Here are reactions to the fines:

GEORGE OSBORNE, UK FINANCE MINISTER:

"Today we take tough action to clean up corruption by a few so that we have a financial system that works for everyone. It's part of a long term plan that is fixing what went wrong in Britain's banks and our economy.

"A number of traders have been suspended or fired, and the Serious Fraud Office are conducting criminal investigations. The banks that employed them face big fines - and I will ensure that these fines are used for the wider public good."

MARTIN WHEATLEY, CHIEF EXECUTIVE OF FINANCIAL CONDUCT AUTHORITY

"The FCA does not tolerate conduct which imperils market integrity or the wider UK financial system.

"Today's record fines mark the gravity of the failings we found and firms need to take responsibility for putting it right. They must make sure their traders do not game the system to boost profits or leave the ethics of their conduct to compliance to worry about. Senior management commitments to change need to become a reality in every area of their business."

ANDREA LEADSOM, ECONOMIC SECRETARY TO THE TREASURY

"This behaviour by a few in the banks will quite rightly disgust taxpayers, who were forced to bail them out during the financial crisis.

"The government is determined to deal with the unacceptable behaviour we have seen in the financial markets, which is why I welcome the action that the Financial Conduct Authority has taken today. It shows that the tough regulatory system that we created is working."

ANDREW TYRIE MP, CHAIRMAN OF UK'S TREASURY COMMITTEE, FORMER CHAIRMAN OF THE PARLIAMENTARY COMMISSION ON BANKING STANDARDS

"This appalling misconduct – of LIBOR proportions and more – appears to have taken place from 2008 until late 2013. So even as banks were telling the Parliamentary Commission on Banking Standards that they had got to grips with past misconduct, their FX traders were manipulating benchmarks, sharing confidential client information and exploiting conflicts of interest.

"The senior leadership at these banks promised the Commission that this time they really were tackling poor behaviour. Clearly not vigorously enough. The spirit may being willing – particularly at the top – but the flesh remains weak. This settlement is yet more evidence that some banks may be too big to manage. It is evidence, too, of the need to implement fully the reforms proposed by the Vickers Commission and the Parliamentary Commission on Banking Standards."

MARK GARNIER, MP, MEMBER OF TREASURY COMMITTEE

"It seems to be business as usual – banks blow up, pay fines, and we move on. They just seem to be inventing new ways to break the rules. Half the problem is there aren't any rules.

"There are market abuse rules in place, but they haven’t kept pace with market changes.

"The fines are meaningless. 400 million pounds or 4 billion. There's only one fine that's important and that's if they're being taken out of traders' bonus pool. The individuals and those around them have to start feeling the pinch as well, not the banks."

JOHN MANN, MP, MEMBER OF TREASURY COMMITTEE

"It has been known for five years that this rigging of the market has been taking place and yet it has been allowed to continue. What is the point of being a chairman or chief executive of a large bank knowing this is going on and being incapable of dealing with it.

"This fraudulent trading has taken place over a five-year period during which time the taxpayer has had to provide massive financial assistance to the banking sector and we have clearly been taken for a fool by the bankers.

"What must happen now is that the bankers and senior managers are actually held accountable for this behaviour and RBS, the taxpayer-owned bank, must ensure that these fines are paid from its bonus pool and not simply taken from its profits."

MARSHALL BAILEY, PRESIDENT, ACI FINANCIAL MARKETS ASSOCIATION

"The improper behaviour that has come to light has no place in financial markets and it is crucial that lessons are learnt from these events to ensure it does not reoccur.

"The actions of this relatively small unrepresentative minority have damaged the reputation of the market in the eyes of the public, but this should not be seen to reflect the broader health of the FX industry, nor should it trigger wider structural reforms. The reality is that the FX market's structure is broadly effective and well designed, and plays a vital role in the flow of global commerce."

JAMES KEMP, MANAGING DIRECTOR OF THE GLOBAL FINANCIAL MARKETS ASSOCIATION

"Today's announcements from global regulators mark a significant moment for the FX industry. In highlighting major failures of control and conduct, the FCA and other regulators clearly identify key areas where standards have not been met.

"While investigations are still ongoing, the settlements and the proposed remediation programme provide a blueprint for the industry to move forward and to implement changes to restore confidence in the FX market."

"A great deal of work has already been done to strengthen the internal processes and procedures within banks, alongside increased training and education. The FX industry will continue to engage with regulators and supervisors to ensure the FX market ... works for the benefit of all its participants."

PHILIP HAMPTON, RBS (>> Royal Bank of Scotland Group plc) CHAIRMAN

"Two clients did express some concerns and, with hindsight, I don't think we followed them up terribly fully. We didn't eliminate these things as decisively as, with hindsight, we should have done.

"Today is a stark reminder of the importance of culture and integrity in banking and we will rightly be judged on the strength of our response.

"We have analysed millions of documents and are reviewing the conduct of over 50 current and former members of trading staff around the world as well as dozens of supervisors and senior management responsible and accountable for this business.

"As part of that process, we have already placed six individuals into a disciplinary process, three of whom are currently suspended, pending further investigation."

ROSS MCEWAN, RBS CHIEF EXECUTIVE

"To say I am angry about the misconduct described today would be an understatement. I hope you know I have zero tolerance for such failures."

BARCLAYS (>> Barclays PLC)

The bank said it had "engaged constructively" with regulators including the FCA and the U.S. Commodity Futures trading Commission (CFTC) and had considered a settlement from them "on closely similar terms" to those announced for other banks.

"However, after discussions with other regulators and authorities, we have concluded that it is in the interests of the company to seek a more general coordinated settlement.

"We will continue to engage with these authorities, including the FCA and CFTC, with the objective of bringing this to resolution in due course."

HSBC (>> HSBC Holdings plc):

"HSBC does not tolerate improper conduct and will take whatever action is appropriate."

UBS (>> UBS AG):

"UBS was the first bank to self-report potential misconduct and cooperate fully with authorities in their review of FX and related markets. The firm took appropriate disciplinary action against employees involved in the matter.

"In addition, and in line with its findings and regulatory requirements, UBS has introduced significant enhancements to the control framework of its FX business and the entire firm.

"UBS continues to cooperate with ongoing FX and related investigations, which include investigations of individuals involved."

JPMORGAN (>> JPMorgan Chase & Co.)

"The trader conduct described in today's settlements is unacceptable.

"In addition to making significant improvements to our systems and controls, we have spent a lot of time reinforcing the high standards of conduct expected of our people. Although the settlements acknowledge our progress, further training and enhancements are ongoing and will remain a priority."

CITIGROUP (>> Citigroup Inc)

"Citi acted quickly upon becoming aware of issues in our foreign exchange business and we have already made changes to our systems, controls and monitoring processes to better guard against improper behaviour."

(Compiled by Matt Scuffham and Steve Slater; Editing by Clare Hutchison and Freya Berry)