Did You Know That Jerome Kerviel Is The Poorest Man In The World?

By Soko Directory Team / Published September 30, 2021 | 2:30 pm




KEY POINTS

In a single year, Jerome Kerviel amassed more wealth than entire countries and regions will ever see. But at the same time, he also has debt that will never be paid off. So, on paper, he is the poorest person in the world, but there are still billions who can’t even afford basic needs.




Jerome Kerviel is best known as the trader who lost the largest amount of money in the world. He was convicted and imprisoned in 2008 for breach of trust, forgery, and unauthorized use of computers. Currently, he has more debt than anyone else in the world.

He may not have thoroughly thought that a single high-risk business practice would see his wealth rolling down the hill. His appetite for amassing a vast security position would later leave him counting on severe losses and becoming the poorest person ever.

In a single year, Jerome Kerviel amassed more wealth than entire countries and regions will ever see. But at the same time, he also has debt that will never be paid off. So, on paper, he is the poorest person in the world, but there are still billions who can’t even afford basic needs.

He was born on 11, 1977 in Pont-l’Abbé, Brittany, France to Marie-Josée and Charles. He was raised alongside an older brother named Olivier.

Regarding his educational background, Jerome Kerviel graduated from the University of Nantes with a bachelor’s degree in finance. Jerome Kerviel later graduated from Lumière University Lyon 2 in 2000 with a Master of Finance specializing in organization and control of financial markets.

What happened to Jerome Kerviel is highly surprising and daunting at the same time. Many people cannot stop imagining how a billionaire could have lost their wealth overnight. While we are at that, most people maintain he is now suffering the pain he brought to himself.

Experts have likened his fatal risk with about 1.5 times the market capitalization of a global bank, or five times the economic output of Cambodia. So, it could be less surprising if no one knew about the risk grounds that Jerome was treading.

Jerome worked with a leading banking firm as a junior-level derivatives trader, earning about US$66,000 every year. His hard work at Société Générale (SocGen) saw him accumulate a whopping US$73 billion stock index futures position in the wake of 2008.

His decisions, later on, cost SocGen a tune of US$7.2 billion, roughly six times more of what Nick Leeson lost at Barings. Derivatives are lucrative investments drawing value from real assets, including oil price, market index, and stock.

Investing in the Eurostoxx pan-European stock index futures contracts (30 billion Euros), Germany’s DAX futures (18 billion euros), and London’s FTSE futures (2 billion euros) was never a good idea.

He made this move hoping that the markets would shoot in the following months, and he would have profited through arbitrage.

His blind hope sunk amid market falls that were experienced after that. It later emerged that Jerome suffered the loss deliberately in an attempt to mask his illegal dealings at the company. According to a report released by SocGen, Jerome had been involved in a series of trade frauds.

The report uncovered no other charge against him. These revelations indicated that he had indeed undermined the company’s trading policies. As a result, the company fired him soon after.

A few years back, Jerome handed himself to the authorities and started serving a jail sentence for his breach of trust at Societe Generale. The trader has more debt than the most unfortunate person you have ever met.

Little did Jerome know that his involvement in unauthorized trades would cost his lifelong savings and throw him into jail after that.





About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (273)
  • July 2021 (277)
  • August 2021 (233)
  • September 2021 (271)
  • October 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (250)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (235)
  • June 2018 (177)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (186)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950