Homework Question on JP Morgan Chase
- In the summer of 1012 JPMorgan Chase, the biggest U.S. bank,announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEF) was provided falsified first quarter reports that concealed this massive loss.
- Discuss how administrative agencies like the Securities and Exchange Commission(SEC) or the Commodities Futures Trading Commission (CFTC) take action in order to be effective in preventing high-risk gambles in securities/banking, a foundation of the economy.
- Determine the elements of a valid contract, and discuss how consumers and banks each have a duty of good faith and fair dealing in the banking relationship.
- Compare and contrast the differences between international and negligent tort actions.
- Discuss the tort action of ” Interference with Contractual Relations and Participating in a Breach of Fiduciary duty” and, if Bank of America were to behave as JPMorgan did, would you be able to prevail in such a tort action.
- With the advent of mobile banking, discuss how banks have protected the software that allows for online transactions to occur through automation
Homework Answer on JP Morgan Chase
In 2012, one of the biggest bank in the U.S known as JPMorgan announced that it had incurred losses that amounted to 5.8 billion dollars from investment decision that was made by the chief operating officer of the bank. The goal of the United States Securities and Exchange Commission is making sure that markets are running efficiently and in a systematic and just manner, protecting wellbeing of the investors, and to assist in the capital formation process.
As part of its responsibilities, the Securities and Exchange Commission require all the companies that are listed to provide all monetary vital data to the government as a way of safeguarding investors in the country (U.S. Securities and Exchange Commission, 2013, p. 1). This enables the SEC to safeguard investors against extreme danger gambles, and allow them to come up with informed decisions on the type of company’s stock that they can invest in.
The responsibility of the Commodity Futures Trading Commission is to direct and control commodity futures and alternative markets. Its goals include safeguarding investors from exploitations, fraud, encouraging a competitive and effective prospect markets, and offensive trade practices. Both SEC and CFTC went on to find an audit that was related to huge losses that JP Morgan Chase had incurred.