Legal Frameworks & Agreements: JP Morgan Chase & Co (HI5015)

This report provides an organisational analysis of JP Morgan Chase & Co, a multinational financial holding company. It examines the legislative frameworks affecting the company, including tax laws, political expenditures, and political action committees. The report also explores various agreements, such as the Trans-Pacific Partnership, global custody agreements, over-the-counter contracts, and loan agreements, and their impact on the firm's products and services. Furthermore, the analysis delves into lobbying activities, tax rates, and the influence of treaties and conventions on the company's operations. The report highlights the importance of legal compliance, internal policies, and the role of agreements in shaping the company's financial services and its interactions with clients and regulatory bodies. The study concludes by emphasizing the significance of understanding the legal landscape for the success and sustainability of JP Morgan Chase & Co in the global financial market.

Running head: JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
JP Morgan Chase & Co – Organisational Analysis
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1JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
Executive summary:
This report deals with the analysis of the financial banking firm of JP Morgan Chase
& Co, along with the legal frameworks and the agreements or the treaties that affect the
product and the services that the firm gives to the customers. Being a firm in the financial
sector, and having its global headquarters in New York, the company is subjected to a lot of
legal frameworks. The legal frameworks that the company has to comply with, includes the
corporate payments, the taxes and the tax rates as well as the committees which are subjected
to the political actions. However in accordance with this, there are a lot of treaties and
agreements that affect the product and services of the firm.

2JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
Table of Contents
Introduction:...................................................................................................................3
Legislative Frameworks affecting the company............................................................3
Political expenditures and Corporate Payments.........................................................4
Political Action Committees......................................................................................4
Agreements................................................................................................................5
Lobbying....................................................................................................................5
Tax rates.....................................................................................................................5
Treaties or conventions affecting the product and services of JP Morgan Chase & Co 6
Trans-Pacific-Partnership (TPP)................................................................................6
Global custody Agreement.........................................................................................7
Over the Counter contracts.........................................................................................7
Loan agreement..........................................................................................................8
Privacy policies and contracts....................................................................................8
Conclusion......................................................................................................................9
References:...................................................................................................................10

3JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
Introduction:
The company operates in the banking and financial sector and it is a multinational
financial holding company of the Australia. The financial firm has made its position strong in
the market of the financial products and services. The corporate headquarters of the financial
firm is situated in Manhattan of New York City.
At present, there are more than 250,000 employees working in this sector and the
organisation provides it service worldwide (JPmorgan.com , 2019). The service that this
sector provides is to all the people over the world, to all corporate or institutional clients (J.P.
Morgan, 2019). In accordance with this, the organisation provides different kinds of services
such as the corporate structure and the equity capital markets. It also takes care of the
treasury and the security services. The bank also connects the clients globally, on the basis of
the investment management and creates advantage for the institutions.
Legislative Frameworks affecting the company
The legal frameworks that affect the company include the tax laws that the company
is committed to comply with. The business of this organisation makes sure that the
employees are subjected to policies, laws and the procedures. According to the statement of
Lall (2012), the legal frameworks and the policies that the business is subjected to, are
extensive at all the levels such as the international, state, the federal as well as the local
levels. These laws and the policies are responsible to engage the customers, the employees as
well as the community people and eventually takes care of the long term interest of the
financial organisation. JP Morgan Chase & Co has a lot of internal policies and laws that
ensure the company’s need towards the legal procedures (Chuah, 2009).

4JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
Political expenditures and Corporate Payments
As discussed by Beets and Beets (2019), the policies and the laws of the financial firm
prohibit the expenditure of the corporate capital to the customers, the political parties and the
committees as well as the political committees that cone under the section 527 of the Internal
Revenue Code (IRC). Thus has been done in order to encourage the election of the
candidates. All the political expenses of JP Morgan Chase and Co are not performed by the
corporate funds. Even the firm has to comply with this policies that does not make use of
corporate capital for the electioneering communications. According to its legal framework,
the firm has imposed a restriction on the associations of the trade organisations for any kind
of election activities (Beets and Beets, 2019). In accordance with this, the firm does have the
authority to contribute to the corporate funds that would provide the support to the local
ballot system and this affects the firm to a great extent. The operations and the product
services of the organisation gets affected as well.
Political Action Committees
The employees of the JP Morgan Chase & Co have the right to contribute voluntarily
to the Political Action Committees of the JP Morgan Chase & Co. these support candidates
and the fund contributions of these employees are directed by the Government Relations and
Public Policy (GRPP) (Dimon, 2014). The JP Morgan Chase & Co has to comply with the
GRPP that prioritises the candidates that represent the communities. Also according to
Dimon (2014), they have effectively showed support for the agreements and the laws that are
of utmost importance to the financial firm. The contributions to the Political Action
Committees are made available to the public , and are reported by the Federal Election
Commission. These are also answerable to the local election authorities along with the law
that is applicable to them (Dimon, 2014).

5JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
Agreements
The decisions of the contributions of the political committees along with the payments
in the corporate sector are made entirely in order to encourage and promote the interests of
the firm. In this scenario, the organisation has to entirely comply with the laws and the
policies. As per the discussion of Reynolds (2004), the personal or the political views of the
senior management is not even regarded and taken into consideration, under the legal
frameworks. The Government Relations and Public Policy works in accordance with the
Legal Department of the JP Morgan Chase & Co, just to make sure that all the contributions
that are made to the political action committees are made in full accordance with the policies
and the firm agreements that are applicable in the particular scenario (Reynolds, 2004)
Lobbying
In accordance with this, the GRPP is the representative of the policies and the legal
actions of the firms (Murray, 2017). It represents the company to the government that
presents the legislative matters of the organisation. The Policy Engagement Report exposes
all the lobbying expenditures of the firm and also discloses the local and the state cost so the
GRPP. Moreover, the company JP Morgan & Co belongs to a lot number of trade
associations. Murray (2017) also discusses that these trade concerns sponsor the most
important public policy issues that are important to the firm as well as the community that the
company aims to serve. The company is a member of these associations and it has to submit
to.
Tax rates
According to the new tax codes, the business tax rate make the company of the United
States to be more competitive in the world. The lower tax rates added almost $3.7 billion to
the net income (Palan, Murphy and Chavangneux, 2013). The opportunity of lowering of the
tax rates have helped the company to increase their investments in the technology as well as

6JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
in the new branches. Also the Trans-Pacific-Partnership (TPP) has been advantageous for the
company of JP Morgan since it has started to expand its business internationally, according to
the managing director of the company. Also Palan, Murphy and Chavangneux (2013)
discusses that due to the adjustment of the reduction of the tax rates and the Jobs Act, the JP
Morgan Chase & Co have provided the best of the services in the last nine years. The revenue
and the net income of the sector grew along with significant improvement in the investment
of the products and the technology. The banking sector grew loans by an increase of almost 7
percent and the deposits in total increased by 3 percent (Palan, Murphy and Chavangneux,
2013). Thus eventually the market share across the financial sector increased and while
maintaining the discipline of the credit balance, and the balance sheet. Thus in total, there had
been an extension in the credit capital as well as the capital raised up to $2.5 trillion for
businesses, institutional clients and U.S. customers (Palan, Murphy and Chavangneux, 2013).
Treaties or conventions affecting the product and services of JP Morgan
Chase & Co
Trans-Pacific-Partnership (TPP)
According to this partnership or agreement, the U.S has signed a treaty with the
countries of Europe and Asia, that involves the inclusion of the new markets and the
economy of the countries such as Japan and Vietnam (Cho, 2015). The agreement is basically
a reduction of the tax over the exports of the American products, and on the items that are
produced by the American manufacturers. Analysing this fact, Cho (2015) also discusses that
this had been a very positive opportunity for the corporate groups and the organisations to get
involved in the international trade. The engagement of their banking partners in this scenario
has been effective, in order to gain the advantages that had been available to the corporate
institutions. This agreement had been advantageous for the JP Morgan Chase & Co, because

7JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
the free trade that would be possible between the other economies of the TPP countries would
also reduce the amount of finance and trade capital that was required from the banks and the
financial sectors to support the customers. According to Bramble (2015), the managing
director of JP Morgan Chase & Co thus saw the growth of the inclusion of the banking
partners along with the opportunities in this trade agreements. In accordance with this,
Bramble (2015) also states that the “One Belt, One Road” plan would link the countries of
Asia and Europe but would also increase in the economic output of the nations.
Global custody Agreement
According to this convention, the company of JP Morgan Chase & Co is responsible
for providing the custodial settlement, and also the services that are associated with it, such as
the financial services to the customers. As per the discussion of Akhtaruzzaman, Shamsuddin
and Easton (2014), the performance that the banking organisation shows of the duties, would
be expressed in the agreement. The customers know that the company would not provide any
sort of legal advice regarding the tax. Thus the company, in providing the products and the
services such as the financial services to the customers would not be liable to any kind of
losses. Moreover the terms and the conditions of the agreement are just applicable for the
services that JP Morgan Chase & Co provides.
Over the Counter contracts
JP Morgan Chase & Co indulges in one of the risky agreement with the customers
which ensures that the investors are dependent upon the financial ability of the company to
meet its obligations. Akhtaruzzaman, Shamsuddin and Easton (2014) also discusses that these
obligations fall under each of the over the counter derivative or contract and is unsecured.
The Over the Counter contract with the JP Morgan Chase & Co bank, as a counterparty does
not represent the savings account or a deposit account. This includes that the claim of the
investors against the bank would not be protected by any sort of government entity.

8JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
Loan agreement.
This treaty has been made between the SKM Media Group, Inc and the JP Morgan
Chase & Co (Bramer and Gischer, 2013). The SKM Media Group, Inc acts as the borrower
and the later the lender. The SKM Media Group, borrows commercial loans from the lender
for any financial accommodation. The JP Morgan Chase & Co understands and agrees to the
demands of the borrower such as the granting of the loan, as well as the extension of the loan.
As per the discussion of Bramer and Gischer (2013), the lender here relies upon the
representation of the borrower, and also upon the terms and the conditions that are laid upon
the agreement. This has an effect upon the products and services of the bank, because the
agreement makes sure in detail what amount of money is being loaned and when the loan is
been repaid back to the bank. As discussed by O’Brien and Dixon (2012), the contract of
Lending Act created a problem for the company, and it has to face the lawsuits that were field
against the firm, by the credit card holders. The complaint was that the bank had violated the
Truth Lending act. The company had to increase the monthly payments from 2 percent to 5
percent, which had affected its own products and services to some extent, in order to help the
customers. O’Brien and Dixon (2012) also states that the customers had to be ensured and
promised that the bank would provide them with the fixed interest rates. The claim that had
been made against the firm, had to be settled by the firm itself by paying almost 100 million
dollars to the United States District court.
Privacy policies and contracts
According to this policy, the company effectively respects the privacy of every person
and tries to maintain the trust of each and every customer who use the products and the
services of the firm (Bryan and Rafferty, 2018). They try to keep the personal information of
the clients and the customers safe and secure. In this manner, they are committed to the
Privacy policies of the Australian nation as well as the Privacy Act of 1988. The personal

9JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
information that the bank gains from the clients, if not secured or kept private, it will affect a
lot to the product and services of the firm and the customers who rely upon the company,
would take their hands back from the services that they receive (Bryan and Rafferty, 2018).
Conclusion
Thus from the above report it can be concluded that the JP Morgan Chase & Co, is a
leading bank in the financial sector of Australia. The company is subjected to a lot of policies
and legislative frameworks, such as the political action committees, or the changes in the tax
rates and the corporate payments. However irrespective of the legal policies that the
organisation has to comply with, its products and services are affected by other treaties and
agreements such as the loan and the credit ones. The company strives to maintain its
customer relationship through the privacy policies and this makes the firm successful.

10JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
References:
Akhtaruzzaman, M., Shamsuddin, A. and Easton, S., 2014. Dynamic correlation analysis of
spill-over effects of interest rate risk and return on Australian and US financial firms. Journal
of International Financial Markets, Institutions and Money, 31, pp.378-396.
Beets, S.D. and Beets, M.G., 2019. An absence of transparency: The charitable and political
contributions of US Corporations. Journal of Business Ethics, 155(4), pp.1101-1113.
Bramble, T., 2015. Australia: A Mid-level Imperialist in the Asia-Pacific. Historical
Materialism, 23(3), pp.65-100.
Brämer, P. and Gischer, H., 2013. An assessment methodology for domestic systemically
important banks in Australia. Australian Economic Review, 46(2), pp.140-159.
Bryan, D. and Rafferty, M., 2018. Risking together: How finance is dominating everyday life
in Australia. Sydney University Press.
Cho, J., 2015. Analysis of Issues of Vietnam's Joining the TPP. Journal of International
Logistics and Trade, 13(2), p.33.
Chuah, J., 2009. Law of international trade: cross-border commercial transactions. Sweet &
Maxwell.
Dimon, J., 2014. JPMorgan Chase & Co. Annual Report, Disponível em http://files.
shareholder. com/downloads/ONE/15660259x0x820077/8af78e45-1d81-4363-931c-
439d04312ebc/JPMC-AR2014-LetterToShareholders. pdf, Acesso em, 30.

11JP MORGAN CHASE & CO – ORGANISATIONAL ANALYSIS
J.P. Morgan (2019). About J.P. Morgan Australia. [online] J.P. Morgan. Available at:
https://www.jpmorgan.com/cm/ContentServer?pagename=Chase/Href&urlname=jpmorgan/
au/about [Accessed 19 Dec. 2019].
Jpmorgan.com (2019). J.P. Morgan Australia & New Zealand | About us. [online]
Jpmorgan.com. Available at: https://www.jpmorgan.com/AU/en/about-us [Accessed 19 Dec.
2019].
Lall, R., 2012. From failure to failure: The politics of international banking
regulation. Review of International Political Economy, 19(4), pp.609-638.
Murray, G., 2017. Capitalist networks and social power in Australia and New Zealand.
Routledge.
O'Brien, J. and Dixon, O., 2012. The common link in failures and scandals at the world's
leading banks. Seattle UL Rev., 36, p.941.
Palan, R., Murphy, R. and Chavagneux, C., 2013. Tax havens: How globalization really
works. Cornell University Press.
Reynolds, V.K., 2004. The Citigroup and JP Morgan Chase Enron Settlements: The Impact
on the Financial Industry. NC Banking Inst., 8, p.247.