profit on bets on the direction it would go.

Since the start of the banking crisis in 2007, Citigroup , HSBC , RBS and UBS have been involved in the Libor investigation. Several have suspended traders but so far there have been no criminal charges.

"Barclays has been informed by certain of the authorities investigating these matters that proceedings against Barclays may be recommended with respect to some aspects of the matters under investigation, and Barclays is engaged in discussions with those authorities about potential resolution of those aspects," the bank said in its annual report.

"It is not currently possible to predict the ultimate resolution of the issue," it added.

(Writing by Sophie Walker; Editing by Alexander Smith)