The Libor interest rate benchmark scam is the most damaging to ever happen in the UK banking sector.
This is according to Andrew Tyrie - chairman of the Treasury Select Committee - who was speaking after he questioned former Barclays chief executive Bob Diamond about his involvement in the scandal.
He remarked it seems that more lenders were involved in this illegal practice, but so far Barclays has been the only institution to own up.
"The reputation of Britain's financial services industry has been severely tarnished, albeit unfairly for the overwhelming majority unconnected with the scam," Mr Tyrie stated.
He went on to note the whole debacle has led to the public's confidence in the banking industry being further eroded.
The politician observed the process of restoring the reputation of the sector will begin immediately, as parliament will find out what went wrong and who is to blame for it.
By Claire Archer