A recent article in Computerworld discussed how the Wall Street crisis brings lax e-discovery law enforcement to light.  In summary, a number of experts are noting that lax enforcement of records and data retention laws, combined with inadequate oversight, is a factor in the recent meltdown of the financial services industry, and predicting, as I have predicted, that Congress is likely to respond with additional laws that may not be well-thought out or well-crafted.

I might observe also that financial institutions in any way involved in the sub-prime mortgage mess, derivative securities issues or credit default swaps are likely to find the adequacy of their records management and retention programs (as well as their ability to conduct e-discovery) severely tested in coming months by litigation. There will be a tsunami of lawsuits seeking to untangle things, and I’ll go on record as predicting that many organizations will not be up to the test due to deficient records and information management programs and practices.