JP Morgan And Chase

JP Morgan And Chase

Q.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.

The establishment of the United States economy is the banking industry, and the American individuals require security from the risky gambles that these securities take an interest in. We have to have a clear understanding of how the Securities and Exchange Commission furnishes that security. The SEC formulates laws and legislation that help to govern the banking industry with a specific end goal to be viable in ensuring the general population. These regulations are inferred from a straightforward and direct idea: all the investors including private institutions or delicate individuals should have admittance to certain essential actualities about a venture before purchasing it, along these lines long as they hold it. Keeping in mind the end goal to finish this, the SEC requires public organizations to uncover important money related and other data to general society. The SEC likewise manages the key members in the securities planet to incorporate: securities exchanges, securities dealers and brokers, investment guides, and mutual funds. The SEC is concerned with empowering the divulgence of paramount market related data, promotion of fair dealing, and securing against cheating, in the United States (U.S. Securities and Exchange Commission, 2013).

An alternate agency that likewise initiates movement in counteracting high risk gambles in securities / banking, as an establishment of the economy is the Commodities Futures Trading Commission (CFTC). The CFTC was made by congress on 1974 to "command to regulate commodity futures and option markets in United States" (U.S. Commodity Futures and Trading Commission). The CFTC aims to provide economic protection and effectiveness for future markets by securing market members against misrepresentation, fraud, manipulation, harsh trading practices, by guaranteeing the financial integrity of the clearing process. The CFTC empowers the future markets to serve the function of furnishing methods for price discovery and offsetting price risk. This is the fundamental way that both organizations forestall high risk gambles in securities is by setting regulations and laws that will stop the abuse of securities and banking; to prevent the misfortune of cash by investors, in order to prevent financial crisis U.S. Commodity Futures and Trading Commission., 2013).

Q.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.

Consideration presumes that every side carries something of quality to the deal. An offer is the ability to enter into an arrangement with an alternate individual in comprehension that his or her acknowledgement will close the deal. This offer could be between an individual and a class of individuals. A contractual agreement is an offer and acknowledgement, which implies that there must be an acknowledgement of exactly what has been advertised. Acceptance happens when the offered concur by method for a proclamation on ...