...[Type the company name] | Ethical Breaches in the Bank | A Look in the London Whale Scandal | ACC557 Professor Brandy Havens | Kristi Spann | 1/23/2014 | | In recent times, there have been several ethical scandals that, in some cases, destroyed companies. The most infamous scandal was Enron. Enron was an energy company that was formed in 1985. It was the seventh largest energy company in America. According to Forbes.com, the charges related to knowingly manipulating accounting rules and masking the enormous losses and liabilities of the company. Ultimately charges were brought against the company’s high ranking executives including former CEO Jeff Skilling and his successor Kenneth Lay. They were charged with over twenty charges by the SEC (Securities Exchange Commission) and sentence to prison. Unfortunately, Kenneth Lay passed away before he was sentenced. Scandals like as Enron affected many people such as shareholders, employees, customers, and the economy. Shareholders lost their investments, employees lost their jobs, and customers lost their services. With all the losses, the economy was affected. Because of this scandal, Congress passed the Sarbanes-Oxley Act in 2002. Under this law, corporations would be held accountable for their actions. Organizations are required to be transparent. Under the Sarbanes-Oxley Act in section 302, one of the parts that are required by organizations is for the financial reports to reveal any and all internal...
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...JPMorgan Chase I. Abstract The credit derivatives were introduced in the early 1990s, as large derivatives dealer searched for ways to transfer risk in financial markets. Although the financial innovations have only been used for decades, activity in credit derivations has grown rapidly. According to the Bank for International Settlement, the credit derivatives market reaches $21 trillion in 2014, and the main players for credit derivatives are investment banks, corporations or insurance companies. (Bank for International Settlement, 2014) Credit derivatives are relatively complex financial instrument, since it utilizes the leverage technique to mitigate the credit risk. One the one hand, credit derivatives allow banks to mitigate credit risk, reduce undesired risks and customize their risk profiles. On the other hand, the use of credit derivatives contains potential risks to the company since the market is still new. Users of credit derivatives must recognize and mange numerous associated risks. In fact, the historical evidence has shown that credit derivatives are the major causes to financial crisis. (Borodovsky & Lore, 2000) Although it is important to assess credit risk and market risk in the bank investment, operational risk is the fundamental part to the ultimate success of investment. “Operational risk is the risk of a breakdown in the operations of the derivatives program or risk management system.” (Chance & Brooks, 2012) Operational risk was generally defined...
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...J.P. Morgan Chase Faces Arising Issues Taylor A. Akinmoladun National American University Abstract J.P. Morgan Chase Bank has found their way into a lot of turmoil in recent years. Each having its own affect of the bank’s reputation. The famous Enron scandal is hard to forget, and some of J.P. Morgan’s executives are still being sued over the bank’s relationship with them, even over a decade later. Back in 2005 the bank made an interest rate swap with the city of Milan in which criminal charges are still pending with hearing occurring weekly. J.P. Morgan also made its way into the news over their mortgage foreclosures and mortgage backed securities. There have also been several lawsuits accusing the bank of aiding and abetting Bernie Madoff’s Ponzi scheme, the bank has been sued to get back some of Madoff’s clients’ money. Though all of these things are bad for business, a few things have topped the charts recently. Over the past year J.P. Morgan Chase has been wrapped up in three major issues. The first of which is the bank’s chief investment office’s $5 billion loss. The loss came from gambling on credit derivatives made by Bruno Iksil, “the London Whale”. In addition, traders tried hiding the losses from the home office. The second major issue I will address is the unethical push of their mutual funds. Being one of the country’s largest mutual fund managers, the bank was able to falsely promote and push their own mutual funds over those of better performing competitors. J...
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...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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...decade of the scandal ENRON and associates, the history was repeated, with one of the most prestigious banks, JPMorgan Chase had announced the losses of almost $ 5.8 billion from a dysfunctional trading operation, as a result of gambling with other people’s money, on Wall Street. JPMorgan’s report to the SEC that the bank recorded a $718 million loss from the London trades on its internal accounts, but did not report the loss in its first quarter earnings statement. Malicious act done with the falsification of its reports filed with the SEC, hiding large losses by declaring profit of $ 5 billion. The damage caused by JPMorgan Chase affected many people with their savings and credit through credit cards supported by this institution. Here the five biggest scandals at JPMorgan Chase: Energy scandals, where American government investigators say JPMorgan traders in Houston came up with eight different manipulative schemes to offer electricity to California and Michigan at prices to falsely appear attractive. The London Whale where JPM loss is $ 6.2 billion. Enabling Madoff, where JPM is responsible about $ 17.3 billion in investor money that was lost. LIBOR scandal, a key interest rate used in derivatives markets. The banks allegedly rigged the rates for profit, while costing other markets that use the rates – such as mortgage companies – billions. JPMorgan is one of banks Freddie Mac is suing over the LIBOR scandal. And finally the Credit cards Scandals where JPMorgan...
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...Ethics are the principles that dictate an individual or group of individual’s actions. ("Ethics," 2013) This simple concept of differentiating between right and wrong explains the motivation of every individual who has ever lived. Their ethics guide them through the decisions they make in a lifetime. In this assignment I will attempt to recommend an ethical decision that is presented to a recent top graduate from Liberty University named Benji. From our reading we learn that Benji is invited to attend an event at the New Gen Health Services headquarters. We are told that Benji accepts this all inclusive invitation and decides the opportunity is worth the trip. While awaiting his flight to Seattle Benji takes the opportunity to learn a little about the company that is attempting to recruit him. Once he begins his search Benji learns of some of the good things that the company does. He finds that New Gen sends researchers around the world in an attempt to find new beneficial health services. This action seems to be reinforced with another article that interviews the CEO who professes his mission of creating a healthier America and touting the companies leading ethics code. Having found these articles as well as many supporting the financial wellness of company Benji seems to have found a great company to work for. As it is with many situations things that appear too good to be true usually are. With continued researched Benji begins to find articles that paint a different picture...
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...A Tale of Two Londons Who really lives at One Hyde Park, called the world’s most expensive residential building? Its mostly absentee owners, hiding behind offshore corporations based in tax havens, provide a portrait of the new global super-wealthy. BY NICHOLAS SHAXSON Up until the 18th century, Knightsbridge, which borders genteel Kensington, was a lawless zone roamed by predatory monks and assorted cutthroats. It didn’t come of age until the Victorian building boom, which left a charming legacy of mostly large and beautiful Victorian houses, with their trademark white or cream paint, black iron railings, high ceilings, and short, elegant stone steps up to the front door. This will not be the impression a visitor now gets as he emerges from the Knightsbridge subway station’s south exit. He will be met by four hulking joined-up towers of glass, metal, and concrete, sandwiched between the Victorian splendors of the Mandarin Oriental Hotel, to the east, and a pretty five-story residential block, to the west. This is One Hyde Park, which its developers insist is the world’s most exclusive address and the most expensive residential development ever built anywhere on earth. With apartments selling for up to $214 million, the building began to smash world per-square-foot price records when sales opened, in 2007. After quickly shrugging off the global financial crisis the complex has come to embody the central-London real-estate market, where, as high-end property consultant...
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...cutting their feed allotment by nearly half and raising them on special diets. 2. Organized in 1966 by the Fish and Wildlife Service, the Breeding Bird Survey uses annual roadside counts along established routes to monitor changes in the populations of more than 250 bird species, including 180 songbirds. 3. Less than 35 years after the release of African honeybees outside Sao Paulo, Brazil, their descendants, popularly known as killer bees, had migrated as far north as southern Texas. 4. Excited about the prospects of harnessing Niagara Falls to produce electric power, Nikola Tesla, the inventor of alternating current, predicted in the mid-1890's that electricity generated at Niagara would one day power the streetcars of London and the streetlights of Paris. 5. The airline company, following through on recent warnings that it might start reducing service, announced that it was eliminating jet service to nine cities, closing some unneeded operations, and grounding twenty-two planes. 6. The list of animals that exhibit a preference for using either the right or the left hand (i.e., claw, paw, or foot) has been expanded to include the lower vertebrates. 7. Obtaining an investment-grade rating will keep the county's future borrowing costs low, protect its already-tattered image, and increase its ability to buy bond insurance. 8. The Achaemenid Empire of Persia reached the Indus Valley in the fifth century B.C., bringing with it the Aramaic...
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...9-803-127 REV: DECEMBER 2, 2010 NANCY F. KOEHN Leadership in Crisis: Ernest Shackleton and the Epic Voyage of the Endurance For scientific discovery give me Scott; for speed and efficiency of travel give me Amundsen; but when disaster strikes and all hope is gone, get down on your knees and pray for Shackleton. — Sir Raymond Priestley, Antarctic Explorer and Geologist On January 18, 1915, the ship Endurance, carrying a highly celebrated British polar expedition, froze into the icy waters off the coast of Antarctica. The leader of the expedition, Sir Ernest Shackleton, had planned to sail his boat to the coast through the Weddell Sea, which bounded Antarctica to the north, and then march a crew of six men, supported by dogs and sledges, to the Ross Sea on the opposite side of the continent (see Exhibit 1).1 Deep in the southern hemisphere, it was early in the summer, and the Endurance was within sight of land, so Shackleton still had reason to anticipate reaching shore. The ice, however, was unusually thick for the ship’s latitude, and an unexpected southern wind froze it solid around the ship. Within hours the Endurance was completely beset, a wooden island in a sea of ice. More than eight months later, the ice still held the vessel. Instead of melting and allowing the crew to proceed on its mission, the ice, moving with ocean currents, had carried the boat over 670 miles north.2 As it moved, the ice slowly began to soften, and the tremendous force of distant currents...
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...Fold along perforation before detatching cards abridge ˘ (´ BRI J) abstract ˘ (ab STRAKT) acclaim ¯ (´ KLAM) adulation ¯ (a j´ LA sh´n) ˘ adversary ˘ (AD vû(r) se r e ˘ ¯) adversity ¯) (a VÛ(R) s´ te ˘d advocate ˘ ¯ (AD v´ ka t) aesthetic ˘ ˘ (e THE tı k) ˘s affirmation ¯ (a f´ r MA shun) ˘ v. condense or shorten. v. applaud; announce with great approval. also n. adj. theoretical; not concrete; nonrepresentational. The NBC sportscasters acclaimed every American victory in the Olympics and decried every American defeat. To him, hunger was an abstract concept; he had never missed a meal. Because the publishers felt the public wanted a shorter version of War and Peace, they proceeded to abridge the novel. n. poverty; misfortune. n. opponent. n. flattery; admiration. We must learn to meet adversity gracefully. The young wrestler struggled to defeat his adversary. The rock star thrived on the adulation of his groupies and yes-men. n. positive assertion; confirmation; solemn pledge by one who refuses to take an oath. adj. artistic; dealing with or capable of appreciation of the beautiful. aesthete, n. v. urge; plead for. Despite Tom’s affirmations of innocence, Aunt Polly still suspected he had eaten the pie. The beauty of Tiffany’s stained glass appealed to Esther’s aesthetic sense. The abolitionists advocated freedom for the slaves. Fold along perforation...
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...Best Global Brands 2013 Table of Contents JEZ Leadership is evolving. It must now be shared. CEOs, CMOs, and consumers all have the power to drive brand value. Brands are where business strategy meets reality. GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Best Global Brands 2013 Sector Leadership 86 BISH 10 Creative Leadership 70 Methodology 120 China’s New Brand Leaders 74 Contributors 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership...
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...Best Global Brands 2013 Table of Contents JEZ Leadership is evolving. It must now be shared. CEOs, CMOs, and consumers all have the power to drive brand value. Brands are where business strategy meets reality. GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Sector Leadership Best Global Brands 2013 10 86 BISH Methodology Creative Leadership 70 120 Contributors China’s New Brand Leaders 74 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership roles...
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...Rhetorical Terms/Devices Figurative language is the generic term for any artful deviation from the ordinary mode of speaking or writing. It is what makes up a writer’s style – how he or she uses language. The general thinking is that we are more likely to be persuaded by rhetoric that is interesting, even artful, rather than mundane. When John F. Kennedy said, “Ask not what your country can do for you, ask what you can do for your country” (an example of anastrophe), it was more interesting – and more persuasive – than the simpler, “Don’t be selfish.” Indeed, politicians and pundits use these devices to achieve their desired effect on the reader or listener nearly every time they speak. The stylistic elements in a piece of writing work to produce a desired effect related to the text’s (and author’s) purpose, and thus reveals the rhetorical situation. In classical rhetoric, figures of speech are divided into two main groups: Schemes — Deviation from the ordinary pattern or arrangement of words (transference of order). Tropes — Deviation from the ordinary and principal meaning of a word (transference of meaning). *Important Note: Words marked with an asterisk* are words for which it would be impossible for you to write 3 examples for your weekly vocabulary assignment. In those cases, please write only the definition, in your own words, and the rhetorical uses/effect of that device, or do what you are instructed to do under those words. Please mark these words that deviate...
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...Literary Theory: A Very Short Introduction ‘Jonathan Culler has always been about the best person around at explaining literary theory without oversimplifying it or treating it with polemical bias. Literary Theory: A Very Short Introduction is an exemplary work in this genre.’ J. Hillis Miller, University of California, Irvine ‘An impressive and engaging feat of condensation . . . the avoidance of the usual plod through schools and approaches allows the reader to get straight to the heart of the crucial issue for many students, which is: why are they studying literary theory in the first place? . . . an engaging and lively book.’ Patricia Waugh, University of Durham Very Short Introductions are for anyone wanting a stimulating and accessible way in to a new subject. They are written by experts, and have been published in 15 languages worldwide. Very Short Introductions available from Oxford Paperbacks: ANCIENT PHILOSOPHY Julia Annas THE ANGLO-SAXON AGE John Blair ARCHAEOLOGY Paul Bahn ARISTOTLE Jonathan Barnes Augustine Henry Chadwick THE BIBLE John Riches Buddha Michael Carrithers BUDDHISM Damien Keown CLASSICS Mary Beard and John Henderson Continental Philosophy Simon Critchley Darwin Jonathan Howard DESCARTES Tom Sorell EIGHTEENTH-CENTURY BRITAIN Paul Langford The European Union John Pinder Freud Anthony Storr Galileo Stillman Drake Gandhi Bhikhu Parekh HEIDEGGER Michael Inwood HINDUISM Kim Knott HISTORY John H. Arnold HUME A. J...
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...The Socially Responsible Oil Company: An Examination of Corporate Ethics by Peter Fischer A Paper Submitted in Fulfillment of the USD School of Law Writing Requirement Energy Law Professor Burleson Spring, 2009 Table of Contents Introduction 2 Background 3 The Need for CSR at Home and Abroad 7 Case Study Analyses: Four Critical Events in the Oil Industry and their Effect on CSR Case Study #1: The Exxon Valdez Oil Spill 9 Case Study #2: Occidental and the Piper Alpha Disaster 12 Case Study #3: A Two-Part Analysis of Shell in the Mid-1990s a) Shell’s Human Rights Violations in Nigeria 16 b) Shell’s Response—Outsource CSR 21 Case Study #4: BP’s Major Advances in CSR 24 Ethics and the Problem of the Public Relations Quick Fix 27 Analyzing the Current Corporate Culture: Failure to Meet the Triple Bottom Line 32 Conclusion 38 Works Cited…………………………………………………………………...…………41 Introduction Over the past twenty years an irrefutable shift in the oil industry has occurred—the shift to Corporate Social Responsibility (CSR).[1] The purpose of this paper is to analyze the motivation behind this shift and determine if these CSR practices are genuine. In other words, does the adoption of CSR denote a tangible change in the way oil companies operate, or is it merely an elaborate public relations exercise? To answer...
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