There are rumours circulating this morning that Cameron has cleared his diary and is consulting with lawyers and advisors over what to do. As Iain Dale notes, this could be the much desired Clause IV moment for the Tories. If Cameron acts against those named this morning, and he does so decisively, then he will, I think, clinch the deal with the electorate that he is a leader and, to put it bluntly, won't take any shit. MY guess is that by the end of the day we shall see some sort of graduated censure for those MPs that have been highlighted by the Telegraph.
As Tim Montgomerie noted, "[t]here is no clear line between right and wrong here - only a messy gradation of greediness within rules set by MPs to suit themselves." This means I think that censure is going to have be weighted against the perceived wrongdoing somehow. Think of it like sentencing guidelines for crimes. The very worst offenders, and I will no doubt be wrong on this, could see the whip removed, pressure on their Associations to deselect them, and demands that money is paid back. At the other end of the scale, public apologies and just public payback of funds and a return to Back bench.
The key here is going to be how ruthless Cameron is with those on his Front bench team. The public anger over this row is, arguably, unprecedented though, so the idea that anyone censured and demoted could successfully attack Cameron from the Back bench on the issue wouldn't fly well with the public and Cameron would likely receive admiration and respect for taking them on. This does of course assume that Cameron knows there are no elephant traps about the order of his own house waiting to surface.
A metaphorical blood letting and purge would certainly do wonders at defining him as a man of principle and action in the mind of the electorate.