JPMorgan Chase Essay Example | Topics and Well Written Essays - 1250 words - 6

JPMorgan Chase - Essay Example In the last section the essay will shed light on software automation in online banking transaction. According to Securities and Exchange Commission (2013), its purpose of existence is to protect the interest of investors, facilitate capital formation and maintain a transparent and fare market. Research scholars such as Kamin and DeMarco (2010) and Hill (2010) have pointed out that SEC plays much larger role in comparison to CFTC when it comes to saving the interest of investors. Hence in this essay, the researcher will only focus on control mechanism of SEC in order to discourage banks and financial institutions from involving in high risk gambles in primary market and securities. SEC has created two divisions such as Division of Trading and Markets and Division of Investment Management in order to create a fair a transparent market and protect interest of investors (Securities and Exchange Commission, 2013). ... mechanisms of Trading and Market Division and Investment Management Division of SEC to protect interest of investors can be summarized as, 1- incorporating financial integrity program to mitigate conflict of interest between broker-dealers, 2- reviewing policies to identify and punish fraudulent activities of banks and other companies, 3- assisting the Commission to establish a fair security market and 4- monitoring the actions in commodity market, 5- reviewing the investment adviser filings and 6- assisting Commission to go for law enforcement against companies and banks falsifying the financial results (Securities and Exchange Commission, 2013). SEC has also investigative arm which conduct investigation on following charges; Omission or misrepresentation financial results or crucial security information Manipulation of market prices of securities Defrauding customer’s fund    Insider trading of market information On the basis of above mentioned guidelines, control measures and legal enforcement actions, SEC take actions in order to prevent high-risk gambles in securities in the field of banking operation and security exchange. Elements of contracts include various items such as, 1- An Offer- willingness of parities to enter into bargain, 2- An Acceptance- acceptance of condition mentioned in by both parties, Purpose- purpose of the contract must be legal, 4- Mutuality of Obligation- mutual understanding of the condition and obligation between parties, 5- Consideration- there must consideration of benefits among both promisor and promise and 6- Certainty of Subject Matter- all the conditions must be clearly defined in the contract so that everyone involved in the contract can understand it. However, the nature of contract between banks and customers is purely based