Jp m organ516180 saketh ram samineni - analysis- investigati

JP MOrgan/516180 - Saketh Ram Samineni - Analysis-
Investigating Reasons behind the Criminal Probes Facing JP
Morgan - 101716 (1).doc
Morgan
Analysis
“Investigating Reasons behind the Criminal Probes Facing JP
Morgan”
A research analysis submitted in partial fulfilment of Master’s
degree in Computers and Information Systems.
Submitted to
Dr. Asila Sayedi
By
Saketh Ram Samineni
ID: 516180
California University of Management and Sciences, Virginia.
Date: October 17, 2016
JP MORGAN ANALYSIS
Introduction
JP Morgan Chase is universally acknowledged as a financial
holding company that offers commercial and consumer banking
services under the guidance of Chase brand. Additionally, its
consumer business revolves around small business, small credit
cards, auto-finance, commercial term lending and equipment
finance among others (Smart & Creelman, 2013). Moreover, the
company offers services in fiancé to governments, corporations,
institutional investors, and wealthy individuals under its JP

Morgan brand. Furthermore, it also deals in financial
transaction activities, private equity services, and asset
management (Anderson, 2013). In essence, the bank coupled
with its non-bank activities operate throughout the country,
through subsidiaries and overseas branches, subsidiary foreign
banks and representative offices. However, its main headquarter
offices are found in The United States in New York City
(Pultarova, 2014).
A number of challenges, one being the long strings of criminal
probes that have hampered its reputation and financial progress
has of recent faced JP Morgan. Given the fact that JP Morgan is
one of the dominant banking institutions in the history of
America, it is somewhat questionable to believe the situation
the bank has found itself. One simple reason can be the fact
that its management is not really keeping track of the activities
that is going around the operation of the banking sector.
Additionally, the criminal probes that the bank is currently
facing are one of the largest penalties that a bank has ever been
slammed with in the history. In fact, this is evidenced by the
fact that its criminal probes are supplanting HSBC’s a $ 1.2
billion penalty that was accorded to them for money laundering.
However, the problems that JP Morgan is currently facing can
be analyzed using the SWOT analysis and PESTLE analysis in
order to identify some of the areas that made the bank to incur
some challenges and how these challenges can be solved. The
SWOT analysis will be helpful in establishing the current
situation at JP Morgan whereas the PESTLE analysis will be
crucial in determining some of the environmental factors that
either are affecting the progress of JP Morgan or can help the
bank to move forward from their current situation.
I. SWOT ANALYSIS
A. Strengths

Chase bank possesses an extensive consumer base that is one of
their greatest strengths. Additionally, JP Morgan is universally
accepted as the most prominent bank in America. Moreover, the
iterative mergers that took place to establish this extensive
banking institution imply that the accessibility and the
infrastructure of the JP Morgan as a financial institution are
huge (Duffy & O’Rourke, 2015). In simple terms, these
financial facts clearly indicate that JP Morgan is a more stable
bank as a premier banking institution that ensures that it can put
up with any fiscal shocks, challenges in the long –term and in
the short-term; this entails the many criminal probes that it is
currently facing.
B. Weaknesses
One of the weaknesses that JP Morgan is currently facing is the
fact that it has damaged its brand name over the years. In this
case, a number of scandals have played a downside role in the
reputation of the bank. For instance, in the year 2002, JP
Morgan was fined a lump sum some $ 80 million to the U.S
government for deceiving investors through a market research
that was deemed biased (Duffy & O’Rourke, 2015). Moreover,
another example where the trust of the consumers in JP Morgan
derailed when the bank appeared to overcharge the military
personnel’s mortgages. In other words, this failure to offer
consumers the much- needed protection has been a repeated
case for quite some time now and in the process, it may erode
their long-term customer loyalty base. In the process, JP
Morgan needs to establish measures that will help it review its
policies on a more constant level by taking into consideration
the consumer feedback extensively.
C. Opportunities

By Merging with Bank One, JP Morgan has embarked on a
number of myriad business options Duffy & O’Rourke, 2015).
Additionally, this merger can be said to have opened up new
business opportunities for JP Morgan by expanding its presence
in the Midwest since in this region, Bank One is accepted as a
market leader. By using this partnership, JP Morgan can be able
to reduce the impact of the bank probes leveraged against it.
Moreover, JP Morgan has established roots in over 60 countries
around the globe (Anderson, 2013). However, it can be argued
that the bank has an open opportunity to expand its business
operations but it is not vigorously pursuing the idea.
D. Threats
JP Morgan is facing stiff competition from international and
local banking sectors most especially given the current criminal
probes the bank is facing and the restrained economic climates
(Kaur & Malhotra, 2016). Now, it can be argued that the bank
has tried, as much as possible to remain afloat based on the rich
vein of assets and financial probes it possesses (Anderson,
2013). In this case, JP Morgan has to establish ways that can
ensure that its criminal probes does not offer a competitive
advantage to its competitors like Citigroup (Professional
academy, 2016).
II. PESTLE ANALYSIS
PESTLE stands for Political, economic, social, technological,
environmental and legal (Professional academy, 2016).This
analysis is mainly used to analyse the external environmental
factors.
a. Political factors
Being a multinational banking institution that operates around

the globe, JP Morgan has a number of political factors that are
affecting its overall banking performance (Duffy & O’Rourke,
2015). Additionally, being a multination asset company is much
profitable but any instability in the political factors in the
country in which they are operating may result in adverse
implications (Anderson, 2013). In this case, heavy taxations and
legal assistance because of the high criminal probes that the
Bank ids facing can result into a high and fall situation to the
banking sector (Anderson, 2013). In fact, it is because of the
heavy legal penalties and regulations that JP Morgan is
currently under criminal probes.
b. Economic factors
JP Morgan is one of the leading financial asset management
banks in the history of America. In this case, by analysing its
economic environment, it is clear that the current situation in
the banking industry can be effectively being determined (Duffy
& O’Rourke, 2015). In this case, Because of the inflation
situation in the U.S, most investors are of the opinion that the
unprecedented monetary and fiscal stimulus can result in the
reduction in value of the U.S Dollar and in the process, lead to
higher level so inflation. In so doing, this can make JP Morgan
to lose its potential investors in the wake of the on-going
criminal probes for fear of the company collapsing. On the
consumer level, based on the current situation, it can be said
that the consumer confidence of JP Morgan is admirably high
(Kaur & Malhotra, 2016).
c. Social
The cultural and social influences to business operations vary
depending on the country. In this case, investing in a country
that has stable income and labour are important for the success
of JP Morgan. In this case, JP Morgan must invest in countries

that possess stable income levels, stable wages, and labour
(Duffy & O’Rourke, 2015).
d. Technological
JP Morgan takes a multi-faced approach when it comes to
technological sustainability that makes an important component
of their operations (Duffy & O’Rourke, 2015). In this case,
most of their technological adoption is mainly driven by the
growth of their financial services coupled with regulatory
obligations. In so doing, JP Morgan has tried to influence
vendors to offer approaches and products that maintain or
reduce costs while at the same time increase product utilization
(Anderson, 2013). In fact, JP Morgan has established
engineered solutions that ensure maximization of resource
efficiency.
e. Legal
This is the most important part of the recommendation strategy
mainly because the current criminal probes that JP Morgan
result from the fact that it went against some legal frameworks
that govern the banking sector (Duffy & O’Rourke, 2015). In
other words, since JP Morgan invests heavily in cyber insurance
coupled with other legal agreements that allow the government
to take necessary controls in case of any malice activity, it is
possible for JP Morgan to undergo various criminal probes and
investigations that are allowed by the constitution and the
banking sector Regulation ACT. However, by establishing legal
agreements with the government that will see to it that the
government intervenes in case of a problem will ensure that JP
Morgan stays secure in a big way.
f. Environment

In case of adverse climatic conditions and natural calamities
like drought, then JP Morgan will be handed with a financial
blow (Kaur & Malhotra, 2016). However, the challenges that
can be incurred because of adverse climatic conditions and
natural calamities can be dealt with through proper insurance
policies (Anderson, 2013). However, as much as these assets
can be recovered through insurance, it is acknowledged that any
calamity on a big investment bank can cause a temporary fall in
its stocks.
References
Smart, A., & Creelman, J. (2013). Risk-Based Performance
Management: An Explanation of This New Strategic Paradigm.
In Risk-Based Performance Management (pp. 23-52). Palgrave
Macmillan UK.
Anderson, K. (2013). A feasibility plan to develop a boutique
sustainable private equity business to cater for ultra-high net
worth individuals (Doctoral dissertation, Stellenbosch:
Stellenbosch University).
Duffy, M., & O’Rourke, B. K. (2015). Dialogue in Strategy
Practice A Discourse Analysis of a Strategy Workshop.
International Journal of Business Communication, 52(4), 404-
426.
Kaur, R., & Malhotra, H. (2016). SWOT Analysis of M-
Commerce. Securing Transactions and Payment Systems for M-
Commerce, 48.
Professional academy. (2016). Marketing theories- Pestel
analysis. Retrieved from
http://www.professionalacademy.com/blogs-and-

advice/marketing-theories---pestel-analysis.
Pultarova, T. (2014). JPMorgan suffers massive data breach
despite cyber-security investment.
Engineering and Technology magazine. Retrieved from
http://eandt.theiet.org/news/2014/oct/jp-morgan-cyber-
attack.cfm
8
JP MOrgan/516180 - Saketh Ram Samineni - Outline -
Morgan - 101716 (2).docx
Morgan
A research outline submitted in partial fulfillment of MS611
project
Submitted to
Dr. Asila Sayedi
By
Saketh Ram Samineni
ID: 516180

OUTLINE
1. Abstract
1. Introduction
1. Analysis
2. Industry analysis
2. Company analysis
1. PEST analysis
3. Political
3. Environmental
3. Social
3. Legal
1. SWOT analysis
4. Strengths
4. Weaknesses
4. Opportunities
4. Threats
1. Recommendations and implementations
5. Insufficient Establishing of clear-cut measures of buying and
selling of mortgage-backed securities
0. Ran stress tests in all the markets that are served by JP
Morgan
0. Focus on the market disparities and fund flows
0. Assess the consequences of the Brexit vote for its operation
as well as its customers
5. Establishing an ethics and anti-corruption committee
1. Train the top management and the individuals responsible for
brokering business deals for JP Morgan on the importance of
practicing integrity and the dangers associated with engaging in
corruption scandals.
1. Promoting transparency and liquidity in a manner that
supports the integrity of the market and financial liquidation
1. Maintaining a concrete and robust control environment while
conducting business deals associated with JP Morgan
5. Establish measures that will keep track of the company assets

and maintain its properties
2. Manage extensive assets positions with integrity and care
2. Establish an external control environment that will ensure
that each and every company property is in accordance with
applicable regulations, laws, self-regulatory company rules and
best property management rules
2. Establishing internal property and asset monitoring policies
in an effort to further the ability of JP Morgan in identifying
specific property trends, strategies, trends or behaviors within
the property and asset management regulations that may cause
triggers for mandatory business and property compliance
review.
1. Conclusion
1. References
JP MOrgan/516180 - Saketh Ram Samineni - Recommendations
and Implementations- Investigating Reasons behind the
Criminal Probes Facing JP Morgan - 102416 (1).doc
Criminal Probes Facing JP Morgan
Reasons behind the Criminal Probes Facing JP Morgan
Recommendations and Implementations
Submitted to
Dr. Asila Sayedi
By
Saketh Ram Samineni
ID: 516180

OUTLINE
I. Abstract
II. Introduction
A. Background
B. Purpose of Study
III. Problem Statement
IV. JP Morgan Overview
V. Analysis
A. PESTEL analysis
i. Political Factors
ii. Economic Factors
iii. Social-Cultural Factors
iv. Technological Factors
v. Environmental Factors
vi. Legal Factors
B. SWOT analysis
i. Strengths
ii. Weaknesses
iii. Opportunities

iv. Threats
VI. Recommendations and implementations
A. Establishing an ethics and anti-corruption committee
i. Train the top management and the individuals responsible for
ii. Promoting transparency and liquidity in a manner that
iii. Maintaining a concrete and robust control environment
while conducting business deals associated with JP Morgan
B. Insufficient Establishing of clear-cut measures of buying and
selling of mortgage-backed securities
i. Ran stress tests in all the markets that are served by JP
Morgan
ii. Focus on the market disparities and fund flows
iii. Assess the consequences of the Brexit vote for its operation
as well as its customers
C. Establish measures that will keep track of the company assets
i. Manage extensive assets positions with integrity and care
ii. Establish an external control environment that will ensure

iii. Establishing internal property and asset monitoring policies
in an effort to further the ability of JP Morgan in identifying
review.
VII. Importance of the project
VIII. Projections and Benefits
IX. Conclusion
X. References
VI. Recommendations and Conclusions
A. Establishing an ethics and anti-corruption committee
Ethics are the values and principles an individual possess to
govern his decisions and activities. Additionally, in an
organization, ethical codes are a set of principles that are able
to guide the company in its policies, programs, and decisions
for the business. In other words, the ethical philosophy
employed by an organization is very crucial to the productivity,
reputation and the bottom line of the business operations
(Shahin & El-Achkar, 2016).
i. Leadership ethics
Training the top management and the individuals responsible for
corruption will be crucial in eliminating some of the negative

implications caused by criminal probes (Ferrell & Fraedrich,
2015). The ethics that leaders in an organization employ to
control and mange employees may as well play a very crucial
role in the overall functioning of the organization since it
affects the loyalty and morale of its works (Harrison, & Ryder,
2016). Therefore it is important for JP Morgan to establish a
code of ethics that its leaders may employ in determining
acceptable behavior in the organization and discipline
procedures. In this case, education and a higher level of training
in ethical matters may assist JP Morgan to reduce the number of
criminal probes that it is currently facing (Jacob & Antony,
2014). Apparently, when leaders demonstrate exemplary ethical
behavior, it can be noted that the reputation of the company in
the financial circles and the community are enhanced. In
essence, a solid reputation for JP Morgan in the financial
market may help it to regain some of the lost customer trust and
hence reduce the level of involvement in fraud activities.
ii. Maintenance of concrete business environment among
employees
One advantage that ethical behavior does to an organization
regarding the employee’s behavior is the fact that, an ethically
sound worker always upholds integrity and completes his work
with honest. Additionally, those workers who use ethics as the
moderating factor of their behavior are acknowledged to adhere
to the company’s rules and reputations while at the same time
striving to realize the goals and objectives of the organization.
Moreover, ethical employees also meet the required work
standards in terms of quality and deadlines.
iii. Promoting transparency and integrity at JP Morgan
Leaders and workers adhering to the ethical code of conduct
while at work always establish an ethical organizational culture.

In this case, through proper training, JP Morgan management
team can establish a great atmosphere in terms of ethical culture
by acting as role models (Suja & Raghavan, 2014). In other
words, JP Morgan can as well reinforce the ethical behavior by
giving rewards to employees who are known to exhibit integrity
and values that coincide with the code of the company and
disciplining those members that disobey the company’s code of
conduct (Gottschalk, 2016). With an ethical culture in an
organization, the morale of the workers are high and in the
process, the financial performance and net revenues of JP
Morgan will improve hence reducing the chances of being
involved in illegal transactions to boost their financial position.
B. Establishing of clear-cut measures of buying and selling of
mortgage-backed securities
i. Assessing the impact of Brexit vote
The implications of Brexit vote could go either way and it is
accepted that only time will be able to give a clear picture of
what is at stake. Consequently, it can be argued that even if
Britain maintains its connection with other European countries,
the seeds of uncertainty as far as some of the global financial
institutions like JP Morgan have already been planted. In this
case, the Brexit vote is troubling and endangering the rejection
of economic integration and free trade since the survival of
Europe and other global financial institutions can only survive
if its members and workers are able to make shared sacrifices.
In this case of JP Morgan, the members must be able to do
everything within their power to stop the company from doing
something that is forbidden under the law to avoid the
consequences of criminal probes.
ii. Focus on the market disparities and fund flows

Jp Morgan is committed to being one of the most respected and
influential financial institutions around the globe growing its
communities globally and serving its customers well. However,
the ongoing financial probes are trying to reduce its progress as
a financial institution. Therefore, to realize its objectives, JP
Morgan must establish strategies that enable it to deliver
superior long-term values, satisfaction, and benefits to its
shareholders (Ferrell & Fraedrich, 2015). In other words, it is
through maintaining and building a vibrant and healthy
company that they may be able to make investments in the long-
run. In other words, its activities must be unquestionably sound
in terms of legal requirements so that it may be able to avoid
the heavy penalties and fines that are slammed on organizations
when they fall on the wrong side of the law.
iii. Developing a training plan that encourages legal compliance
Before JP Morgan establishes a training program that will
ensure that its members and the organization at large complies
with the legal requirements, it is important for it to conduct a
research about the current situation that the company is going
through. In other words, most employers are of the opinion that
good training program is instrumental in the success of the
organization hence the company that can realize positive
revenues is the one that will establish a training program that is
unique and different from other competitors (Quigley, 2015). In
essence, some of the training skills that can be developed at JP
Morgan include literary, organiza tion orientation, technical
skills and other skills in relationship to property management
and acquiring (Tajpour, Ibrahim & Zamani, 2013). In the case
of JP Morgan, training programs to prevent sexual harassment,
lawsuits and other programs designed to curb issues of audits
safety training coupled with ethical training will be very
influential in helping it to solve its challenge of criminal probes
(Jacob & Antony, 2014). Moreover, it is important for JP

Morgan to establish measures that will ensure that the person
conducting the training program as the supervisors is qualified
in matters of the law. In simple terms, mostly companies
training programs fails because the training supervisor does not
possess the necessary skills in the field required to develop the
worker's ability (Arvind, Gray & Wilson, 2016).
C. Establish measures that will keep track of the company assets
i. The use of reasonable care
The employment of reasonable care by an employer can be
established in cases where the employer of an organization
disseminates, establishes and enforces an anti-harassment policy
coupled with a clear explanation of the conduct that is
prohibited periodically to each and every worker of the
organization. In the case of Jp Morgan, the top management
must establish a clearly described complaint process that will
see to it that any public complaints, government investigations,
and criminal probes that are currently on-going are clearly
accessible to ensure a forthright solution is arrived at amicably
(Yeoh, 2016).
ii. Manage extensive assets positions with integrity and care
Assets of a financial institution are one of the most crucial and
fundamental assets of the organization. In this case, In order for
JP Morgan to avoid legal probes associated with property
mortgages, it should establish clear measures in place that
ensures that the company is operating with a high level of
integrity (Shelley & Picarelli, 2002).
iii. Establish an external control environment that will ensure

External control environments will ensure that JP Morgan
keeps track of all the assets controlled by its name. In this case,
this can be achieved through establishing internal property and
asset monitoring policies in an effort to further the ability of JP
Morgan in identifying specific property trends, strategies,
trends or behaviors within the property and asset management
regulations that may cause triggers for mandatory business and
property compliance review (Sudjianto, et al, 2012)
References
Arvind, T. T., Gray, J., & Wilson, S. (2016). 11. From the mid
nineteenth-century bank failures in the UK to the twenty-first-
century Financial Policy Committee: changing views of
responsibility for systemic stability. Complexity and Crisis in
the Financial System: Critical Perspectives on the Evolution of
American and British Banking, 261.
Gottschalk, P. (2016). Investigation and prevention of financial
crime: Knowledge management, intelligence strategy and
executive leadership. CRC Press.
Harrison, K., & Ryder, N. (2016). The law relating to financial
crime in the United Kingdom. Routledge.
Jacob, N. A., & Antony, G. V. (2014). INSIDER
INFORMATION SECURITY THREATS IN INDIAN BANKING
CONTEXT. International Journal of Information Technology &
Computer Sciences Perspectives, 3(4), 1220.Casas-Zamora, K.
(Ed.). (2013). Dangerous Liaisons: Organized Crime and

Political Finance in Latin America and Beyond. Brookings
Institution Press.
Quigley, R. (2015). Impulse towards Individual Criminal
Punishment after the Financial Crisis, The. Va. J. Soc. Pol'y &
L., 22, 103.
Shahin, W., & El-Achkar, E. (2016). Banking and Monetary
Policies in a Changing Financial Environment: A Regulatory
Approach. Routledge.
Shelley, L. I., & Picarelli, J. T. (2002). Methods not motives:
Implications of the convergence of international organized
crime and terrorism. Police Practice and Research, 3(4), 305-
318.
Sudjianto, A., Nair, S., Yuan, M., Zhang, A., Kern, D., & Cela-
Díaz, F. (2012). Statistical methods for fighting financial
crimes. Technometrics.
Suja, P., & Raghavan, N. (2014). cybercrime in banking sector.
International Journal of Research in Social Sciences, 4(1), 189.
Tajpour, A., Ibrahim, S., & Zamani, M. (2013). Identity Theft
Methods and Fraud Types. IJIPM: International Journal of
Information Processing and Management.
Yeoh, P. (2016). Corporate governance failures and the road to
crime. Journal of Financial Crime, 23(1), 216-230.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical
decision making & cases. Nelson Education.
1
JP MOrgan/516180-Saketh Ram Samineni-Literature Review-
CRIMINAL PROBES IN JP MORGAN-101016 (2).doc

LITERATURE REVIEW Criminal Probes In JP Morgan
CRIMINAL PROBES IN JP MORGAN
LITERATURE REVIEW
Submitted to
Dr. Asila Sayedi
Submitted By
Student Name: Saketh Ram Samineni
Student ID: 516180
California University of Management and Sciences
Date: October 10,2016
Criminal Probes Facing JP Morgan
Criminal Probes that JP Morgan is Currently Facing-Statement
of the Problem
On September 24, 2016, the Wall street journal was of the
opinion that JP Morgan was offering $ 3 billion to the
government as settlement of an unspecified number of criminal
investigations after the justice department threatened to file
probes in an investigation that accompanies its pre-crisis
mortgage (Krimsky & Simoncelli, 2013). In other words, this
figure is believed to be enormous but based on the number of
cases that the payment is meant to resolve, it would go down in
history as the highest bank-payout in the financial regulation
history. In other words, being one of the largest banks in the
American history, it is wise to argue that individuals are not
keeping track of the progress and the troubles this bank has
found itself in. Apparently, its management and financial
analysis team can be said to ignore their obligations based on
the predicaments facing the largest bank-holding asset in the
U.S. In fact, this is evidenced by the fact that its criminal

probes are supplanting HSBC’s a $ 1.2 billion penalty that was
accorded to them for money laundering (Shelley & Picarelli
2002).
Some of the Outstanding Investigations of JP Morgan-Purpose
Residential mortgage-backed securities are some of the
outstanding investigations. In this case, JP Morgan is being
investigated for allegedly misrepresenting the underlying home
loans quality in mortgage bonds that is it sold. Additionally, the
taxpayer of the United States incurred losses of approximately$
33 billion when the government bailed out the housing lenders
of Freddie mac and Fannie Mae. Apart from the mortgage
securities probe, the Manhattan Us Attorney is establishing
whether JP Morgan employees criminally blurred an
investigation into an alleged manipulation of the electricity
market by the bank. Another pending investigation that JP
Morgan is currently facing revolves around the fact that the
company was alleged to have hired the children of Chinese
politicians who are believed to be very powerful in an act that
was considered as bribery. In fact, some people wondered
whether this was just an old-fashioned-nepotism (Shahin & El-
Achkar, 2016).
Dealing with Criminal Probes
Banks face extensive operating costs and complexity that is
associated with businesses with an increasing scope of criminal
probes and growing legal frameworks and regulatory liabilities
hence highlighting the need and demand for a more unified and
integrated approach to risk compliance and mitigation.
Additionally, top financial executives areas of recent concerned
about the ever increasing sophistication of criminal probes or
rather financial crimes including terrorism financing, money
laundering, fraud, tax evasion, internal threats, and bribery. In
this case, while this is happening, the number of banks and
financial institutions facing the wrath of the legal framework
and regulatory policies in the UK, U.S, and other European

Union countries has increased tremendously in recent years. In
fact, the increasing level of territorial enforcements has
increased the challenges associated with the banking
compliance hence increasing the complexity and complexity of
business operations (Sudjianto et al., 2015).
Banks have invested heavily in compliance management and
risk management. However, their fragmented and dispersed
approach to crimes of financial nature has possessed limited
success when it comes to staving off adversaries, threats and
realizing the regulatory requirements of financial institutions.
In so doing, this has resulted in increased money spending and
violations on regulatory compliance. One sure thing is the fact
that banks need to reestablish their approach to dealing with
financial crimes while at the same time fostering regulatory
compliance. It is important for banks to establish ways in which
they can adapt to the ever-changing regulatory and criminal
landscape. To realize these objectives the banking sector must
conduct a risk assessment based on the products of the bank,
geographies, products, and services to better understand the
threat and adversaries environment. Second, the banking sector
should integrate efforts incorporated from various disciplines as
far as financial crime prevention is concerned across the
company to identify overlaps and synergies in individuals,
technologies, processes that will ensure that it reduces
redundancies and in the process , it helps in streamlining the
banking processes (Harrison & Ryder, 2016).
Moreover, the banking sector should as well improve on data
quality and availability to obtain a holistic picture of the
adversaries, entities and the reasons behind these threats. In so
doing, this will ensure that subtle and complex threats are
uncovered as well as emerging ones effectively and early
enough. Another important way of avoiding criminal probes is
by nurturing a culture that is full of integrity and high ethics by
establishing accountability standards, controls, and policies
while at the same time working day and night to increase

employee awareness and interrelating closely with employee
awareness. Furthermore, actively participating in the initiatives
postulated by the financial industry should be another policy
that must be undertaken to reduce the level of risk and improve
employee compliance (Gottschalk, 2016).
The Growing Burden of Criminal Probes and Regulatory
Compliance-Implementation
It is universally acknowledged that criminals are more
sophisticated especially when its matters to do with cyber crime
and financial matters, hence so many financial sectors are trying
as much as possible to catch up with the innovative exploitation
of these risks. As of recent, exponential regulatory frameworks,
demands for compliance and transparency coupled with hefty
penalties for non-compliance have pressurized banks both on
the operational and financial level. It is acknowledged that a
number of drivers such as rising transaction volumes coupled
with technological advancements have formulated new ideas for
financial malfeasance. In essence, criminals manipulate the
financial sector of the banks by using innovative algorithms
coupled with complex schemes across sectors and channels. It is
for this reason that banks must be able to establish measures
that can guard against internal employee threats. Apparently,
these financial probes are not only affecting the big banks but
the small financial institutions are also victims of criminal
probes. Small banks are also easy targets for criminal activities,
as most of them are known to lack robust systems that can fend
off growing risks and threats (Tajpour, Ibrahim & Zamani,
2013).
Surging Compliance Costs and Surging Regulatory Scrutiny
Regulators across the universe are believed to have intensifie d
their assessment and scrutiny of heavy fines to banks that end
up disobeying or failing to adopt the appropriate banking

Secrecy Act that goes hand in hand with the Anti-Money
Laundering program. For instance, statistics indicate that
between the year 2007 and 2014, financial institutions in the
banking sector paid approximately $21 billion in cumulative
criminal probes fines in the United States alone. One notable
issue is the fact that banks around the globe are challenged
frequently with emerging AML compliance and regulatory
requirements. For instance, the long awaited mortgage loan
beneficiary ownership rule stipulated by the financial Crimes
Enforcement network that will require financial institutions
including banks to identify and acknowledge the true owner of
company’s properties and mortgage loan bearer behind the
financial transactions that take place in the bank. It is also
important for banks to comprehend and analyze the ongoing
assessment of the U.S Anti-Money laundering framework (Suja
& Raghavan, 2014).
Government criminal probes want financial institutions like
banks to be more responsible when it comes to prevention of
financial crime by reporting any suspicious financial criminal
threat. In dealing with the issues raised in this regulation, Most
banking sectors around the globe have made notable efforts to
enhance their skills and their transaction monitoring systems
that ensure that they acquire greater abilities, knowledge about
their customers coupled with the number, type and the
magnitude of transactions they make. Others have focused on
recruiting individuals that are highly skilled in a matter of risk
compliance and investigations. Another potential area of
concern is the potential shortage of trained compliance experts
that is surpassed by the increasing need and responsibilities of
compliance experts. In fact, for those small-scale banking and
financial sectors, the issue of criminal problems and regulatory
compliance has become a growing issue of concern. One of the
reasons behind this increasing burden revolves around the fact
that their compliance programs are not updated (Jacob &
Antony, 2014).

Challenges Faced when Fighting Criminal Probes
It is universally acknowledged that keeping up, with the ever -
increasing regulations and criminal probes ids becoming one of
the most challenging tasks for banks but the most proven
challenge is non-compliance because it is even more costly.
Some of the fines and costs encountered when a bank fails to
comply with the regulations and acts that govern the financial
integrity of the banking sector are remediation, monetary fines,
and unquantifiable implications of investor dissatisfaction
coupled with the reputational damage to the company image.
Additionally, banks have tried to invest heavily in ensuring that
they meet the regulatory requirements while at the same time
strengthening security. However, such efforts are undervalued
by their constant piecemeal approach to curbing issues of
financial integrity and other financial related crimes (Kr imsky
& Simoncelli, 2013).
Using a pieced approach has consequently resulted in data
duplication, as well as that of technology and efforts which in
turn results in increased costs. Without unified data from a
number of channels and geographies, it is as well harder to
identify suspicious financial activities or to get a unified view
of organization-wide risk. Enhancing the ability to detect,
prevent and report financial crime and at the same time contain
escalating regulatory and compliance costs is the biggest
challenge that financial institutions face (Quigley, 2015).
Steps of Fighting Financial Crime
In reality, there does not exist a single perfect way to curb
financial crime. Financial institutions need to take a number of
steps to acquire more experience in fighting threats and
navigating the complex regulatory fields. Tailoring the
approaches aimed at managing financial crime risks acts as the
first step towards fighting financial crime. Development and

application of effective controls have become knowledgeable
about the potential risks and the areas that they impact most. On
identification, a risk assessment should be carried out based on
the institution’s proneness to risks that could be determined by
the size, channels, customer types as well as nature of products
and services, geographical location. Mapping the acquired risk
information against the existing internal policies and control
procedures, financial institutions could then access their
efficiency in mitigating risks and make changes where they
emerge necessarily. Continuous should as well be conducted to
ensure relevance of findings (Casas-Zamora, 2013).
Addressing silos is a key aspect in fighting financial crime. A
wide spectrum of types of financial crimes exists but often goes
unnoticed because of the fact that the disciplines operate in
silos. Integrating and merging various internal functions aimed
at preventing financial crime could help to manage the growing
sophistication of the crimes. Such integration, however, could
increase the vulnerability to cyber-attacks and alternatively
improving communication and coordination among the teams is
advised. Integration of transaction monitoring in the cyber -
crime and AML disciplines could mark a starting point. Since
the teams tend to overlap in terms of their data requirements,
systems, and processes, they as well tend to face similar
challenges. If the cyber-security team issues a cyber-attack
alert, for example, the AML function is given the chance to
enhance transaction scrutiny and prevent money theft. On the
other hand, the fraud prevention team could take action to
prevent monetization of the stolen customer data while
investigating the perpetrators ta the same time. Collaboration of
departments in such a way enables banks to acquire increased
efficiencies in monitoring transactions and investigation
tracking. Security gaps could as well be filled, reduce
redundancies enable streamline processes and innovate models
are capable of identifying and preventing highly sophisticated
crimes (Girod, 2014).

Data challenges are the main contribution towards ineffective
attempt to fight financial crimes. The ability to integrate efforts
lies deep in the ability of banks to acquire high-quality,
consistent and reliable information from across the
organization. To overcome data challenges, banks may need to
adjust their internal policies regarding data entries and
management. Policies should provide for standardization of
customer records, transactions as well as crimes and
unstructured data from across the bank. Standardization works a
great deal towards improving the quality, accuracy and
usefulness of available data in achieving financial crime control
(Shahin & El-Achkar, 2016).
Benefits of Addressing Criminal Compliance and Dealing with
Criminal Probes
Analysis of data as well contains an important aspect in
detecting and preventing increasing threats. Acquisition of data
should not be the only data process towards decision-making.
Analyzing data before declaring its use is important to
understand risks posed by customers, transactions, and other
parties and realize complex threats that affect multiple business
lines. Transactions that may appear genuine in one channel may
turn out to be malicious when viewed from another point across
the bank that therefore calls for a keen analysis of available
data to help to identify possible threats and malicious
transactions. Keen analysis may as well enable the bank to point
out inside threats and breaches that could have aided financial
crimes (Arvind, Gray & Wilson, 2016).
Addressing culture and people challenges in most times lead
banks out of financial crime. Senior management could set a
tone that drives the organization towards or against financial
crimes. Banks need to set standards of transparency and
accountability, establish policy controls to enhance compliance.
Zero tolerance towards potential threats should be shown to

help set a culture of conformity. Maximum awareness should be
created on emerging potential threats by updating employees on
emerging risks and sensitize them on various loopholes that can
be used by criminals to attack (Yeoh, 2016).
Banks need to establish collaborations with industry-wide
initiatives to achieve a consolidated approach towards curbing
financial crime. Collaboration helps to avoid duplicating efforts
across the industry, facilitate creation best practices and
standards and enhance innovation. Collaborating with the
government could help financial institutions to take financial
crime control to a more efficient level. In the UK for instance,
Joint Money Laundering Intelligence Taskforce was set up to
study scales, methods that were employed in money theft,
suggest correction measures, and to enable effective
intelligence sharing across parties (Shelley & Picarelli, 2002).
References
1. Shelley, L. I., & Picarelli, J. T. (2002). Methods not motives:
Implications of the convergence of international
organized crime and terrorism. Police Practice and Research,
3(4),
305-318.
2. Yeoh, P. (2016). Corporate governance failures and the road
to crime. Journal of Financial Crime, 23(1), 216-230.
3. Arvind, T. T., Gray, J., & Wilson, S. (2016). 11. From the
mid nineteenth-century bank failures in the UK to the twenty-
first-century Financial Policy Committee: changing views of
responsibility for systemic stability. Complexity and Crisis in
the Financial System: Critical Perspectives on the Evolution of
American and British Banking, 261.
4. Shahin, W., & El-Achkar, E. (2016). Banking and Monetary
Policies in a Changing Financial Environment: A Regulatory
Approach. Routledge.

5. Sudjianto, A., Nair, S., Yuan, M., Zhang, A., Kern, D., &
Cela-Díaz, F. (2012). Statistical methods for fighting financial
crimes. Technometrics.
6. Harrison, K., & Ryder, N. (2016). The law relating to
financial crime in the United Kingdom. Routledge.
7. Gottschalk, P. (2016). Investigation and prevention of
financial crime: Knowledge management, intelligence strategy
and executive leadership. CRC Press.
8. Tajpour, A., Ibrahim, S., & Zamani, M. (2013). Identity Theft
Methods and Fraud Types. IJIPM: International Journal of
Information Processing and Management.
9. Suja, P., & Raghavan, N. (2014). cybercrime in banking
sector. International Journal of Research in Social Sciences,
4(1), 189.
10. Jacob, N. A., & Antony, G. V. (2014). INSIDER
INFORMATION SECURITY THREATS IN INDIAN
BANKING CONTEXT. International Journal of Information
Technology & Computer Sciences Perspectives, 3(4), 1220.
11. Casas-Zamora, K. (Ed.). (2013). Dangerous Liaisons:
Organized Crime and Political Finance in Latin America
and Beyond. Brookings Institution Press.
12. Quigley, R. (2015). Impulse towards Individual Criminal
Punishment after the Financial Crisis, The. Va. J. Soc. Pol'y &
L., 22, 103.
13. Girod, R. J. (2014). Advanced Criminal Investigations and
Intelligence Operations: Tradecraft Methods, Practices, Tactics,
and Techniques. CRC Press.
14. Krimsky, S., & Simoncelli, T. (2013). Genetic justice: DNA
data banks, criminal investigations, and civil liberties.
Columbia University Press.

15. Eggenberger, K., & Emmenegger, P. (2015). Economic
Vulnerability and Political Responses to
International Pressure: Liechtenstein, Switzerland, and the
Struggle for Banking Secrecy. Swiss Political Science Review,
21(4), 491-507.
12
JP MOrgan/Issues in all Papers.docx
Literautre Review:
you number each of your articles 1-20?
Does each of your references exist at least twice (one in the
body of your lit review and once in reference page?
Do you have 15 to 20 articles in your literature Review?
Yes
N
Outline and Analysis:
Green or red underline means grammatical or spelling error.
Does your paper is free of green and red underline?
Proposal:
Did you write the benefits for the company based on the 3
recommendations, question # 5?
Did you write how does your recommendation help the company
in terms of Dollar, Percentage, Efficiency and etc.…
JP MOrgan/Reasons why JP Morgan is facing huge criminal
probes (1).doc
Reasons why JP Morgan is facing huge criminal probes
Submitted to

Dr. Asila Sayedi
Submitted By
SAKETH RAM SAMINENI
516180
California University of Management and Science
Reasons why JP Morgan is facing huge criminal probes
1. Research Topic
The research topic of this report revolves around the exploring
some of the reasons why JP Morgan may be experiencing one of
the biggest bank legal fines ever. While working as an intern at
JP Morgan, the Wall Street Journal indicated that it was
offering approximately $ 3 billion to deal with unspecified
criminal and legal charges probes. Additionally, the numbers
are still in flux but however the bank fines it will pay, I will
still go down in history as one of the biggest criminal probes in
a banking and financial sector. In order for JP Morgan to move
forward in terms of financial performance, it needs to curb on
the numerous criminal probes it is facing.
2. Overall Objectives
This research report revolves around exploring some of the
reasons why the largest bank in terms of Assets and finance in
America is experiencing so many criminal probes. In this case,
to solve this issue, the research project will deal with the
following objectives

· To investigate the sale of mortgage-backed securities in the
course of the run-up to the financial crisis: Besides, a civil
criminal investigation, this kind of criminal investigation is a
very rare one and can hurt JP Morgan negatively.
· Investigation of new business deals won by JP Morgan: Anti -
bribery investigators were of the opinion that JP Morgan had
obtained the services of children of powerful Chinese
backgrounds to assist it in winning business deals. Such
allegations can hurt the financial performance of JP Morgan
negatively.
· Explore the issue of unclaimed property associated with JP
Morgan in several American states: In this case, if the bank is
found guilty of aiding and abetting breach of fiduciary duty,
then its image and financial performance will be hurt.
3. Company Overview
JP Morgan is universally acknowledged as a financial holding
company that was incorporated in the year 1968. Additionally,
the banking finance company is involved with financial
transaction processing, investment banking, financial services,
and asset management. Its Chase activities are divided into four
business segments and other corporate segments. In this case,
the segments of the company are Corporate & Investment bank,
Consumer, and Community banking sector, Asset Management,
and Commercial banking. It is through this numerous company
segments that the JP Morgan has gone ahead to establish a name
as one of the largest asset management company in the U.S.
4. Recommendations
· Establish clear-cut measures of buying and selling of

mortgage-backed securities: A good financial set up ensures
that the banking financial assets are managed well in the long-
run hence making criminal probes revolving around lending of
loans a rare case.
· Establish an ethics and anti-corruption committee that will see
to it that any transactions done in the name of JP Morgan are
based on the regulations stipulated under the national anti -
corruption committee.
· Establish measures that will keep track of all the company
properties: In so doing, the company will avoid legal claims
associated with unclaimed properties
5. Three Step-by-step implementation plans
· Establishing of clear-cut measures of buying and selling of
mortgage-backed securities
· Ran stress tests in all the markets that are served by JP
Morgan
· Focus on the market disparities and fund flows
· Assess the consequences of the Brexit vote for its operation as
well as its customers
· Establishing an ethics and anti-corruption committee
· Train the top management and the individuals responsible for
· Promoting transparency and liquidity in a manner that

· Maintaining a concrete and robust control environment while
conducting business deals associated with JP Morgan
· Establish measures that will keep track of the company assets
· Manage extensive assets positions with integrity and care
· Establish an external control environment that will ensure that
each and every company property is in accordance with
· Establishing internal property and asset monitori ng policies in
an effort to further the ability of JP Morgan in identifying
review.
6. Projections and Benefits of the Company Based on the
Recommendations
The recommendations stipulated in this research recognize the
significance of maintaining the efficiency and the integrity of
the U.S government securities, agency mortgage-backed
securities, and agency debt. In other words, the
recommendations imply that all the market participants and the
public will benefit from a market place that is able to practice
high level of integrity and transparency when conducting its
business operations. In this case, this recommendations will
ensure that JP Morgan avoids adding more criminal probes to
the already existing numerous legal claims since the
recommendations will act as a guideline for its participation

and operation in the market that fosters great accountability and
in the process encourages integrity in its operations.
1
750words- W14092631/DTRP TRI 3 2016 - Research Proposal
Template (1).docx
2016 DTRP: Research Proposal Template
General Information
· The assessment of the Research Proposal is worth 20% of your
overall course mark.
· The research proposal is split into two parts:
Part 1a - Oral Research Proposal Presented by all
group members 10%
Part 1b – Written Research Proposal Submitted by
individual student 10%
· Each group is required to present an Oral Research Proposal in
week 5 of the DTRP course.
· Each student is also required to submit their own Written
research Proposal in week 6 of the course.
· In order to complete the requirements of the Research
Proposal you will need to address the section headings listed in

the pages to follow.
Oral Research Proposal
· Each group must present data with the help of presentation
software. (e.g. Powerpoint, Prezi)
· Each section must have its own heading.(e.g. Introduction,
Rationale)
· Each group member is responsible for presenting a part of the
proposal, including his/her own research question and
methodology. The other sections of the proposal can be divided
among the group members.
Written Research Proposal
· To be typed using a regular font such as: Times New Roman,
Arial, Calibri, Verdana.
· Each section must have its own heading. (e.g. Introduction,
Rationale)
· Sub-headings and paragraphs are recommended.
· The main text should be in size 11 or 12, with appropriate
increases for headings and sub-headings.
You will be required to submit an electronic copy of your
Written Research Proposal only via TurnItIn.
Follow the template guidelines below in order to complete both
your Oral Research Proposal and Written Research Proposal:

(As always, ask your teacher to clarify any areas of confusion).
A. Cover page
Must include:
· Title
· Student Name
· Student Number
· Teacher Name
· Identification of all group members
Can also include:
· Picture
· Graphics
· Colour
Note: Any visual content that was created by another person
must be correctly referenced.
B. Introduction
Explain clearly what the topic/issue is.
· Introduce – briefly - the topic on a broad scale.
· Demonstrate a strong understanding of your issue.
· Simplify the issue: pretend that you are introducing it to an
audience that has not heard of it before.
· Can show multimedia to help you explain your research. (e.g.
video clip, graphs, data)
· Use 2-3 citations to support your introduction, with correct
Harvard Referencing.
· Make sure you use your own words, to show your knowledge
and understanding of the topic and its significance.

C. Rationale
Why have you and your group selected this issue or topic?
· What is the significance of this topic? Why is this topic
important for both your group and society? How does it affect
society as a whole?
· Why is this topic more important or relevant or exciting than
other choices?
· Provide a common group aim that unites all members’ research
into one shared purpose.
· Consider using multimedia to convince your audience that this
is an important topic of research.
· Use 1-2 citations to support your introduction, with correct
Harvard Referencing.
TIP: Create a list of 3 or more reasons why the audience should
be interested in your research.
D. Prior Knowledge
What do you already understand about this topic?
· Discuss what the group knows, not just what you know.
· Discuss any experiences your group members have had with

this issue.
· Again, you can use multimedia to help communicate to the
audience.
TIP: You are not expected to know everything about the topic
yet. That is the point of the research!
So relax! Be honest with your answers and practise thoroughly
before the presentation.
E. Research Design
1. RESEARCH QUESTION
Identify and explain your research question.
· You are now moving from the general topic to the specific
research question you propose to answer.
· Make it clear to the audience what question you are attempting
to research.
· Do not assume that the audience understands what your
question means. EXPLAIN IT.
· Spend a little time discussing why this question is the one you
decided to choose.
2. METHODOLOGY

Explain the methodology you will use to answer your research
question.
· Your presentation should demonstrate a strong knowledge of
the theory that we covered in class (e.g. Primary vs. Secondary;
Qualitative vs. Quantitative)
· When describing your primary research try to be specific.
Which categories of DTRP students will you conduct your
research on? How many people will be part of the research? Is it
aimed strictly at males? females? both? Any nationalities or
cultural backgrounds in particular? Science students? Business
students? etc
· Discuss (and possibly show in your presentation) some
examples of secondary sources you have collected which will be
valuable to your research.
· Provide some examples of questions you may ask participants
during your primary research.
F. Proposed Research Outcomes
What do you hope to achieve by conducting this research?
· What do you hope your research will teach you and others?
What do you hope to learn about this issue?
· What skills do you hope to gain or improve by doing this
research?
· What value or benefit do you hope your research will have for
society as a whole?
TIP: The question asks what you HOPE to produce. Until you
do the research it will not be clear what your outcome will be

exactly.
· So again, relax! Have a conversation with your audience.
G. Literature Review
Which sources have you already read or viewed up until this
point?
· You will need to produce one literature review for each
research question your group has decide on.
· You should not display the literature review document during
your presentation, but you must discuss(in the research design
section) one resource that you intend to use for the research of
your individual question.
TIP: Use the following table to help you complete the literature
review in your written proposal
RESOURCE-Outline of literature review
Topic:
Title:
Type of Resource:
How did you find the resource?
Harvard reference:
Relevant to Research Question(s):
Key points of relevance to this Research Question (in note –
point form):
·
·
·
·

·
·
H. Reference List
Include a list of references for any resources that you have used
within your research proposal
· As in the previous Foundation Studies courses you have
undertaken you must follow the DTRP Referencing Guide.
(Appendix 3 of your Student Resource Manual)
· You are expected to use and cite at least 3 references within
your proposal. (e.g. during your
introduction and rationale).
Please note: There is no overall word limit for the Written
Research proposal
Rather than focus on how many words you “HAVE” to write,
your focus will be on making sure that you have addressed the
requirements of each section.
You will be required to seek feedback from your teacher
wherever possible, to make sure that there is enough detail in
your responses.

2
750words- W14092631/task request for you.docx
That request for you. E that option. The question is the Virtual
Reality apply to healthcare in the furture How
The small black points under the title,
Is required.
And then the inside of the group are replaced by my personal.
Topic is reality Virtual.
750 words.
And then this information, have to find their own.
Then, the video address finally had to send to me, this is the
video of the website, I want to use presentation. This should be
written in essay.
750words- W14092631/task.jpg

Jp m organ516180 saketh ram samineni - analysis- investigati

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Jp m organ516180 saketh ram samineni - analysis- investigati

Similar to Jp m organ516180 saketh ram samineni - analysis- investigati (20)

More from sherni1

More from sherni1 (20)

Recently uploaded

Recently uploaded (20)

Jp m organ516180 saketh ram samineni - analysis- investigati