It is time to make Britain’s banks an offer they cannot refuse. Politicians, regulators and the media promise to shut up about seven-figure bonuses and opulent lifestyles; in return the banks agree to reimburse taxpayers for the subsidy they receive from the public purse.

Management consultant types would call this a win-win, and economists a market-based solution. The banks stand on their own financial feet; and critics disavow a public interest in their pay packets. The bankers join the ranks of footballers, rock stars and hedge fund chiefs: the only losers from telephone-number bonuses are soft-headed shareholders and investors.

We know the banks want to quell the controversy. Bob Diamond, the US investment banker who has just taken over as chief executive of Barclays, has put himself in the vanguard of the “let’s draw a line” brigade. In London, Mr Diamond told members of parliament the other day that it was time to take off the hair-shirt of remorse.