JPMorgan Chase Paper

A contract requires four elements to be valid. Essential elements in any contract include the following: agreement, consideration, legal ability, and a legal object (Kubasek, Browne, Herron, Dhooge, & Barkacs, 2016). The agreement includes the offer made to the other party who then agrees to enter into the contract. The consideration includes the exchange each party receives as a result of the contract. The legal ability is capacity one has to enter into a legal contract. The legal object is the legality of the contracted issue. These elements together create an effective, valid contract.

While financial banks were inadequately controlled by regulatory agencies, there was a necessity for fresh policies to resolve these issues. Prior to the Volcker Rule becoming implemented, the crooked financial activity done at the time had affected the clients of the banks. The complexity of the regulations caused dissatisfaction for the clients and customers and eventually affected the overall business flow of the bank institutions. There was a strong need for new procedures and restrictions before the banking industry would have another breakdown and in the worst case, cause another financial crisis within the American economy. The biggest problem during this crucial financial time included how the banking industry was consistently earning large amount of money from these high-risk trades with the institution’s own

For this pre-crisis intelligence project, I examined JPMorgan Chase and the banking and financial services industry to identify warning signs of crises that could seriously impact its business. The banking industry is bouncing back after the financial crisis of 2007-2008. However, recent drop in oil prices, developments in the Chinese economy, and promises made by a presidential candidate, are all key potential risk factors for JPMorgan Chase.

According to Bloomberg reports, the two insider of JP Morgan stated that from June 2014, the US Federal Bureau of Investigation

Over the years the regulations and oversight of the banks seem to be fraud in many Americans’ eyes. “Operation Choke Point” has been put into action by The Republican Party. This operation looks to stop fraud within the banking system, whether through consumers or bankers themselves. Through the operation, regulators look for illegal activity in the banks legal paperwork. The Republicans claimed the goal of this operation was to put gun sellers and money lenders out of business, while the Federal Deposit Insurance Corporation (FDIC) says this is putting pressure on the banks to stop supporting these types of companies. FDIC also claimed “Operation Choke Point” is through the justice department and separate from bank regulation. This was used as a reassurance so banks do not release relations with actual businesses. FDIC has now requested anytime a bank wants to terminate a consumer’s bank account or decline a transaction, it must be written in writing and discussed with the branch managers. When discussing

All managers of contracts, both buyers and sellers, must understand the basic concepts and principles of the contracts they work with and support. Both parties must ensure that their contracts are clear and concise and that they facilitate, not inhibit, communication.

On Monday, March 10, the rumour started: Bear Stearns was having liquidity problems. In fact, the maverick investment bank had around $18 billion in cash reserves. But soon the speculation created its own reality, and the race was on to keep Bear’s crisis from destroying Wall Street. In what the economists called a “credit crisis,” the big banks were so spooked they had all but stopped lending money, a nervous Fed, in what some believe was the greatest financial scandal in

JPMorgan Chase & Co. was rocked by a cyberattack during the summer of 2014, that reportedly compromised the accounts of over 76 million households and other small businesses, which made headlines placing it amongst the largest intrusions reported to date

had unfinished business with the regulators worldwide on their trading fiasco. For example, the bank had entered into a so called “cease and desist” order with the Federal Reserve and the Comptroller of the Currency (COC) to work out new regulator-approved processes relating to the issues about the board’s role, risk management, finance and audit identified in the internal Task Force report. And questions of fraud in the London office and inadequate SEC disclosure by JP Morgan Chase &Co. are also being pursued by government investigators.

JP Morgan is the largest bank in the US with over $2.5 trillion in assets. The bank made it known via an SEC 8-K filing that the breach affected 76 million households and 7 million small businesses. They confirmed that contact information of customers was compromised in the breach including name, address, phone number and email addresses. They indicated that internal JP Morgan information pertaining to customers such as credit cards and various investment products, was also accessed by parties

Contracts are one of the most important areas when it comes to operating a successful business. Contracts provide security for a business and the work that is to be performed. Both verbal and written contracts are binding. Written contracts contain more validity than a verbal contract, however, a verbal contract is just as binding. Contracts are important and should always be written and signed by all parties that are involved in work that is to be performed. Contracts are a great way to protect a business or workers from any future issues that could possibly arise. Good faith and fair dealing are something that go hand in hand with contracts. Good faith is a general assumption that the parties in the contract will deal with one another honestly and fairly. Good faith and fair dealing are implied in all contracts in order to guarantee the promises made within the contract will be met in good

JP Morgan got involved in the crisis by the acquisition of two banks in 2008 that were carrying out such practises. Bear Stearns and Washington mutual; by acquiring them, they acquired their problems. At the

There is lack of transparency in JP Morgan case as initially the large trades were first claimed to be associated with hedging of their credit risk against Euro crisis. Later it turns out to be a trading strategy to lower their RWA. If there’s a proper reporting on the activities, the management would be aware on this matter earlier and proper measurement could be taken to minimize the impact.

Comm. on Banking, Housing & Urban Affairs, 111th Cong. 1–2 (2009) (statement of Donald L. Kohn, Vice Chairman, Board of Governors of the Federal Reserve System) [hereinafter Kohn Statement], available at http://banking.senate.gov/ public/_files/KohnStmtMarch52009.pdf. 2. Press Release, American International Group, Inc., AIG Reports Full Year and Fourth Quarter 2007 Results (Feb. 28, 2008), available at http://idea.sec.gov/Archives/edgar/data/5272 /000095012308002282/y50505exv99w1.htm. 3. Yahoo! Finance, AIG: Historical Prices for American International Group, Inc., http://finance.yahoo.com/q/hp?s=AIG (last visited Sept. 29, 2009) (on file with the Washington and Lee Law Review).

To have a valid contract three elements are necessary: agreement, intention to create and consideration. Consideration may consist some right, interest, profit or benefit accruing to the party under taken by other promise is other is bought and the promise given value is enforceable.