Forex scandal "shows need to shake up banks" The foreign exchange scandal showed the need to maintain pressure on the Government and regulators to implement plans to shake-up the banking sector, the chairman of the Treasury Select Committee has said. Andrew Tyrie and his fellow former members of the Parliamentary Commission on Banking Standards warned that the programme of reform they put forward must not be watered down. He said the "appalling misconduct" in the forex market exposed how much more work there was to do to improve standards in the City. Mr Tyrie said the commission's proposals for ring-fencing banks" retail operations to keep them apart from risky investment arms were "particularly vulnerable." The comments came as Andrew Haldane, chief economist at the Bank of England, said he believed the Bank might still be suffering from "blind spots" over the banking industry in the wake of the financial crisis. He will say in a speech in London tonight that the Bank's monetary policy committee did not devote enough time to discussing banking issues in the run up to the crisis, something that in hindsight "looks like a collective analytical blind spot." He will argue that, despite all the changes to the Bank's policy responsibilities since the crisis, "it is too soon to tell whether any remaining blind spots remain." Also, in his view, "improvements to the Bank's forecasting process have some considerable distance still to travel."