JPMorgan Chase Paper Essay

In the summer of 2012, JPMorgan heed, the largest confidential information U. S. bank, announced trading losses from decoratement decisions make by its Chief Investment Office (CIO) of $5. 8 billion. The Securities and Exchange agency ( hold onorsement) was provided falsified first quarter reports that hidden this massive loss. hold forth how administrative agencies like the Securities and Exchange focal point (SEC) or the Commodities Futures Trading missionary station (CFTC) take exploit in order 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 leading U.S. bank, make known trading losses from investment verdict made by its Chief Investment Office (CIO) of $5. 8 billion. The Securities and Exchange direction (SEC) was provided falsified first quarter reports that concealed this enormous loss. The duty of the U. S. Securities and Exchange Commission is to protect investor s, uphold carnival, organize, and efficient markets, and facilitate capital formation. Obligatory open companies to disclose meaningful financial information to the public is an effective melt down toward the SEC takes in order to assure the securities of this nation (U. S.Securities and Exchange Commission). These serve 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 target includes the promotional material of competitive and efficient futures markets and the protection of investors against manipulation, abusive trade scheme and maneuver (U. S. Securities and Exchange Commission). Both the SEC and the CFTC played a role in investigating the massive trading losses in the case of JPMorgan Chase.The SECs investigation could only focus on the suitability and completeness of JPMorgan Chase financial reporting and other public disclosures. However SEC death chair Mary Schapiro stated that her agencys investigation is limited, because the trades happened in divisions of the banking ogre that arent subject to SEC regulation (CNN Money). The leader of CFTC, Gary Gensler, give an public opinion that JPMorgans losses are worth looking into, because as a U. S. bank, it is an entity with direct admission to the Federal Reserves discount windowpane and federal deposit insurance (CNN Money).Determine the elements of a valid contract, and establish how consumers and banks each put on a duty of expert faith and fair transaction in the banking relationship. A contract is a goodly compulsory promise or set of promises (Bagley, C. 2013). If this promise is broken, either society bear on can be de jure responsible and take the other party to court. There are four basic elements in the creation of a valid contract. The first consist of an agreement between the parties involved, by an presented sally and acceptance.The second states that the parties promises must 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 purpose (Bagley, C 2013). The duty of good faith and good dealing is implied in every contract. In recent years the mortgage perseverance has been seen as a prime example of how consumers and banks need to better picture and adhere to duty of good faith and good dealings.Consumers had the responsibility of misgiving the contracts involved in borrowing the money needed for their homes. Banks had the responsibility of astute who they should lend money to, and the conditions of the rates involved on the loans provided. Relationships between banks and consumers could have been avoided if the duty of good faith and good dealing was implemented on contracts granted between the banks and consumers. Compare and contrast the differences between tendencyional and heedless tort actionsA tort is a body of rights, and obligations that is applied by courts in civil proceedings to provide relief for mortals who have suffered harm. civil wrong means civil wrong resulting in injury to a person or property (Bagley, C. 2013). An intentional tort action is when there is intent to cause harm to a person or property . wise(p) torts include things like assault and battery, slander, false imprisonment, libel, and intentional infliction of aroused distress. These torts are often, but non always, the case that an intentional tort is similarly a criminal act (Bagley, C. 2013).A inattentive tort action is when a person is careless(p) to his or her own actions and did not reckon to cause harm to a person or property. Even though that person is negligent, he or she is still held legally responsible because of their careless actions. To illustrate the difference between negligence and an intentional tort, lets lo ok at an example with two different scenarios. The plaintiff is a woman named Ramona, and in both cases, she is suing because of a broken leg. state of use 1 Ramona is base on balls down the aisle of Wal-Mart store when she slips and waterfall on a puddle of cooking oils.The proprietor 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 presumable 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 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 defendants can be held liable for Ramona injuries, but for different cases. The store owner is liable because he failed to clean u p the spilled of oils, which a reasonable person would have done. The attacker is liable because they intentionally caused harm to Molly by pushing her. dissertate the tort action of Interference with Contractual Relations and Participating in a Breach of Fiduciary duty and, if the bank youve chosen were to make out as JP Morgan did, would you be able to prevail in such a tort action.The interference with contractual relations defends the right to enjoy the benefits of legally binding agreements (Bagley, C 2013). The existence of a contract at the sentence of the assumed interference is what separates tortuous interference with contract from the more conglomerate to establish tortuous interference with prospective contractual relations. If good railyard exist for the interference, such as the case with JP Morgan, then the defendant would not be liable. With the advent of mobile banking, discuss how banks have protected the software program 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 security of your information and bank accounts. Banks hold a liability of making sure the consumers security is protected, and if dishonored most banks lead guarantee up to a 100 percent against theft of your cash in hand from online banking services. While many worry about online banking, theres good news that mobile banking is to some extent secure just for the reason that there are so numerous variations of banking apps and methods in the market. A bandit has no way of predicting which technique a possible victim skill use.Cited Work U. S. Commodity Futures Trading Commission. (n. d. ). Retrieved borderland 1, 2013, from U. S. Commodity Futures Trading Commission http//www. cftc. gov/index. htm CNN Money (n. d. ). Retrieved March 1, 2013, from http//money. cnn. com/2012/05/22/news/economy/jp-morgan-senate/index. htm U. S. Securiti es and Exchange Commission. (n. d. ). Retrieved March 1, 2013, from U. S. Securities and Exchange Commission http//www. sec. gov/ Bagley, C. (2013). Managers and the Legal Environment Strategies for the 21st Century, 7th Edition. mason South-Western, Cengage Learning.