JPMorgan Chase Essay Example | Topics and Well Written Essays - 1250 words - 1

JPMorgan Chase - Essay ExampleHowever, losses also occur delinquent to internal frauds and corruptions which lead to comparatively severe consequences. Due to this banking activities atomic number 18 administered by the security measure agencies like Security and Exchange Commission (SEC) and Commodities Futures Training Commission (CFTC). The prime responsibility of these security agencies is to look after(prenominal) the financial dealings within the banking sector and to investigate the losses and fraudulent activities. The spend of 2012 brought a very distinctive case forward in the history of financial gambling as a leading bank of United States of America was found to have a loss of $5.8 billion. The smart set officials reported that the loss occurred due to the poor investment decision made by the management with paying attention to trading. Later on this statement given to the CFTC inspectors was found to be false and the overall inspection showed around counter resul ts. The bank officials working on trading investment left the bank soon after this event which raised a lot of questions to the investigating officers (Farrell, 2012). Role of SEC and CFTC in preventing high riskiness gambles When a bank or any opposite financial institution faces a loss due to gambling then the overall economy of the country has to bear its consequences since these two economic sectors act as the most significant structural blocks for any nation. In relation to this the role of SEC and CFTC also becomes stiff as they are the key forces tramp the prevention of such activities. Their prime concern is to ensure that maximal protection is extended to the investors, rules are fairly followed by the banks, financial market is operating efficiently and at long last there is enough capital available to the banks and other financial institutions to carry on their activities (Schapiro, 2012). Among these the duty of defend the investors safeguards high risk gambles. I n addition to this, these agencies implement laws regarding the fraudulent activities reported by the financial institutions. For instance, in the case of JP Morgan Chase the CFTC investigated the overall scenario and found that initial reporting made to the agency was falsified and that the real reasons behind the bulky loss were in kept hidden by the Chief Investment Office (CIO). CFTC was liable to look after trading and financial derivatives while on the other hand SEC administer the banks financial disclosures from the stockholders so as to investigate the details of such a massive loss (Gary Shorter, 2012). Valid Contract Contracts are not just general systems between two parties sort of they are the judicially supported documents which can be challenged in the court. The contracts are made to give legal assistance to an agreement so that in future if either of the parties commits an illegal activity then the other one can save itself from potential losses. Due to the le galities attached to contracts there are certain immanent elements of a Valid Contract which makes it fully acceptable in courts and in legal institutions. Following are the essential elements of a Valid Contract (Elements of a Contract, 2013) Offer and Acceptance First of all an continue is made by one of the parties which can be accepted or rejected by the stake party. If the offer is accepted by the other party then the procedure moves on. The acceptance of the offer reflects the agreement of the other party regarding all the stated rules and regulations. Intention to build successful legal relations A valid