JPMorgan Chase

Short Essays on the JP Morgan Trading Losses of the summer of 2012 Name Institution Affiliation Course Date of Submission JP Morgan 1. 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. Organizations such as the Securities Exchange Commission and the Commodities Futures Trading Commission are independent agencies that are legally charged with regulating and providing guidelines for the trading and or exchanging of the goods and services within their respective jurisdictions. The Securities Act of 1934 has fully empowered the SEC to do a periodic evaluation of reports from companies that publicly trade their securities. The same act hands the SEC the powers to discipline individuals and entities that are regulated if found in breach of industry rules and regulation (Mahony, 1982). The Commodities Futures Trading Commission on the other hand was created in 1974 to protect individuals, the public and industry players from manipulation, fraud, and potentially abusive practices while at the same time fostering competitiveness, openness and creating markets that are sound (Teall, 2012). 2. 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. There are four basic elements of a contract as Miller (2012) writes. The first important requirement in the formation of a contract is an agreement. In an agreement there should be a party that offers to enter into the legal agreement and another one that accepts the terms of the offer placed. The terms of the contract should contain wording that allows meeting of the minds of both parties that allows them to consciously read and or understand what is in store for them before they can agree mutually to proceed with...