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

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

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.

What actually happened? It has been said that JP Morgan enter into an exceptionally large derivatives positions called Credit Default Swaps3(CDS) which initially were intended to hedge the bank’s credit risk. Due to this large position in

In recent months, Senator Bernie Sanders has proposed legislation to break up the nation’s biggest banks, including JPMorgan Chase, under Section 121 of the Dodd-Frank Act (Przybyla, 2015). The 2016 presidential candidate has repeatedly stated that he vows to break up the big banks if he gets elected. According to Sanders, “fraud is the business model of Wall Street” (Dywer,

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

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

Since 2007, three of the four banks have grown larger. Wells Fargo alone has tripled in size. She continues to tell people listening to Citigroup she agrees with them and the act should be torn to pieces. As of January 27th, 2015, the stocks of these major banks appeared to be lower than the usual. Together the four banks hold 8.2 trillion dollars in assets, that is roughly half of Americans annual GDP. (Duggan, Wayne)

In November 2013, JPMorgan was involved in a law suit scandal with the department of justice and agreed on a $13bn civil settlement for assuming responsibility of toxic mortgage lending practices.

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).

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

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

A contract is a lawful agreement between two or more persons/parties/people within the limits of their contractual capacity, with the serious intention of creating a legal obligation, communication such intentions without vagueness, each to the other being of the same mind as to the subject matter, to perform positive or negative acts which are possible of performance. (Gibson & Fraser, 2011)