Even though the poorest person has to be someone who thrives hard to get necessities in life, going into a huge amount of debt also renders one a poor person. Jerome Kerviel is known to be the poorest man in the world. He owes up to -$6.5 billion.
Who Is Jerome Kerviel?
Jerome is a French national born on January 111, 1977, in Pont-l’Abbe, Brittany, France. He is the son of Marie-Josè and Charles Kerviel. He has an older brother called Olivier. Jerome’s mother was a hairdresser and his father was a blacksmith.
In 2008, Kerviel and his wife got separated. There is no information about his ex-wife.
Kerviel graduated from the University of Nantes with a degree in finance and later graduated from Lumière University of Lyon 2 with a master in finance. He specialized in the organization and control of financial markets.
Jerome Kerviel was a financial consultant and trader. He worked for Société Generalé, one of Europe’s big banks. He worked as a junior trader for the bank’s Delta One team.
His duties included program trading, exchange-traded funds, swaps, index futures, and quantitative trading. He was so good at his job that even his boss, Christian Noyers refer to him as the “Computer Genius”.
How Did Jerome Kerviel Become Poor?
In 2008, SocGen discovered that Jerome was involved in unauthorized trades. SocGen states that Kerviel was assigned to arbitrage distinctions between equity derivatives and cash equity prices. He started by creating fake transactions back in 2006 and 2007.
These transactions increased and led to the bank losing €49.9 billion which is higher than the bank’s total market capitalization. Following that, he intentionally started losing trades in pursuit to cover his tracks.
After the company has carried out an investigation, internal reports found that managers at the bank had failed to follow up on tens of different activities by Kerviel. Several resignations followed, but no other charges were pressed.
When Was Jerome Kerviel Arrested?
After being found out, Jerome admitted his actions but also said that the bank never complained when he was winning. They charged him with fraud, violation of trust, and unauthorized computer usage.
He is said to have turned himself in to the Menton Police in France.
Kerviel was initially charged with abuse of confidence and illegal access to computers on 28 January 2008. he was given a maximum three-year prison term. On 29 January 2008 investigating judges Renaud van Ruymbeke and Françoise Desset had rejected prosecutor Jean-Claude Marin’s bid to charge Kerviel with the more serious crime of “attempted fraud” and refuse bail.
Kerviel’s trial began on 8 June 2010. He was found guilty and sentenced to five years of prison, with two years suspended and full restitution of the $6.7 billion which was lost, and a permanent ban from working in financial services on 5 October.
Where Is Jerome Now?
Currently, he works as an IT consultant. He has finished serving his three-year prison sentence.
READ MORE ON CBGIST.