Leg 100 Buss Law 1
Aug 11, 2013
In the summer of 2012, JPMorgan Chase, the largest leading U.S. bank, announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that hidden this massive loss.
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. In the summer of 2012, JPMorgan Chase, the largest leading U.S. bank, make known trading losses from investment verdict made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that concealed this enormous loss. The duty of the U.S. Securities and Exchange Commission is to protect investors, uphold fair, organize, and efficient markets, and facilitate capital formation. Obligatory public companies to disclose meaningful financial information to the public is an effective move toward the SEC takes in order to assure the securities of this nation (U.S. Securities and Exchange Commission). These assist investors prevent high-risk gambles and allows them to make the right decisions when deciding on which companies to invest in. The Commodity Future Trading Commission regulates the product futures and options markets. Its target includes the promotion of competitive and efficient futures markets and the protection of investors against manipulation, abusive trade scheme and fraud (U.S. Securities and Exchange Commission). Both the SEC and the CFTC played a role in investigating the massive trading losses in the case of JPMorgan Chase. The SEC’s investigation could only focus on the suitability and completeness of
Cited: Work U.S. Commodity Futures Trading Commission. (n.d.). Retrieved March 1, 2013, from U.S. Commodity Futures Trading Commission: http://www.cftc.gov/index.htm CNN Money (n.d.). Retrieved March 1, 2013, from http://money.cnn.com/2012/05/22/news/economy/jp-morgan-senate/index.htm U.S. Securities and Exchange Commission. (n.d.). Retrieved March 1, 2013, from U.S. Securities and Exchange Commission: http://www.sec.gov/ Bagley, C. (2013). Managers and the Legal Environment: Strategies for the 21st Century, 7th Edition. Mason: South-Western, Cengage Learning.