After President Obama denounced Wall Street bonuses as "shameful" on Thursday, the way was clear for the rest of the political class to pour gasoline on the bonfire being prepared for the offending bankers. Senator Chris Dodd, former "friend" of mortgage banker Angelo Mozilo, ranted that the Treasury should somehow confiscate the bonuses.

Senator Claire McCaskill rolled out legislation to put a compensation cap of $400,000 on executives whose firms receive bailout money. She also proposes creating a court to restrain their...