JPMorgan Chase Paper

1315 WordsNov 1, 20136 Pages
JPMorgan Chase Leg 100 Buss Law 1 Aug 11, 2013 In the summer of 2012, JPMorgan Chase, the largest leading 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 hidden this massive loss. 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. In the summer of 2012, JPMorgan Chase, the largest leading U.S. bank, make known…show more content…
The leader of CFTC, Gary Gensler, give an opinion that “JPMorgan's losses are worth looking into, because as a U.S. bank, it is an entity with direct admission to the Federal Reserve's discount window and federal deposit insurance" (CNN Money). 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. A contract is a legally obligatory promise or set of promises (Bagley, C. 2013). If this promise is broken, either party involved can be legally responsible and take the other party to court. There are four basic elements in the creation of a valid contract. The first consist of an agreement between the parties involved, by an presented offer and acceptance. The second states that the parties’ promises must be supported by something of worth, known as consideration. The third advises both parties must have the ability to enter into a contract. The fourth element states the contract must have a legal purpose (Bagley, C 2013). The duty of good faith and good dealing is implied in every contract. In recent years the mortgage industry has been seen as a prime example of how consumers and banks need to better understand and adhere to duty of good faith and good dealings. Consumers had the responsibility of
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