Yet given the stakes and compared with the mighty Fed, CEBS is fathoms out of its depth.

ECONOMIST: Europe's pressured banks

Both points might seem obvious to non-bankers but one can see why CEBS felt it necessary to spell this out.

WSJ: Bankers Are Still There for Bashing

In another big country, the regulator says it just plugged the CEBS scenario into its model and sent them the results.

ECONOMIST: Europe's pressured banks

The CEBS stresses that variable remuneration "should not pose detriment to the timely building up of capital base" nor, where applicable, to the timely exit from government support.

WSJ: Bankers Are Still There for Bashing

Some say the U.K. should not move unilaterally but CEBS in its new guidelines, which take effect from Jan. 1 for major banks, insists that shareholders should be given adequate information on which to judge remuneration policies.

WSJ: Bankers Are Still There for Bashing

In Europe the economic scenario is being set by the ECB and the European Commission, which is then interpreted by the Committee of European Banking Supervisors (CEBS), a quango of regulators run with a skeletal staff, which in turn liaises with national supervisors in each country.

ECONOMIST: Europe's pressured banks