Assignment 2: JP Morgan Chase
August 10, 2014
JP Morgan Chase is one of the oldest banking and financial institutions in the United States. The company itself is over 200 years old and they are a leading global financial service. Their assets are over $2.4 trillion and they are in over 60 different countries with 260,000 employees. (About, 2014)
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. This paper will be discussing how administrative agencies take action in order to be effective in preventing these kind of risks in the financial industry, how consumers and banks have a duty of good faith and fair dealings in a banking relationship, intentional and negligent tort actions, interference with contractual relationship and breach of fiduciary duty, and protections for mobile banking.
The Securities and Exchange Commission (SEC) is ultimately responsible for protecting investors from a possible loss of income and encouraging capital markets by maintaining fair practices. The SEC requires full disclosure of all important information about securities that they might sell. This allows all investors to make an informed decision based on information. The SEC can bring civil lawsuits against a company or individual that break the securities laws and can interpret federal laws, issue new rules, or amend existing rules. They oversee the inspections that guarantee such rules and laws are being followed. (Wallechinksky, 2014)
The Commodities Futures Trading Commission’s (CFTC) goal is to protect those that participate in the stock market as well as the public from any kind of manipulation, fraud or abusive practices and risky behaviors. The CFTC encourages...