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Though each state has some financial rules and regulations, the main set of regulations that financial institutions must abide by is located in chapter 12 of the Code of Federal Regulations.
Should a financial institution find itself in a lawsuit because of a breach of a financial rule or regulation, depending on the type of regulation broken, it must participate in the litigation. Part of the litigation, whether the matter settles or goes to trial, is the discovery phase of litigation. Once a complaint and counter complaint are filed, and sometimes before a counter complaint is filed, the parties involved must participate in the discovery process.
Discovery is exchanged between the attorneys, and can be extensive. Documents in the form of paper and/or electronic documents are exchanged. Prior to sending to opposing counsel, this documentation must be reviewed for attorney-client privileged documents or documents falling under other confidentiality laws. An experienced, temporary document review attorney can be retained to review documents for confidentiality issues, thus saving a firm countless hours (time and money) in reviewing documents.