JPMorgan Chase Paper Essay

In the summer of 2012, JPMorgan Chase, the largest preeminent U. S. bank, announced trading losings from enthronisation decisions made by its Chief enthronization Office (CIO) of $5. 8 billion. The Securities and put back Commission ( sulfur) was provided falsified start quarter reports that hidden this massive loss. Discuss how administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures commerce Commission (CFTC) take action in commit to be effective in preventing high-risk gambles in securities / banking, a foundation of the economy. In the summer of 2012, JPMorgan Chase, the largest leave behinding U.S. bank, sack up known trading losses from investment verdict made by its Chief investment funds Office (CIO) of $5. 8 billion. The Securities and Exchange Commission (SEC) was provided falsified initiative quarter reports that concealed this enormous loss. The traffic of the U. S. Securities and Exchange Commission is to protect inv estors, uphold fair, organize, and efficient markets, and ease capital formation. Obligatory public companies to disclose meaningful pecuniary maintaination to the public is an effective ingrain toward the SEC takes in order to assure the securities of this commonwealth (U. S.Securities and Exchange Commission). These assist investors prevent high-risk gambles and allows them to make the right decisions when deciding on which companies to invest in. The commodity Future Trading Commission regulates the product futures and options markets. Its ass includes the promotion of competitive and efficient futures markets and the protection of investors against manipulation, offensive trade scheme and fraud (U. S. Securities and Exchange Commission). some(prenominal) the SEC and the CFTC played a role in investigating the massive trading losses in the typeface of JPMorgan Chase.The SECs investigation could lonesome(prenominal) focus on the suit powerfulness and completeness of JPM organ Chase financial reporting and other public disclosures. However SEC Chairman Mary Schapiro stated that her agencys investigation is limited, because the trades happened in divisions of the banking giant that arent adequate to(p) to SEC regulation (CNN Money). The leader of CFTC, Gary Gensler, give an impression that JPMorgans losses are worth hold backing for into, because as a U. S. bank, it is an entity with direct admission to the national Reserves discount window and federal official deposit insurance (CNN Money).Determine the elements of a reasoned resolve, and discuss how consumers and banks each have a duty of heavy faith and fair dealing in the banking relationship. A beat is a de jure incumbent on(predicate) promise or set of promises (Bagley, C. 2013). If this promise is broken, all party involved can be legally responsible and take the other party to court. on that point are four basic elements in the entry of a valid contract. The first consist of a n covenant among the parties involved, by an presented offer and acceptance.The second states that the parties promises mustiness be supported by something of worth, known as consideration. The third advises both parties must have the ability to enter into a contract. The fourth element states the contract must have a legal calculate (Bagley, C 2013). The duty of practised faith and unassailable dealing is implied in every contract. In late years the mortgage industry has been seen as a prime example of how consumers and banks need to better conceive and adhere to duty of broad(a) faith and effectual dealings.Consumers had the responsibility of understanding the contracts involved in acceptation the money needed for their homes. Banks had the responsibility of knowing who they should pass on money to, and the conditions of the rates involved on the loans provided. Relationships among banks and consumers could have been avoided if the duty of good faith and good dealing was implemented on contracts granted amidst the banks and consumers. Compare and contrast the differences between designed and derelict civil wrong actionsA civil wrong is a automobile trunk of rights, and obligations that is applied by courts in civil minutes to provide relief for persons who have suffered aggrieve. Tort int prohibit civil wrong resulting in injury to a person or property (Bagley, C. 2013). An intentional tort action is when there is intent to cause injure to a person or property . wise to(p) torts include things like assault and battery, slander, false imprisonment, libel, and intentional infliction of emotional distress. These torts are often, but non always, the case that an intentional tort is also a criminal act (Bagley, C. 2013).A negligent tort action is when a person is careless to his or her own actions and did non intend to cause harm to a person or property. Even though that person is negligent, he or she is cool off held legally responsibl e because of their careless actions. To illustrate the difference between negligence and an intentional tort, lets look at an example with two different scenarios. The complainant is a woman named ramona, and in both cases, she is suing because of a broken leg. state of affair 1 Ramona is walking down the aisle of Wal-Mart inventory when she slips and waterfall on a puddle of cooking oils.The possessor of the store was negligent for not cleaning up the spill. Even though the store owner did not intend for Ramona to get hurt, he is still liable for her broken led because his negligence lead to her injury. Scenario 2 Molly is walking to her car when she is assaulted by a man who wants to steal her wallet. The assailant shoves her to the ground, and she breaks her articulatio radiocarpea as a result of the attack. The police later(prenominal) catch the assailant, and Molly sues him for her injuries. In both cases the end result is the same Ramona end up with a broken leg.Both defe ndants can be held liable for Ramona injuries, but for different reasons. The store owner is liable because he failed to clean up the spilled of oils, which a reasonable person would have done. The aggressor is liable because they intentionally caused harm to Molly by pushing her. Discuss the tort action of folie with Contractual Relations and Participating in a Breach of Fiduciary duty and, if the bank youve elect were to behave as JP Morgan did, would you be able to endure in such a tort action.The limp with contractual relations defends the right to enjoy the benefits of legally binding agreements (Bagley, C 2013). The existence of a contract at the time of the assumed interference is what separates elusive interference with contract from the more complicated to entrap tortuous interference with prospective contractual relations. If good grounds exist for the interference, such as the case with JP Morgan, then the defendant would not be liable. With the advent of mobile ban king, discuss how banks have protected the packet that allows for online transaction to occur through automation.The majority banks inform consumers that they are protected by the Online Banking Security Guarantee, which covers the certification of your information and bank accounts. Banks hold a indebtedness of making sure the consumers security is protected, and if dishonored about banks will guarantee up to a cytosine percent against theft of your funds from online banking services. While umteen worry about online banking, theres good news that mobile banking is to some extent strong just for the reason that there are so numerous variations of banking apps and methods in the market. A thief has no way of predicting which technique a possible victim might use.Cited Work U. S. Commodity Futures Trading Commission. (n. d. ). Retrieved shew 1, 2013, from U. S. Commodity Futures Trading Commission http//www. cftc. gov/index. htm CNN Money (n. d. ). Retrieved establish 1, 2013 , from http//money. cnn. com/2012/05/22/news/economy/jp-morgan-senate/index. htm U. S. Securities and Exchange Commission. (n. d. ). Retrieved troop 1, 2013, from U. S. Securities and Exchange Commission http//www. sec. gov/ Bagley, C. (2013). Managers and the Legal Environment Strategies for the twenty-first Century, 7th Edition. Mason South-Western, Cengage Learning.