Bank of America, Citigroup, JPMorgan and other major U.S. banks aren't waiting for examiners from the SEC and the U.K.'s Financial Services Authority ("FSA") to investigate what steps banks and other large trading firms are taking to prevent rogue trading. It's common knowledge that UBS's trading scandal was due, in part, to deficient supervisory policies and procedures or internal controls, combined with the failure to implement established compliance practices.  So, if those issues exist at UBS, they most certainly exist elsewhere. Accordingly, compliance and legal staffs are on heightened alert to conduct massive examinations of their firms' compliance procedures for monitoring trading activities.  Besides being incentivized by an imminent regulatory investigation, the banks witnessed the major management shakeup and resignation of UBS CEO Oswald Grubel in the aftermath of that firm's discovery.  Nothing like learning from others' mistakes. FoxBusiness reports that press officials at the 3 banks named above wouldn't deny that reviews and underway.  And, while these reviews aren't complete, the results so far indicate that the banks' compliance procedures appear to be adequate. That said, these reviews are not just one-time projects.  They will remain top priorities for these banks for the foreseeable future.  Eventually, other fires will have to be put out, and that will be the only reason attention may be diverted from this business area. Going forward, big banks will continue to face two significant issues - as was the case with UBS.  First, even if compliance procedures are strong, there always will be the concern among banking regulators that these banks might be too big and unwieldy for management to control.   A lot of stuff can fall through the cracks. Secondly, complacency can set in because that's just human nature.  That is where a strong system of "checks and balances" and constant vigilance will pay off.  And that applies to financial firms of all shapes and sizes.  As a Citigroup spokesman said:  "We are constantly working to improve, manage and monitor the compliance and controls process." Think of it as "an annuity for compliance officers."  [FoxBusiness, 10/7/11]