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

Answer to - Case Study ExampleThe Congress government wanted to impose regulatory measures on the differential coefficient trading deals in order to avoid such(prenominal) passing gamees in future. Unlike trading in New York Stock Exchange, most of the derivative transactions took place between private parties in U.S. The government wanted to make such trading through clearinghouses, where public intermediaries would inspect the dealings. According to the government, it was excessively necessary to implement the Dodd Frank Act that would oppose the wedges from undergoing excessive risks in big dealings. At this juncture the commercial banks claimed for less government intervention. Jamie Dimon the chief of the phoner commented that, three noble ranking executives left the company and this was the reason for the loss. Stakeholder Theory Approach The JPMorgan loss affected both the market and the non market stakeholders. Market Stakeholders Customers The customers are the deposi tors 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 upkeep that the bank might collapse in such adverse crisis and thereby might withdraw their deposits. Employees The employees of the bank would lose confidence from the organization 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 turn 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 offer an implicit bail out to finance the loss making projects of the firm. The maintain would offer an implicit bail out only if the bank accepts to operate under its regulations. Communities The communities would expect the bank to recover its loss. This is because JPMorg an initiates certain favorable 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 Low Against Position of the riposte 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 interpreted place because three important 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, suppliers and th e 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 strikingness or power 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