JP MORGAN

JP Morgan

JP Morgan Case

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?

Ans1. The administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CTFC) have a vital role in taking action against any financial irregularity or preventing any sort of financial crime that takes place in the Corporate World. It is very important for these agencies to function in a proper manner in order to perform their work in the best possible way. The Securities and Exchange Commission has this task in every part of the world and it is one of their most important domains. It is a regulatory body for monitoring all the financial transactions that takes place in the Corporate world. Their biggest task is to scrutinize all the information and to also conduct audits of those companies with the help of the major Audit firms in order to keep an eye on any fraudulent activity that takes place in the Corporate world.

On the other hand, the task of the Commodities Future Trading Commission known as CTFC also assists the Securities and Exchange Commission to prevent any sort of illegal financial transaction that takes place in the economy. The main function of the CTFC is to monitor the transactions related to the commodities operating in the economy. The equity based transactions are monitored very closely and the foreign exchange transactions also go through this process. Therefore, it is quite clear that the SEC and CTFC have a major role to prevent any sort of fraudulent based financial transactions in the economy (Gervais & Odean, 2001).

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?

Ans2. There are several elements of a valid contract and all of them have a lot of value. The validity of the legal contract forms the basis of a working relationship between different institutions that matters a lot for any company. The elements of the valid contract must be satisfied by the stakeholders in order to make things easier for the Companies. This particular case has a strong relationship with the Consumers and the Banking sector that is always considered valuable in any economy. The duty of good faith is dependent on both stakeholders because it is not a one sided story. It is the responsibility of both consumers and banks to perform their responsibility in the best possible way.

There are certain aspects of the contract which makes it compulsory for both the concerned parties to comply on them. The contract makes it necessary for both the parties to have strong commitment on several issues. The good faith and fair dealing are always known as the important principles for any kind of business ...