UK says bank bonuses should reflect state help

Britain's banks should consider their wider responsibility to society and "soft" government guarantees that have helped to support them before setting this year's bonus payouts, the financial regulator said on Monday.
As bonuses for bankers look set to jump in 2009, the comments were seen as a warning to Barclays and HSBC, who have avoided direct government help, as well as part-nationalised banks like Royal Bank of Scotland.
"There is this wider question as to whether, given banks are arguably still in receipt of some form of underpinning, soft guarantee, they should recognise this in their bonus policies," Financial Services Authority (FSA) Chief Executive Hector Sants told BBC radio. Politicians also stepped up their warnings that banks should show restraint amid talk that a "windfall tax" could be considered if the industry fails to keep pay in check.