I hate to keep going on about it but it strikes me that a bit of foresight on the part of the banks could have prevented compensation from becoming the political chew toy it is today. Right now the bonus issue is a public relations godsend for both US and UK governments looking to distract attention from their own challenges.

Lawmakers know full well that bonuses did not blow up the world economy, neither will compensation restrictions fix it. But massive bailouts bought them capital and one way they intend to spend this capital is in whipping up popular sentiment for political gain. Playing the robin hood card will probably help them less while hurting banks more than they expect.

Why didn't the banks anticipate that this would be an outcome of the bailouts last year and begin a well organized and proactive campaign to limit the backlash is a conundrum.