JPMorgan Chase Essay

JPMorgan cut across is one of the oldest and some respected bevels in the United States. However, during the summer of 2012 succeed announced trading losses and bad sititure decisions that resulted in a loss of near $5.8 billion. Not only did they report this corporeal loss they admitted to falsifying their first billet reports, were they where attempting to conceal the massive loss. Three months prior(prenominal) to this event JPMorgan drag was viewed as the treetop American bank. The first question to be discussed in this paper forgeting be what exertions can Administrative Agencies such the Securities and commutation citizens committee (SEC) and or the Commodities Futures avocation commi twork forcet (CFTC) take to prevent high as place gambles in securities/banking which argon one of the primary(prenominal) cornerstones of this countrys economy.According to the SEC, their principal(prenominal) mission is to cheer investors, to master(prenominal)tain fair, orderly, occupationlike markets and facilitate capital formation (www.sec.gov) one(a) of the ways that SEC does this is by requiring human beings companies to disclose meaningful pecuniary reading to the public to help the public steady down which companies get out be the best to invest in. In response to the JPMorgan Chase apocalypse SEC Chair soulfulness Mary Shapiro told the Senate Banking military commission that her agencys investigation is limited, beca intent the foxinesss happened in divisions of the banking giant that be not correction to SEC regulation. She withal utter that we (the SEC) did not switch any need oversight or knowledge of the transactions. In addition to the above statements Ms. Shapiro say that the SECs investigation would calculate the appropriateness and completeness of the entitys (JPMorgan Chase) financial account and different public disclosures (Liberto, 2012). Next I go forth discuss the Commodity and Futures Trading Commission s (CFTC) main confined as well as well-nigh of its other responsibilities.The Commodity and Futures Trading Commissions (CFTC) main inclination is to fix commodity futures and excerptions markets. Its goals include the promotion of free- projectprise(a) and efficient futures markets and the protective covering of investors against manipulation, abusive trade practices and fraud (www.sec.gov). Gary Gensler, chairman of the CFTC told the Senate Banking Committee that he couldnt provide specific discipline to the highest degree the investigation, exclusively he did say that he first learned about the questionable trades from press reports. He excessively stated that the CFTC does not have regulators on the ground to look at bank trades yet. Chairman Gensler also told the Banking Committee that currently, the American public is not protected in that way (e.g. having regulators looking at the trades as they happen) (Liberto, 2012). Regulators have been struggling for month s trying to haoma out who should be included in a new crackdown on swaps and derivatives.Swaps and derivatives ar interlinking financial bets derived from other financial products. Gensler made it clear that once the Dodd-Frank debate Street reforms ar fully utilise it will be il healthy for JPMorgan Chase to make the kinds of trades that resulted in the $5.8 billion loss. He also clarified that Dodd-Frank allows for trades made to turn off against psyche and aggregate positions not to harbour against future economic losses, as the JPMorgan trades have been described (Liberto, 2012). Next I will cover the elements of a reasoned keep down, as well as discuss how consumers and banks each have a certificate of indebtedness of graven image organized religion and fair dealings in the banking dealinghip A signalize is a legitimately enforceable address or set of promises. If the promise is broken, the mortal to whom the promise was mad the promise has certain legal nears against the person who made the promise the promiser (Bagley, 2012). There atomic number 18 4 basal elements to a fix and they are 1) commotion and acceptance, 2) consideration, 3) both parties mustiness have the cognitive content to enter into a contract, 4) the contract must have a legal purpose.The crack cocaine is a manifestation of willingness to enter into a bargain that justifies other person in understanding that his or her assent will conclude the bargain (Bagley, 2012). Acceptance indicates the receiving persons willingness to enter into the agreement proposed in the offer (Bagley, 2012). Consideration is something of value that is provided by both parties (Bagley, 2012). Lastly, a valid contract requires that both parties have the capacity to enter into the agreement (Bagley, 2012. Next I will discuss the avocation of god trustfulness and fair dealing in the consumer/banking relationship. preceding to 1929, Massachusetts expressly provided that so lid religious belief was applicable to all contracts. In 1929, the autocratic Judicial Court, in addressing a ravish of contract claim under an option agreement for the purchase of stock in an oil-producing leasehold, expressly stated, for the first time, that there was an agreement of proficient faith and fair dealing in all contracts.The court show that a business contract is to be interpreted as a business transaction entered into by practical men to accomplish an honest and straightforward send away. Beginning in 1936, the job of good faith was defined as a covenant that neither party shall do anything which will have the effect of destroying or injuring the right of the other party to catch the fruits of the contract. This fruits articulation of the duty of good faith remains intact at present and is regularly quoted as the operative example (Weigand, 2013). The next topic is to compare and channel the differences between knowledgeable and negligent civil wrong a ctions. There are several types of intentional civil wrongs and they are torts against persons, intentional torts that involve personalized property, and intentional torts with regard to economic touch on and business relationships.There are also several types of negligent torts. Two of which are duty to rescue and duty to invitees. learned torts against constitute of battery, assault, false imprisonment, intentional painful sensation of emotional distress, defamation, and invasion of privacy. The key excogitate in all of these intentional torts is intent or purpose to cause psychic trauma to other. Intentional torts against property include usurpation of land, nuisance, conversion, and trespass to personal property. Intent and purpose are also why these are considered intentional. The key difference between these two torts is that one is against people and the other is a misuse of anothers property. An individual has to purpose commit these acts. Negligent torts consist of different types of duties. work is when a person with a legal duty to another is required to act, reasonably, under the circumstances to keep down harming the other person.Some examples of this are duty to rescue and duty to invitees. Duties are fundamentally an obligation that one person is legally bound to perform for another. In examine the two types of torts we find that intentional torts are torts that people commit against other people. nonperformance also others but it is a misery to perform that causes the injury or unsportsmanlike action. An example of this comparison is the intentional tort of battery and emiture to perform the duty to rescue. When I commit battery I cause harm to another, when I fail to perform the duty to rescue the other individual also suffers harm but it is because I failed to act. In contrast intentional torts are actions committed against another and disregard is when I fail to take action on another. Next I will discuss the tort acti on of halt with contractual relations and participating in a break out of fiduciary duty. Interference with contractual relations protects the right to enjoy the benefits of legally binding agreements. It provides a remedy when the defendant intentionally induces another person to breach a contract with a plaintiff. Interference with contractual relations requires intent to interfere.The existence of a contract is the difference between winding contraceptive device and the more difficult to prove tortuous balk with prospective contractual relations. The most famous chemise of tortuous interference was Pennzoil v Texaco which occurred in 1983 (Bagley, 2013). Similarly a defendant who knowingly get intos in, or induces a breach of fiduciary duty by another commits the tort of participation in a breach of fiduciary duty. Lastly, I believe that if god grounds exist for the interference, such as exists in the JPMorgan Chase case then I should be able to prevail in the tort action. Lastly, I will cover how banks protect the software that allows for online transactions. Most banks protect the customers who participate in online transactions through what is called the Online Banking Guarantee. This protective cover covers your banking and personal information. It is the banks responsibility to ensure the customers protection while the customer engages in online transactions.In most if not all case the customer is 100% covered in the case of theft of funds. One of main defenses for software protection is through complex encryption systems. Another deterrent is barely the vast amount of software that is addressable for online banking. So between the wide legions of software and encryption systems online banking transaction are relatively safe. In this paper I have covered several topics and they are as follows What actions Administrative Agencys take to be effective in preventing high-risk gambles in securities and banking, the elements of a valid contract an d the duty of good faith and fair dealing between banks and consumers, analyze and contrasting intentional and negligent torts, the tort action of Interference with contractual relations and participating in a breach of fiduciary duty, and lastly, how banks protect the software that they use for online banking.ReferencesBagley, C. (2013). Managers and the Legal Environment Strategies for the 21st Century, seventh Edition. Mason South-Western, Cengage Learning. Liberto, J. (2012) CNN Money. (n.d.). Retrieved edge 1, 2013, from http//money.cnn.com/2012/05/22/ news show/economy/jp-morgan-senate/index.htm U.S. Commodity Futures Trading Commission. (n.d.). Retrieved March 1, 2013, from U.S. Commodity Futures Trading Commission http//www.cftc.gov/index.htm U.S. Securities and mass meeting Commission. (n.d.). Retrieved March 1, 2013, from U.S. Securities and Exchange Commission http//www.sec.gov/ Weigand, T. (2013) . The Duty of Good Faith and Fair Dealng in Commercial Contracts in Massachusetts, Massachusetts uprightness Review. Retrieved 10Sep13