Jp Morgan Essay

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JP Morgan Chase JPMorgan Chase and Co. is known to be one of the oldest and largest banks in the United States as well as one of the leading global financial institutions in the world (JPMorgan History , 2013). During the summer of 2012, JPMorgan was under the investigation of the Security Exchange Commission because reports that the Chief Investment Officer was providing false reports to the SEC about the trading loss in the amount 5.8 billion dollars. The SEC charged JPMorgan in 2013, with misreporting financial results and lacking effective control to detect and prevent its traders from fraudulent activity which created a enormous amount of losses (U.S.Securties and Exchange Commission , 2014)JPMorgan agreed with the SEC about committing the wrongdoing and agreed to pay 200 million dollars. Administrative Agencies The foundation of the United States economy relies on the banking business. The federal government creates administrative agencies to oversee the need of protection from the high risk gambles in securities/banking; the Securities and Exchange Commission is the federal agency that provides this protection. The SEC creates laws and rules that govern the banking industry in order to be effective in protecting the public and all investors whether public or private in addition to having access to important information about investments available before purchasing (U.S. Securities and Exchange Commission,2014). Public companies are required to disclose financial information to the public. The SEC also oversees the securities exchanges, securities brokers and dealers, investment advisors, and mutual funds internationally and is concerned the disclosure of market-related information, maintaining fair dealing, and protecting against fraud, in the United States. (U.S. Securities and Exchange Commission, 2014). The SEC enforces its authority by bringing

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