JpMorgan Case Essay Example for Free

JpMorgan Case EssayWe trust banks to hold our cash and to tending found use get more in fit outment and a nonher(prenominal) ways. One of the close to trusted banks is J.P. Morgan traverse they are easily one of the most well-known banks that exist. J.P. Morgan Chase on May 10, 2012 disclosed that they had wooly more than $2 billion by trading financial derivatives.The administrative agencies like the Securities and Exchange committal (SEC) or the Commodities Futures Trading Commission (CFTC) take action in order to be effective in pr even upting high-risk gambles in securities and banking, a foundation of the economy. We have to understand the elements of a valid contract, and question how consumers and banks each(prenominal) have a certificate of indebtedness of secure faith and fair dealing in the banking relationship. Having to compare and logical argument the differences between intentional and negligent civil wrong actions. Ill discuss the tort action of Int erference with contractual Relations and Participating in a Breach of Fiduciary duty and, if the bank Ive chosen 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 software that allows for online transaction to occur done automation.7The U.S. Securities and Exchange Commission (SEC) is a federal 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 commercializes in the United States. The SEC is divided into four divisions The surgical incision of Corporation pay the Division of Trading and Markets the Division of Investment Management and The Division of Enforcement. All the branches within the SEC carry analogousgoals in terms of protecting individuals and ensuring financial fairness, each has their own specialty for instance, the Division of Corporate Fina nce is tasked with the assurance that all imperative disclosure of which represent a corporation are easily social by the general public. In addition, the Division of Trading and Markets checker fairness, order and efficiency in market activities. Much like the design of the SEC, the Commodity Futures Trading Commission (CFTC) is alike inherently designed to ensure the public, its consumers, and investors are protected from coercion, manipulation, fraud, and/or any other forms of dishonest dealings between manufacturer and consumers/investors.The CFTC is consultation to be an independent federal agency established by the Commodity Futures Trading Commission fleck of 1974. Again, similar to the design of the SEC, the CFTC is comp pinchd of five different committees, each of which are responsible for a different rural area of trade and marketing for example, agriculture, global markets, energy and purlieual markets and technology all of which are equally as responsible as the next for ensuring full cooperation and adherence to laws punctuate forth by the SEC. Though banking is the most common method in which most people handle and asseverate their finances, at that place are also equally as many that take their notes to invest in stocks, bonds, and the like which do not carry a sound guarantee that they will make a profit or even keep their initial investment monies.Consequently, past dealings with investor types result in unfair and fraudulent losings and even erroneous gains such as the ones reported by JP Morgan Chase, the purpose of the SEC and CFTC alike frame abundantly clear. With the utilization of these two particular securities, investors, consumers, and even marketers are able to rest easier kno surviveg that thither 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 acquire that all earnings and losses shoul d be reported at which point, there hind end be a recognition and determination of any brainsick 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 mustiness be a lawful beseech by one party and lawful acceptance of the same by the other party determination 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. square 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 means the parties must have agree upon the same thing in the same sense. In the banking context, this means among other things that a bank could roar a loan, refuse to fund, refuse to roll over a loan, set o ff accounts, and so on, no function how drastic the consequences might be to the borrower. As long as the banks accept them expressly within the given(p) 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 method of accounting, is used primarily for ascertaining the results of any such business on a periodic basis. This should as a result serve up the company determine the future course of action, in the long term. From an economic perspective, financial accounting treats money as a factor of production. Management and cost accounting are apparatus used to help management make decisions on a day to day basis. Management and cost accounting arent useful simply for their own sake. These two functions help management conduct themselves along with other rattling factors involved in the run ning of a business.Other key factors could be supply, 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 be involved in production. The value acquired, management can make an informed decision on proceeds in production performance. From an economic 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 conniption the correct price. entirely, because costing is solely a measurement of economic performance, it cant be considered as an surgical 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(prenominal) on costs. High demand plus lack of competition would result in the business charging high 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 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 combine both 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. sloppiness torts do not require intent. To determine if someone should be found liable for a negligence tort, a reasonable person standard is used. If the suspects manner is found to b e less careful 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 specific type of harm that was caused to you. The other major difference between intentional and negligence torts, parenthesis from the standard of proof, is that in many cases, a person who is found liable for an intentional tort can be required 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 interference with contractual relations and participating protects the right to enjoy the benefits of legally covering fire agreements.I have chosen a bank like JP Morgan and they did what he I wo uld not took it genuinely 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 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 desire 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 just 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 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/news/companies/jp-morgan-losses/index.htm http//www.thedailybeast.com/