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Assignment 2 JPMorgan Chase In the summer of 2012, JPMorgan Chase, the biggest U.S. bank, announced

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Assignment 2 JPMorgan Chase
Assignment 2: JPMorgan Chase
In the summer of 2012, 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 (SEC)
was provided falsified first quarter reports that concealed this massive loss.
Use the Internet or Strayer databases to research a different bank of your choosing.
Write a three to four (3-4) page paper in which you:
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 intentional and negligent tort actions
Discuss the tort action of “Interference with Contractual Relations and Participating in a Breach of Fiduciary duty”
and, if the bank you’ve chosen were to behave as JP Morgan 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 transaction
to occur through automation.
Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and
references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course
title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Describe the legal environment of business, the sources of American law, and the basis of authority for government
to regulate business.
Describe the elements of a contract and explain the basic provisions of contract law relative to offer, acceptance,
capacity, legality, fraud, third-party rights, performance, and breach of contract.
Explain the components of the Uniform Commercial Code (UCC) relative to sales and lease contracts and the basic
provisions of the UCC addressing sales / lease contracts, title, risk, insurable interests, and the performance and
breach of contracts.
Use technology and information resources to research issues in business law.
Write clearly and concisely about business law using proper writing mechanics.
Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and
writing skills, using the following rubric.
The bank that I have selected for similar activity that has happened in J P Morgan Chase is
“Baring Bank” and it was Nick Leeson who was trader in the Singapore Office of the “Baring
Bank” and made close to $1.40 Billion of Loss for the company and finally the bank had to
close down.
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.
Ans: JP Morgan Chases losing $5.8 Billion was so unfortunate and it was because of the mere
decision of the Chief Investing Officer and it also happened that, in the quarter of 2012, the
financial inputs given was manipulated. It was mentioned by the CEO of JP Morgan that, instead

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of hedging the risk, there was mere speculation on the investment, which turned to this kind of
scenario.
As administrative agencies, there can be guidelines set for compliance in the process of financial
reporting and it is the companies who need to follow the same. If the things are not followed as
per the guidelines or it so happens that, there are manipulated details submitted, then at that point
of time, it is very difficult catch hold the people who are all involved in fraud and punishing
them, by which everything would have been done. Hence first of all the administrative agencies
should visit the kind of compensation packages offered by the companies for the investing
officers and apart from the compensation, what additional benefits do the investing officer get
once he earns money on the amount invested. It should be ensure that, there should not be more
of lucrative packages linked to the performances, would let the person get some bonuses and
there will always an urge to do the fraud and accounting manipulations. So the hedging tools to
avail by the company, there has to be a limit and once it is close to a certain limit, there has be
intimation to the administrative agencies. Moreover, all banks may not allow participating in the
market after a limit in order to have control on the activity. Hence, day on day there are fraud
prone areas are created and people would make use of it. As banks are foundations for the
economy, they need to be always under surveillance for this kind of activities.
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.
Ans: Following are elements of valid contract among consumers and banks:
(i) Offer and Acceptance: There is a lawful offer made by bank and there is a law
acceptance by the consumer.

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Assignment 2 JPMorgan Chase Assignment 2: JPMorgan Chase In the summer of 2012, 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 (SEC) was provided falsified first quarter reports that concealed this massive loss. Use the Internet or Strayer databases to research a different bank of your choosing. Write a three to four (3-4) page paper in which you: 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 intentional and negligent tort actions Discuss the tort action of “Interference with Contractual Relations and Participating in a Breach of Fiduciary duty” and, if the bank you’ve chosen were to behave as JP Morgan did, would you be able ...
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