JpMorgan Case Essay

We trust marges to hold up our capital and to assistance make use get more in investment and early(a) ways. peerless of the most trusted banks is J.P. Morgan Chase they argon easily one of the most well- roll in the hayn banks that exist. J.P. Morgan Chase on May 10, 2012 disclosed that they had lost more than $2 billion by trading financial derivatives.The administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures employment Commission (CFTC) take action in clubhouse to be effective in pr regularting high-risk gambles in securities and banking, a foundation of the economy. We set out to understand the elements of a valid consume, and discuss how consumers and banks from individually one surrender a work of good faith and fair relations in the banking relationship. Having to compare and contrast the differences between intentional and heedless civil wrong actions. Ill discuss the civil wrong action of handicap with Contrac tual Relations and Participating in a Breach of Fiduciary duty and, if the bank Ive elect were to behave as JP Morgan did, would I be able to prevail in such a tort action. Lastly lets discuss how banks have protected the bundle that allows for online transaction to come through automation.7The U.S. Securities and Exchange Commission (SEC) is a federal official agency. It holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nations stock and options exchanges, and other electronic securities markets in the United States. The SEC is dissever into four divisions The department of Corporation Finance the Division of avocation and Markets the Division of Investment Management and The Division of Enforcement. All the branches within the SEC carry similargoals in terms of protecting individuals and ensuring financial fairness, each has their own specialty for instance, the Division of Corporate Finance is tasked with the a ssurance that all imperative disclosure of which demo a corporation are easily accessible by the general public. In addition, the Division of Trading and Markets ensure fairness, order and efficiency in market activities. Much like the design of the SEC, the Commodity Futures Trading Commission (CFTC) is also inherently designed to ensure the public, its consumers, and investors are protected from coercion, manipulation, fraud, and/or any other forms of double-tongued relations between manufacturer and consumers/investors.The CFTC is noted to be an independent federal agency completed by the Commodity Futures Trading Commission Act of 1974. Again, similar to the design of the SEC, the CFTC is comprised of five different committees, each of which are responsible for a different sphere of influence of trade and marketing for example, agriculture, global markets, energy and environmental markets and technology all of which are equally as responsible as the next for ensuring full co operation and affixation to laws set forth by the SEC. Though banking is the most common method in which most tidy sum handle and maintain their finances, thither are also equally as many that take their gold to invest in stocks, bonds, and the like which do not carry a sound guarantee that they leave make a profit or even keep their initial investment monies.Consequently, past dealings with investor guinea pigs result in unfair and fraudulent losses and even erroneous gains such as the ones account by JP Morgan Chase, the propose of the SEC and CFTC alike become abundantly clear. With the utilization of these two particular securities, investors, consumers, and even marketers are able to rest easier knowing that there are serious legal, unfair and blatantly dishonest dealings within the marketplace. In an effort to maintain honest correspondence and dealings with the capital market, twain of these require that all earnings and losses should be reported at which point, there asshole be a recognition and determination of any imbalanced and deceitful dealings having taken place.The following are the essential elements of a valid contract. Offer and Acceptance. In order to create a valid contract, there must be a lawful offer by one party and lawful adoption of the same by the other partyIntention to Create Legal Relationship. In case, there is no such intention on the part of parties, there is no contract. Agreements of social or domestic nature do not contemplate legal relations. Lawful Consideration has been defined in various ways. The parties to an savvy must be competent the contract. If either of the parties does not have the capacity to contract, the contract is not valid. unaffectionate Consent means the parties must have agreed upon the same thing in the same sense. In the banking context, this means among other things that a bank could call a loan, refuse to fund, refuse to roll everywhere a loan, set off accounts, etc., no matter how dras tic the consequences might be to the borrower. As wide as the banks accept them expressly within the granted rights under the controlling loan documents. That may no longer be the case.With the advent of mobile banking, discuss how banks have protected the software that allows for online transaction to occur through automation. The first area, financial account, is used mainly for ascertaining the results of any such business on a periodic basis. This should as a result help the company influence the future course of action, in the long term. From an economic perspective, financial accounting treats money as a factor of production. Management and constitute accounting are apparatus used to help management make decisions on a daytime to day basis. Management and cost accounting arent useful simply for their own sake. These two functions help management conduct themselves along with other vital factors involved in the running of a business. new(prenominal) key factors could be supp ly, demand, competitors, availability of raw materials, logistics etc. The second area is cost accounting, its primary purpose is to attain the value of direct and indirect costs involved in production. The value acquired, management can make an informed decision on improvement in production performance. From an economic perspective, cost accounting is the bill of economic performance. This information gives management a clearer indication of the performance of the product resources in the business. be also helps the sales manage in setting the correct price. But, because costing is solely a measurement of economic performance, it cant be considered as an accurate basis for setting prices.Selling prices is more of an economic decision it would not be wrong to mention that pricing is basically determined by marketfactors. Prices are influenced mainly on demand, supply and competition, less on costs. High demand increase lack of competition would result in the business charging hig her prices for its product, well above the costs. The third area is management accounting, which is related closely to cost accounting. It has evolved from cost accounting management accounting plays a oftentimes broader role in management decisions. It measures the performance, economically, of the whole business, the economic environment that the business operates in. This area of accounting, seeks to combine two financial and cost information into a much broader function.Compare and contrast the differences between intentional and negligent tort actions. Intentional torts and negligence towards both give rise to civil actions. However, there are some important differences to understand about negligence versus intentional torts. Negligence torts do not require intent. To determine if someone should be found liable for a negligence tort, a clean person ensample is used. If the defendants behavior is found to be less careful than behavior a reasonable person would exhibit, tha t defendant can be found liable for damages. Intentional torts require intent. The person who move to tort must have intended to cause harm. The harm, however, did not need to be the specific type of harm that was caused to you. The other major difference between intentional and negligence torts, aside from the standard of proof, is that in many cases, a person who is found liable for an intentional tort can be demand to pay punitive damages in addition to actual damages. Discuss the tort action of Interference with Contractual Relations and Participating in a Breach of Fiduciary duty and, if the bank youve chosen were to behave as JP Morgan did, would you be able to prevail in such a tort action. The tort of randomness with contractual relations and participating protects the right to enjoy the benefits of legally binding agreements.I have chosen a bank like JP Morgan and they did what he I would not took it very well. I invested money and knowing that JP losses that money I wou ld wind up probably suing them. But providing a lighten when the defendant intentionally induces another person to breach a contract with the plaintiff. The defendant must know of the existence of the contract between the plaintiff and the other person, or there must be a sufficient fact that a reasonable person would be led to believe that suchcontract existed. Interference with the contractual relations requires an unacceptable purpose. If good grounds are set and exist for the interference then the defendant is not liable. But as for J.P. Morgan there were no good rounds so the defendant is liable. So if I were to go to court over this I would not win and neither would J.P we would scarcely be both out of the loss money that was invested.In conclusion when you invest money in a bank Think to you self is it a good idea or is it not a good idea. We all make investments just need to make sure it in the right bank that you can trust. J.P Morgan had a down fall and loss a ton of mon ey but in the end they had to deal with the fines and the investors. When in drought dont invest your money unless you really have to.ReferencesBagley / Savage 2013 Custom Editionhttp//money.cnn.com/2012/05/10/news/companies/jp-morgan-losses/index.htm http//www.thedailybeast.com/