Answer to case Study Example | Topics and Well Written Essays - 750 words

Answer to - Case depicted object ExampleThe Congress authorities wanted to impose regulatory measures on the derivative trading deals in order to avoid such bolshyes in future. Unlike trading in New York line of credit line Exchange, most of the derivative transactions took place between toffee-nosed parties in U.S. The governance wanted to occupy such trading through clearinghouses, where public intermediaries would inspect the dealings. According to the government, it was also necessary to implement the Dodd pawl Act that would oppose the deposits from undergoing excessive risks in big dealings. At this juncture the commercial edges claimed for less government intervention. Jamie Dimon the chief of the company commented that, three high ranking executives left the company and this was the reason for the spill. Stakeholder Theory preliminary The JPMorgan loss affected both the market and the non market stakeholders. Market Stakeholders Customers The customers are the de positors who keep their assets in the bank. The loss of JPMorgan would make the customers feel unsafe to deposit their wealth in the bank. They would fear that the bank might move over in such adverse crisis and thereby might withdraw their deposits. Employees The employees of the bank would lose confidence from the judicature and might decide to leave their jobs and join elsewhere. They would do this in fear of losing their jobs in future. Suppliers The suppliers would also unit of ammunition out to be non supportive to the bank. They would cease the major derivative dealings in fear that in such crisis the bank might not be able to pay back the returns to them. Non-Market Stakeholders Government The government would need to fracture an implicit bail out to finance the loss making projects of the firm. The state would offer an implicit bail out only if the bank accepts to operate under its regulations. Communities The communities would expect the bank to reclaim its loss. This is because JPMorgan initiates certain social responsible schemes for the communities. They would encourage the employees, suppliers and customers not to loose confidence from the bank. Business Supporting Groups The business support groups would also support the views of the company chief. They would claim for less state intervention in the matters of the private banking. They would claim this because they are in favour of banking led business expansions. The Stakeholders Map High Stakeholders Salience Stakeholders Sailence pocket-size Against Position of the issue For (Source Authors Creation) As shown in the above map, the communities and business support group would take this loss to be a normal incident. They would comment that the loss has actually taken place because three historic officials left JPMorgan bank at this juncture. Ina Drew was one of these three officials, who used to look into the risk in the firms derivative deals. On the other hand customers, government, su ppliers and the employees would move against the views of the issue. They would lose confidence from the bank in due course of this loss. However, since U.S. is a republican country the salience or indicator of the customers would be utmost influence the decisions of the banks. The government and the communities would have the minimum powers. Sample Stake holder Map Recommendations The power of the customers and suppliers are high in matters of private commercial bank. The scale of operations of a commercial bank depends on the trust and