JPMorgan Chase Essay

JPMorgan Chase Essay

JPMorgan Chase is one of the oldest and many respected financial institutions in the United States. Yet , during the summertime of 2012 Chase released trading loss and negative investment decisions that ended in a lack of approximately $5. 8 billion. Not only did they statement this considerable loss they admitted to falsifying their particular first one fourth reports, were they exactly where attempting to conceal the massive reduction. Three months ahead of this event JPMorgan Chase was viewed as the best American traditional bank. The first question being discussed in this paper will probably be what actions can Management Agencies such the Securities and Exchange Commission (SEC) and or the Commodities Options contracts Trading Commission payment (CFTC) decide on prevent high risk gambles in securities/banking that happen to be one of the main cornerstones of this country’s economy. Based on the SEC, their “main quest is to shield investors, to keep fair, orderly, efficient markets and help capital formation” (www.sec.gov) A good way that SEC does this is by requiring community companies to disclose meaningful economic information towards the public to assist the public choose companies will be the best to purchase. In response for the JPMorgan Run after revelation SECURITIES AND EXCHANGE COMMISSION'S Chairperson Jane Shapiro told the United states senate Banking Committee that “her agency’s investigation is limited, because the trades took place in divisions of the banking giant that are not subject to SEC regulation”. In addition, she stated that “we (the SEC) would not have any kind of direct oversight or knowledge of the transactions”. In addition to the previously mentioned statements Ms. Shapiro mentioned that “the SEC’s research would target the appropriateness and completeness of the entity’s (JPMorgan Chase) financial reporting and other open public disclosures” (Liberto, 2012). Subsequent I will discuss the Item and Options contracts Trading Commission’s (CFTC) main purpose and some of its other responsibilities. The Asset and Futures Trading Commission’s (CFTC) main goal is to control commodity currency futures options markets. The goals include the promotion of competitive and efficient futures markets and the protection of investors against manipulation, violent trade methods and fraudulence (www.sec.gov). Gary Gensler, chairman of the CFTC told the Senate Financial Committee that “he couldn’t provide particular information about the analysis, but he did say that he 1st learned about the questionable trading from press reports. He also stated that the CFTC does not have regulators on the ground to look at lender trades yet. Chairman Gensler also told the Financial Committee that currently, the American open public is certainly not protected in that way (e. g. having government bodies looking at the trades as they happen) (Liberto, 2012). Regulators have been attempting for months trying to puzzle out who should be included in a fresh crackdown on swaps and derivatives. Trades and derivatives are sophisticated financial gambling bets derived from other financial products. Gensler made it clear that when the Dodd-Frank Wall Street reforms will be fully executed it will be against the law for JPMorgan Chase to make the kinds of deals that ended in the $5. 8 billion dollars loss. He also solved that Dodd-Frank allows for deals made to hedge against “individual and combination positions” – not to safeguard against foreseeable future economic deficits, as the JPMorgan deals have been referred to (Liberto, 2012). Next I will cover the elements of a legitimate contract, along with discuss how consumers and banks each have a duty of god trust and good dealing in the banking romantic relationship “A deal is a legally enforceable promise or pair of promises. If the promise is definitely broken, the person to whom the promise was mad – the promise – provides certain legal rights against the person who made the promise – the promisor” (Bagley, 2012). There are some basic elements to a agreement and they are: 1) offer and acceptance, 2) consideration, 3) both parties must have the capacity to into a deal, 4) the contract will need to have a legal goal. “The offer is a outward exhibition of willingness to enter into a bargain that justifies another individual in understanding that his or her assent will conclude the bargain” (Bagley, 2012). Approval indicates the receiving person’s willingness to into the contract proposed in the offer (Bagley, 2012). Account is something of value that is provided by both parties (Bagley, 2012). Lastly, a valid deal requires that both parties have the capacity to enter into the arrangement (Bagley, 2012. Next I will discuss the work of our god faith and fair dealing in the consumer/banking relationship. Just before 1929, Massachusetts expressly provided good faith was applicable for all contracts. In 1929, the Supreme Legislativo Court, in addressing a breach of contract assert under a choice agreement to get the getting stock within an oil-producing leasehold, expressly explained, for the first time, that there was an obligation of good hope and good dealing in almost all contracts. The court emphasized that a business contract “is to be viewed as a business transaction created by functional men to complete an honest and straightforward end”. From 1936, the work of good trust was defined as a covenant “that not party shall do anything that will have the a result of destroying or perhaps injuring the ideal of the other party to receive the fruits of the contract”. This “fruits” articulation from the duty great faith is still intact today and is frequently quoted since the operative standard (Weigand, 2013). The next topic should be to compare and contrast the differences between intentional and at fault tort activities. There are several types of intentional torts and they are: torts against persons, deliberate torts that involve personal property, and deliberate torts with regards to economic interest and business relationships. In addition there are several types of at fault torts. A pair of which are: responsibility to relief and duty to guests. Intentional torts against incorporate battery, attack, false imprisonment, intentional infliction of emotional distress, defamation, and attack of personal privacy. The key word in all of those intentional torts is intent or purpose to harm another. Deliberate torts against property incorporate trespass of land, hassle, conversion, and trespass to personal property. Objective and goal are also for what reason these are deemed intentional. The key difference among these two atteinte is that one is against people and the various other is a improper use of another’s property. A person has to purpose commit these types of acts. Negligent torts include different types of obligations. Duty can be when a person with a legal duty to another is required to action, reasonably, beneath the circumstances to stop harming your partner. Some examples on this are work to recovery and responsibility to guests. Duties are basically a duty that one person is legally bound to perform another. In contrasting the two types of atteinte we find that intentional torts are dommage that people devote against others. Negligence likewise others but it is a failure to perform that creates the injury or unjust action. An example of this comparison is the deliberate tort of battery and failure to execute the duty to rescue. When I commit battery pack I cause harm to another, when I fail to perform the duty to rescue the other individual also endures harm but it really is because I actually failed to work. In contrast deliberate torts are actions fully commited against an additional and carelessness is when I fail to do something on an additional. Next I will discuss the tort action of “interference with contractual relations and participating in a breach of fiduciary duty”. Interference with contractual relationships protects the justification to enjoy the benefits associated with legally binding agreements. It provides remedy when the defendant purposely induces someone else to break a contract with a plaintiff. Interference with contractual relations requires intent to interfere. The existence of a contract is the difference among tortuous disturbance and the harder to demonstrate tortuous disturbance with potential contractual associations. The most famous circumstance of tortuous interference was Pennzoil versus Texaco which in turn occurred in 1983 (Bagley, 2013). Similarly a defendant whom knowingly participates in, or induces a breach of fiduciary work by one other commits the tort of participation within a breach of fiduciary duty. Lastly, I really believe that if perhaps god environment exist intended for the disturbance, such as is available in the JPMorgan Chase circumstance then I should be able to prevail inside the tort actions. Lastly, Let me cover how banks guard the software that permits for on the web transactions. Most banks guard the customers who have participate in on the web transactions through what is known as the Online Bank Guarantee. This protection covers your bank and personal info. It is the banking companies responsibility to guarantee the customers safety while the client engages in online transactions. Generally in most if only some case the customer is totally covered in the case of theft of funds. Certainly one of main protection for software protection is definitely through complex encryption devices. Another deterrent is simply the vast amount society that is available for online financial. So between wide array society and security systems on the net banking transaction are relatively safe. From this paper I have covered a lot of topics plus they are as follows: What actions Administrative Agency’s decide to try be effective in preventing high-risk gambles in securities and banking, the elements of a legitimate contract as well as the duty great faith and fair interacting between banking companies and buyers, comparing and contrasting deliberate and at fault torts, the tort action of “Interference with contractual relationships and engaged in a break of fiduciary duty, and lastly, how banks protect the application that they make use of for on the net banking.

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