JPMorgan Chase Essay Example | Topics and Well Written Essays - 1250 words

JPMorgan Chase - Essay Example Securities and Banks are also recognized as the most sensitive economic sectors which are on high risk of gambling due to multiple reasons such as increased internal money supply and violation of laws. Therefore they strongly require protection from agencies, for example, Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC). These agencies provide protection to Securities or Banks from gambling and fraud subsequently reducing the risk factor attached to them and also analyzes their overall operations and activities. This makes the role of these administrative agencies substantial so as to amplify the economic growth and development. To further explain this lets first consider the example of JP Morgan Chase’s gambling case of summer 2012 (Gordon, 2012). JP Morgan Chase is the leading bank of United States of America; the bank’s Chief Investment Office (CIO) declared a loss of $5.8 in summer 2012. The reasons put forward by the bank w ere concerning inappropriate investment decisions. In order to conceal the gambling case, the top management provided falsified reports of the year’s first quarter to the Securities and Exchange Commission (SEC). ... On the other hand Chief Investment Officer, Ina Drew, watched over the responsibility of loss to the trading group. He left the bank soon after this event occurred. SEC along with FBI investigated the trading loss at the biggest bank of US with respect to assets (Gordon, 2012). Elements of a Valid Contract Contract is broadly defined as an official agreement between two parties which is then used by the court in order to make judgments. Generally contracts need to follow certain requirements so as to acquire validity and authenticity only after which they can be used by the court. Following are the main components of a Valid Contract (Laurence, 2013): Offer: It is the initial most element of a contract. It is basically a form of promise between two parties which then transforms into an official contract. Acceptance: Offer is subsequently followed by an acceptance from another party to whom the offer is made. The acceptance of an offer indicates that the other party has approved all t he rules and regulations presented in an offer. Consideration: One the offer is accepted then an exchange takes place between the two parties through consideration. In this case the other person gives something to the first person so as to verify the contract. Creating Legal Relations: Legal relations are created to establish consensus between two parties to legalize the contract so that its authenticity and validity increases. Certainty: It is yet another significant element of a valid contract which deems the rules and regulations stated in the contract. These should be clearly understood by both the parties. It includes details such as the time period of a particular contract. Capacity: Capacity defines the pre-requisites of entering into a contract. For instance,