JpMorgan Case Essay

We trust tills to hold our notes and to att wipeout make custom get more in investment and other ways. One of the around trusted banks is J.P. Morgan Chase they are easily one of the most well- pick outn(a) 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 shift Commission (SEC) or the Commodities Futures affair Commission (CFTC) take action in regularise to be effective in preventing high-risk gambles in securities and banking, a effectuateation of the economy. We have to understand the elements of a valid contract, and discuss how consumers and banks distributively have a duty of good faith and fair dealing in the banking relationship. Having to compare and contrast the differences between intentional and negligent civil wrong actions. Ill discuss the tort action of onus with Contractual relations and Participating in a Br severall y of Fiduciary duty and, if the bank Ive chosen were to impart as JP Morgan did, would I be equal to(p) to prevail in such a tort action. Lastly permits discuss how banks have protected the software that allows for online transaction to slip away through automation.7The U.S. Securities and Exchange Commission (SEC) is a federal agency. It holds primary even out for enforcing the federal securities laws and regulating the securities industry, the nations stock and options exchanges, and other electronic securities commercialises in the United States. The SEC is divided into four divisions The breakdown of sight Finance the Division of Trading and Markets the Division of Investment wariness and The Division of Enforcement. All the branches within the SEC carry similargoals in hurt of protecting individuals and ensuring financial fairness, each has their own specialty for instance, the Division of incarnate Finance is tasked with the assurance that all imperative disclo su re of which represent 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 as well as inherently designed to ensure the public, its consumers, and investors are protected from coercion, manipulation, fraud, and/or whatsoever other forms of dishonest relations between manufacturer and consumers/investors.The CFTC is noned to be an independent federal agency established 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 area of trade and trade for example, agriculture, global markets, energy and environmental markets and technology all of which are evenly as responsible as the next for ensuring full cooperation and adherence to laws mass for th by the SEC. Though banking is the most common method in which most people handle and maintain their finances, there are similarly equally as many that take their money to invest in stocks, bonds, and the like which do not carry a sound take in charge that they will make a profit or even discover their initial investment monies.Consequently, past dealing with investor types result in cheating(prenominal) and fraudulent losses and even erroneous gains such as the ones inform by JP Morgan Chase, the purpose of the SEC and CFTC alike become abundantly clear. With the utilization of these two dissevericular securities, investors, consumers, and even marketers are able to rest easier discerning 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, both of these require that all earnings and losses should be reported at which point, there can be a ackno wledgment and determination of any imbalanced and deceitful dealings having taken place.The chase are the essential elements of a valid contract. Offer and Acceptance. In order to create a valid contract, there essential be a lawful saturnineer by one party and lawful acceptation of the selfsame(prenominal) by the other partyIntention to Create profound 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 agreement must be competent the contract. If either of the parties does not have the capacity to contract, the contract is not valid. Free Consent content 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 over a loan, set out off accounts, etc., no matte r how drastic the consequences might be to the borrower. As gigantic as the banks accept them expressly within the granted rights under the irresponsible loan documents. That may no longer be the case.With the advent of active banking, discuss how banks have protected the software that allows for online transaction to occur through automation. The first area, financial accounting, is used mainly for ascertaining the results of any such communication channel on a periodic basis. This should as a result suffice the company determine the future course of action, in the long term. From an stinting perspective, financial accounting treats money as a factor of production. Management and address accounting are apparatus used to help instruction make decisions on a day to day basis. Management and make up 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.Other key factors could be supply, demand, competitors, availability of naked as a jaybird materials, logistics etc. The second area is cost accounting, its primary purpose is to piss the entertain of direct and indirect costs involved in production. The value acquired, management can make an informed decision on usefulness in production performance. From an sparing perspective, cost accounting is the measurement of economic performance. This information gives management a clearer indication of the performance of the product resources in the business. Costing also helps the sales manage in setting the better 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 price is basically determined by marketfactors. Prices are influenced mainly on demand, supply and competition, less on costs. High demand plus neglect of competition would result in the business charging higher prices for its product, well supra 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 much 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 trust both financial and cost information into a much broader function. examine and contrast the differences between intentional and negligent tort actions. Intentional torts and omission towards both give rise to civil actions. However, there are or so important differences to understand about negligence versus intentional torts. Negligence torts do not require intent. To determine if someone should be found apt(predicate) for a negligence tort, a bonnie someone standard is used. If the defendants style is found to be less caref ul than behavior a reasonable person would exhibit, that defendant can be found liable for damages. Intentional torts require intent. The person who committed to tort must have intended to cause harm. The harm, however, did not need to be the unique(predicate) 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 needful to pay punitive damages in addition to actual damages. hold forth 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 interference 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 would wind up probably suing them. But providing a remedy when the defendant intentionally induces another(prenominal) 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 uncomplete would J.P we would just be both out of the loss money that was invested.In conclusion when you invest money in a bank gauge 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 i n the right bank that you can trust. J.P Morgan had a down happen upon and loss a ton of money 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/ tidings/companies/jp-morgan-losses/index.htm http//www.thedailybeast.com/