...IRAC Brief: JP Morgan Chase Settles the London Whale This is a case study analysis of a current legal case regarding the governance principles of regulatory compliance and the methods used to manage risk arising. The briefing of this case will utilize the IRAC method of case analysis to give a breakdown on the case of JP Morgan Chase on regulatory violations and risk management. The IRAC method will address I - Issue, R - Rule, A - Analysis, and C - Conclusion which will provide a researched assessment of the trading loss violations on this case. Please read and review this analysis of the case utilizing IRAC method of case analysis. Issue JP Morgan Chase permitted traders in its London office to allocate magnified values to transactions and cover up huge losses as they continued to explode. Two traders could face criminal charges for fabricating records to cover up losses. JP Morgan’s charge to the $6 billion oversight in trading loss is the first for a main company since the Securities and Exchange Commission revised its practice of letting firms pay fines without admitting fault. An admission by JPMorgan could provide a pattern for pursuing other admissions in Wall Street cases. The Justice Department is aggressive in getting JPMorgan to admit that from 2005 to 2007, it sold mortgage securities to investors without fully warning of the risks. By wanting the bank to admit some responsibility, officials hope it will caution other corporations to double check before taking...
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...FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION MNEs, JVs, and M&As Osho Aquila Adeolu Student number: 2302887 Mergers and Acquisitions, Case Study: JP Morgan Chase &Co Oulu Business School 2013 1 Table of Contents 1 INTRODUCTION ............................................................................................................................... 2 2 HISTORY AND THE M&A PROCESS ............................................................................................. 3 2.1 History .......................................................................................................................................... 3 2.2 The M&A process ......................................................................................................................... 3 3 MOTIVES OF M&A ........................................................................................................................... 5 3.1 Challenges and human side during the merger process ................................................................ 6 3.2 Strategy used by JP Morgan Chase in solving some challenges ................................................... 7 3.3 The success factor of JP Morgan Chase Merger ........................................................................... 8 4 CONCLUSIONS................................................................................................................................ 10 References ................................
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...Case Study: Merit Enterprise Corp March 19, 2013 After careful review Merit Enterprise Corp case study the pros of option 1: (assuming that JP Morgan Chase will continue to extend season credit lines and medium term loans.) First, it would keep Merit Enterprise as a private company. Secondly, Merit’s would have the right of non-disclosure. Private companies are not required to disclose details about their operations. Third, Merit Enterprise does not have to answer to shareholders if the stock is underperforming. The cons of option 1 are: First, banks may limit Merit borrowing after being financed for the 4 billion dollars. This may become a problem if Merit is maxed out on receiving financing and would need any additional capital for any other projects. Another con is that JP Morgan Chase may require frequent review of financial statements during the expansion project to determine if Merit’s financial condition is sound. The pros of option 2: (assuming that Merit decide to take their company public) 1. Issuing stock to public would quickly raise the necessary financing ($4 billion) needed to expand Merit’s production capacity. 2. Also, going public would allow Merit to offer stock and stock options to their employees which is additional incentive to contribute to the success of the company. Option 2 cons: Merit would have to be subject to extensive financial disclosures such as quarterly and annual reports which are required by the SEC. Another con of going...
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...most cases today the first and not the latter is the standard to what a business is. Business doesn't just end with a simple definition there are many parameters and difficult work to make a idea a working business. This paper will provide a comprehensive analysis into one of the largest financial institutions in the United States JP Morgan Chase and Company. These topics include the following: 1. The History of the firm. 2. The Environment of the Business. 3. The Business operations tactics of the firm. 4. The Human Capital of the firm. 5. The Marketing and Pricing tactics of the firm. 6. The Distribution and Promotional tactics of the firm. 7. The Investor Relations of the firm. Business History Whether, it’s John D. Rockefeller and The Standard Oil Company, Andrew Carnegie and Pittsburgh steel industry, or the railroad tycoon Cornelius Vanderbilt. Most of us in business are truly fascinated by the accomplishments of individuals and the companies they founded that became such great American institutions of finance and industry. So we as spectators and future entrepreneurs always want to know the four W’s when inquiring about the origins of a great businesses such as the aforementioned. Who, What, When, Why? But we also want the most important HOW? How did they become titans of industry that they are. Provided in this topic will be answers to these questions and more in this description of JP Morgan...
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...Study of Corporation By-laws Table of Content I. Introduction II. Standard template of Corporation By-laws III. Case study (focus on corporation control provision) a. JP Morgan b. Lorillard c. KRAFT d. NYACS e. DUPONT CIRCLE CONSERVANCY IV. Summarization I. Introduction Corporate and organizational bylaws contain the rules and procedures that regulate the organization to which they apply and are generally concerned with the operation of the organization. It can govern the rights and powers of shareholders, directors, and officers. Generally, Bylaw of a corporation cannot be amended only by organization's board of directors. A super-majority vote of the membership, which means two-thirds present and voting or a majority of all the members, is usually required to amend bylaws. Therefore, corporation bylaw is an important regulation for the top of the company to restrict and supervise each other, and impel the members to achieve the common goal for the company. In order to further study the practical application of corporation bylaws， there are 5 actual corporation bylaws from different industries will be compared and analyzed later. II. Standard template of Corporation By-laws Bylaws widely vary from organization to organization, but generally cover topics such as how directors are elected, how meetings of directors (and in the case of a business, shareholders) are conducted, and what officers the organization will have and a...
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...RISK MANAGEMENT IN BANKS The business of banking today is synonymous with active risk management than it was ever before. The success and failure of a banking institution heavily depends on the strength of the risk management system in the current environment. This is true as the very business of banking is risk-taking as an intermediary, i.e. interposing between savers (depositor) on one hand and the borrower on the other hand, thereby accepting the risks of intermediation. Risk Management: Meaning & Components A risk can be defined as an unplanned event with financial consequences resulting in loss or reduced earnings. Therefore, a risky proposition is one with potential profit or a looming loss. Risk stems from uncertainty or unpredictability of the future. In commercial and business risk generates profit or loss depending upon the way in which it is managed. Risk can be defined as the volatility of the potential outcome. Risk is the possibility of something adverse happening. Risk management is the process of assessing risk, taking steps to reduce risk to an acceptable level and maintaining that level of risk. The essential components of any risk management system are – * Risk Identification: i.e. the naming and defining of each type of risk associated with a transaction or type of product or service; * Risk Measurement: i.e. the estimation of the size, probability and timing of potential loss under various scenarios; * Risk Control: i.e....
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...Morality of the actions of JPMorgan Chase &co. | 3 | 1.2 | Should the boss bear the blame | 5 | 1.3 | Elements of moral judgement | 8 | 1.4 | Where people get their values | 11 | | List of References | 14 | QUESTION 1.1 MORALITY OF THE ACTIONS OF JP MORGAN According to Buchholtz and Carroll (2012) moral management conforms to the highest standards of ethical behaviour or professional standards of conduct, motives, goals orientation towards the law and general operating strategy. Moral management pursues its objectives of profitability, legality, and ethics as both required and desirable. Moral management would not pursue profits at the expense of the law and sound ethics. The operating strategy of moral management is to live by sound ethical standards, seeking out only those economic opportunities that the organization or management can pursue within the confines of ethical boundaries. The organization assumes a leadership position when ethical dilemmas arise. The stakeholders at JPMorgan Chase & Co. case include executives at the bank, other employees, competitors to JP Morgan and those who have accounts, funds, stocks, etc. associated with the bank. The executives of JPMorgan Chase & Co. had one major interest in their positions i.e. to maximize profits for the bank. The executive looked to continue this profit-streak, and keep finding large profits each quarter. According to the normative ethical theories, The JP Morgan Chase &Co executives conformed to...
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...Maldives 7 CHAPTER 3: USING THE FOREIGN EXCHANGE MARKET 8 The Spot Market 8 Analysis of USD/MVR Cross Rate for the Last 1 Month, 3 Months and Last Year 9 CHAPTER 4: USE OF FORWARDS AND FUTURES MARKET 11 Analysis of Future Price Vs Spot Rate 12 CHAPTER 5: USING CURRENCY OPTIONS 13 CHAPTER 6: MONITORING CENTRAL BANK INTERVENTION 14 CHAPTER 7: ASSESSMENT OF SPOTS AND FORWARD RATES 16 CHAPTER 8: DETERMINING WHETHER IFE HOLDS 18 CHAPTER 9: MONITORING EXCHANGE RATE TRENDS 20 CHAPTER 10: EXPOSURES TO EXCHANGE RATE RISK 24 Analysis of the Foreign Exchange Exposures to Fashiona Jewelers 24 CHAPTER 11: FOREIGN EXCHANGE EXPOSURE HEDGING WITH FORWARD AND FUTURE CONTRACTS 26 CHAPTER 12: TRANSACTION AND ECONOMIC EXPOSURES IN THE CASE OF DOLLAR DENOMINATED RECEIVABLES 28 CHAPTER 13: SUMMARY 29 REFERENCES 30 EXECUTIVE SUMMARY Fashiona Jewelers Limited will operate as multinational operating in the United States and Maldives. The company will trade in jewellery which will be purchased in USA and sold in USA and Maldives. Currently, there exist no trade barriers restricting trade between USA and Maldives and jewellery is an import into the country. There is also continued demand for jewellery in Maldives which is driven by increasing number of tourists arriving into the country over the years. The business will be exposed to transaction and economic exposures. There is importance of hedging such exposures as they could have detrimental effects on the firm’s cash...
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...Teaching Cases (2012) 2, 79–86 & 2012 JITTC Palgrave Macmillan All rights reserved 2043-8869/12 palgrave-journals.com/jittc/ Teaching case Understanding the process of backsourcing: two cases of process and product backsourcing in Europe Julia Kotlarsky1, Lars Bognar2 1 2 Aston Business School, Aston University, Birmingham, UK; Google Ireland Ltd., Dublin, Ireland Correspondence: J Kotlarsky, Aston Business School, Aston University, Birmingham, B4 7ET, UK. Tel: þ 44 121 2043116; E-mail: j.kotlarsky@aston.ac.uk Abstract Backsourcing, defined generally as bringing services outsourced to a third party back inhouse, is now a growing phenomenon. The decision to backsource has several significant implications for an organization, as it requires the organization to manage organizational change, reintegrate knowledge, and develop new capabilities and competences. Taking into account there is very limited empirical evidence of how to successfully accomplish the backsourcing process, two case studies included in this teaching case offer additional insight into the process of backsourcing. To prepare students for case analysis, this teaching case starts by describing the backsourcing phenomenon, followed by an overview of the backsourcing trend, and includes a brief review of the relevant literature that mainly focuses on backsourcing decisions and touches on critical success factors for implementing a backsourcing initiative. This is followed by two case studies that describe...
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...Derivative Losses at JPMorgan Chase LaVita Rodriguez Business Government and Society Case Study: Derivative Losses at JP Morgan Chase 1. Does this case indicate that JPMorgan and the federal government were in a collaborative partnership or working at arms length? Why do you think so? In a collaborative partnership the government works closely with organizations in efforts to achieve a common objective that is mutually beneficial. Working at arm’s length is the opposite of a collaborative partnership due to the objectives of the organization and government being opposite, creating an adversarial relationship between them. In the case of JP Morgan and the federal government, they demonstrate working at arm’s length. The federal government imposed regulations that would extend government oversight in the trading of derivatives by implementing government rules that required trades involve intermediaries in public “clearing houses” so that regulators could closely inspect transaction (Lawrence, A. T., & Weber, J., 2014). JPMorgan opposed the idea of trading derivatives in public because it would potentially benefit rivals and compromise the profit of the bank (Lawrence, A. T., & Weber, J., 2014). The objectives of the federal government and JPMorgan do not align. The federal government wants to implement regulations that would work to restructure JPMorgan from being able to take excessive risks that would result in large bailouts being forced onto taxpayers who are already...
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...Case No. 61 .Epsilon 2011 Name : Kartik Kapoor Roll No. 32 Question 1: Study the incident and prepare a write up in your own words describing the incident with focus on the specific information security failure (Maximum of 150 words). Answer 1: The breach occurred on March 30 ‘2011 at Epsilon, a Texas-based firm that handles email communications for more than 2,500 clients worldwide, including seven of the Fortune 10 companies. Epsilon sends 40 billion emails annually. Epsilon is the largest e-mail marketing company in America. Two and a half thousand companies use its services and entrust their customer e-mails to it. At least 50 companies, including Target, Best Buy, Walgreens and JP Morgan Chase, had their client e-mail addresses stolen So far, 26 companies have come forward as affected by the breach. The first company to report the data breach was the grocery chain Kroger. From there, it quickly spiraled, as a barrage of companies came forward over the weekend to report their email databases had been accessed without permission The list currently includes: TiVo, Barclays Bank of Delaware, McKinsey & Company, Marriott Rewards, Ritz-Carlton Rewards, New York & Company, Brookstone, L.L. Bean, Ameriprise Financial, The College Board, The Home Shopping Network, Lacoste, Disney Destinations, Ralphs, Food 4 Less, Fred Meyer, Fry’s, King Soopers, U.S. Bank and City Market. Fortunately for those affected, the stolen email lists included only customers’ names and...
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...gain. The hacker’s dictionary refer to hacking as unauthorized access to computer systems, either for fun or for malicious or fraudulent purposes (Hutchison, 2011). Technology is evolving on a daily basis. The need to protect your computer is at an all-time high. With the right tools, breaking into a computer’s encrypted data is very easy. Princeton did a study of low level tech hackers can access the most well protected computer (Roberton, 2008). The most popular tools the hackers use are Back door remote administrative programs and Denial of Service (DoS) Back door remote works through an uploaded exe file on a website that seems to be trusted. This software is usually spread between pcs. The infected pc communicates with someone via email at a work computer. The infected pc infects the work pc and the virus spread. This is similar to the situation at JP Morgan Chase. The hackers where able to get through via an employee. The FBI is involved because as the writers says the attempted hacking should have stopped but they believe other holes in the system were left unprotected (Goldstein, 2014). The type of breach at Chase was a simple backdoor process which gained the hacker’s access to approximately 90 servers. The breach was discovered but it also uncovered a vulnerability in the infrastructure of a large bank that has challenges protecting their servers on a day to day basis (Krebs, 2014) Denial of Service causes your pc to crash or become busy processing useless data...
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...Services Asia Offshore Department in JP Morgan Chase from 02 June 2008 to 17 May 2012 ➢ Involved in processing Manual & Electronic instructions of the Fund Transfer for the Asia Pacific Region (Singapore, Hong Kong, Indonesia, China, Vietnam, Japan, Australia, Thailand, Philippines ) (MT103, MT202). ➢ Involved in processing OFAC Escalation Process for Asia Pacific Region (Singapore, Thailand, Australia) through the Low Value Box. ➢ Involved in processing payments related to Global Agency Treasury Process ➢ Involved in Processing payments related to World Wide Securities for Australian Market (Processing MT304’s, MT202). ➢ Handled transactions which involves Forex Conversion. ➢ In-depth Knowledge in routing SWIFT payments for different currencies and ensuring processing within the specific cutoff. ➢ Escalation to the senior management in case of any discrepancy identified during the process or payments nearing the cutoff. ➢ Actively participated in the training and other sessions ➢ Migration process done for China markets in Electronics Team. ➢ Had been a Zing Winner for Asia Manuals Team for the year 2008 and for Asia WSS and GAT 2010. ➢ Lowest error maker in the WSS operations ➢ Conducted training sessions for the new joinees and for the Process migration to Philippines team during the offshore study. ➢ Undertook training for GAT...
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...HW1 study guide (will be included in quiz1) 1. As discussed in the chapter opening case, which of the four generic strategies did Verizon employ to combat the competition offered by AT&T? a. low-cost leadership b. focus on market niche c. customer and supplier intimacy d. product differentiation Answer: D 2. According to the ________ definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment. a. microeconomic b. macroeconomic c. sociotechnical d. behavioral Answer: A 3. All of the following are major features of organizations that impact the use of information systems EXCEPT for a. business processes. b. environments. c. goals. d. agency costs. Answer: D 4. Business processes are collections of a. informal practices and behaviors. b. formalized and documented practices. c. routines. d. rights and privileges. Answer: C 5. Mintzberg"s classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n) a. entrepreneurial structure. b. divisionalized bureaucracy. c. professional bureaucracy. d. adhocracy. Answer: C 6. A large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management making is classified by Mintzberg as a ________ bureaucracy....
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...Australian School of Business Banking and Finance FINS3630 BANK FINANCIAL MANAGEMENT Course Outline Semester 2, 2012 FINS3630 – BANK FINANCIAL MANAGEMENT 1 Table of Contents PART A: COURSE-SPECIFIC INFORMATION 1 2 2.1 2.2 2.3 2.4 2.5 3 STAFF CONTACT DETAILS COURSE DETAILS Teaching Times and Locations Units of Credit Summary of Course Course Aims and Relationship to Other Courses Student Learning Outcomes LEARNING AND TEACHING ACTIVITIES 3 3 3 3 3 3 3 4 4 4 5 5 5 5 7 8 9 11 11 11 11 11 12 12 12 12 14 3.1 Approach to Learning and Teaching in the Course 3.2 Learning Activities and Teaching Strategies 4 ASSESSMENT 4.1 Formal Requirements 4.2 Assessment Details 5 6 7 8 9 9.1 9.2 9.3 9.4 9.5 10 11 COURSE RESOURCES COURSE EVALUATION AND DEVELOPMENT COURSE SCHEDULE ACADEMIC HONESTY AND PLAGIARISM STUDENT RESPONSIBILITIES AND CONDUCT Workload Attendance General Conduct and Behaviour Occupational Health and Safety Keeping Informed SPECIAL CONSIDERATION AND SUPPLEMENTARY EXAMINATIONS STUDENT RESOURCES AND SUPPORT PART B: KEY POLICIES, STUDENT RESPONSIBILITIES AND SUPPORT FINS3630 – BANK FINANCIAL MANAGEMENT 2 PART A: COURSE-SPECIFIC INFORMATION 1 STAFF CONTACT DETAILS Lecturer-in-charge: Dr. Lixiong Guo Room: ASB East Wing 363 (Note: Please use the ASB entrance next to the University Bookstore) Phone No: 9385 5773 Email: lixiong.guo@unsw.edu.au Consultation Times: Tuesday 4:30 pm – 6:00 pm (or by appointment) Tutor names: A full list of tutors will be posted...
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