Business Law and the Legal Environment 7th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 39

The Senate recently released a report on wrongdoing at JPMorgan Chase Co. It found that bank executives lied to investors and the public. Also, traders, with the knowledge of top management, changed risk limits to facilitate more trading and then violated even these higher limits. Executives revalued the bank's investment portfolio to reduce apparent losses. The bank's internal investigation failed to find this wrongdoing. Into what ethics traps did these JPMorgan employees fall? What options did the executives and traders have for dealing with this wrongdoing?