Labour MP paedophile allegations
Citibank, HSBC, JPM, RBS and UBS were fined a combined total of $3.4bn by the FCA and CFTC Getty

Recent regulatory settlements involving five big banks over manipulation of the foreign exchange market, show that the banking industry is still in need of major reformation, a group of British politicians has warned.

In a statement, influential MP and chairman of Britain's Parliamentary Commission on Banking Standards (PCBS), Andrew Tyrie, said stricter rules for the financial system must not be "diluted" and tougher reforms still need to be put in place.

"These reforms are badly needed to tackle serious lapses in banking standards and a collapse of trust in the industry," said Tyrie, who also leads the Treasury Select Committee.

"The forex scandal has exposed how much work there is still to do. Any attempts to 'game' the rules once in place should be met with strong action by the regulators.

"[Stricter banking rules] need to be fully implemented. They certainly must not be diluted."

On 13 November, the FCA and CFTC fined five banks - Citibank, HSBC, JPM, the Royal Bank of Scotland (RBS) and UBS - a combined total of $3.4bn (£2.1bn, €2.7bn) for their role in the manipulation of the foreign exchange market.

Traders from the five banks shared information about currency orders using laddish pseudonyms and shared virtual high-fives.

Their discussions in private chatrooms shine a light on activities the FCA described as "[putting] their banks' interests ahead of those of their clients".

Comments like "lets double team em", "well done lads" and "yeah baby" litter discussions that at time appear to be exercises in back-slapping.