Jerome Kerviel is the poorest individual in the world right now considering he owes SocGen more than $6.3 billion.
Jerome Kerviel is a man who’s famous for being a wealthy banker, but now he’s famous for being so poor.
Jerome Kerviel is a former trader from Societe Generale. In 2008, he was charged with using a computer program to generate a series of unauthorized trades. He was found guilty of forgery and breach of trust and sentenced to five years in prison. That sentence was later reduced to three years on appeal.
In 2010, the appeals court cut his sentence yet again to one year, considering his youth and clean record as mitigating factors as well as the fact that it is uncertain how much damage he actually caused. Jerome Kerviel had gambled with €50 billion worth of Societe Generale shares and lost most of it in just a few hours. It took over 4 years for the bank to pay back its investors
Being poor is not always about being broke. Some people may have all the money they need, but misfortune may still be their constant companion. What are these unlucky ones to do?
Jerome Kerviel 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. 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.
Jerome Kerviel is a French ex-trader was born on November 18, 1975, in the city of Rouen in northern France. In 2008, he became one of the most notorious figures in banking history. This is because he engaged in unauthorized and risky trades and lost €4 billion ($5.7 billion) at his employer, Société Générale. Jerome worked with Société Générale as a junior-level derivatives trader, earning about US$66,000 every year. This makes him the only person to date to lose more than US$2 billion ($3 billion) on a single day’s trading by himself and with no accomplices.
Jerome’s uncalculated investment 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. Instead, his blind hope sunk amid market falls that happened after that.
It later emerged that Jerome suffered the loss deliberately 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 Jerome compromised the company’s trading policies. As a result, the company laid him off immediately. Jerome’s unauthorized trades cost him his lifelong savings and he was thrown into jail after several failed appeals.