[ by Howard Haykin ] When E.F. Hutton Talks, People Listen. Back in 1979, Wall Street firms boasted that their financial advice and investment tips was so highly sought after that complete strangers would strain necks and contort bodies in order to listen in on private conversations featuring their recommendations. In 2012, the era of banking scandals and rampant insider trading - along with the success that prosecutors have had in convicting wayward individuals - have put bankers on their guard, and caused firms to heighten efforts in an effort to minimize the chance that their personnel might unintentionally leak sensitive information while in social situations. Compliance and legal teams now brow-beat ... investment bankers on what they can say and not say in public situations - particularly at local watering holes.  Bankers also are being trained on how to conduct themselves in public, while guarding against moments of weakness.  Age-old proverbs, like "Silence is Golden," and "Discretion is the Better Part of Valor" have become the bankers' new mantras. "Everyone is more paranoid, that's for sure," said one department head at a European investment bank, where the trading floor is festooned with posters reminding staff to report any suspicious behavior.   At his bank and at least one other European firm, executives said they were being asked to take part in an increasing number of behavioral coaching sessions, including simulations of pub outings. These were mainly done via webcasts, where participants act out conversations with colleagues where the talk turns to clients or office gossip, two bankers said.  "You have to turn around and say, 'No, let's not talk about that'," said one. Such simulations and extensive compliance checks, including regular sweeps of emails and phone calls, are part of the new reality since the 2008 financial crisis, as watchdogs like Britain's Financial Services Authority replace their now pilloried light-touch supervision with a more active and intrusive stance. Head traders and bankers regularly encourage the staff that, with regard to notes of discussions in key meetings, or when in possession of sensitive information about clients, they should be limit with whom such information is shared. All this effort is sure to lead to a different working culture at respective firms - which is not the worst thing in the world - even though some complain that controls and restrictions will limit their ability to do business.  Managing directors and other senior level personnel are not listening to such complaints - especially because they themselves and the level of supervision are under significantly more scrutiny. For further details, go to:  [Reuters, 8/27/12].