He graduated with a master's in finance from Lyon's Lumiere University.
One of the biggest banks in Europe, Société Générale, once employed Kerviel.
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The parameters for poverty are usually defined by the lack of a roof over one’s head and the inability to afford three meals a day. According to the World Bank, as of March this year, the global poverty rate is 46.9 %. However, did you know that the poorest man in the world lived a luxurious life that most common men could not afford? Sounds downright crazy right? That is because in this case the level of poverty has been deciphered on account of the amount of debt he has, and it’s huge.
The mantle of the poorest man on earth has been given to French citizen Jerome Kerviel. One of the biggest banks in Europe, Société Générale, once employed Kerviel. Jerome is a computer prodigy and holds a master’s degree in finance. Jerome has a debt of Rs 495,068,952,000. This is the highest amount of debt any individual owes to third parties and hence Jerome is often called the poorest man on earth.
Jerome was born in Pont-al-Abe, France. His mother worked as a hairdresser, and his father was a blacksmith. He graduated with a master’s in finance from Lyon’s Lumiere University. After finishing his education, he began working at Société Générale Bank of France as a junior derivatives trader. He was assigned to the Delta One division, which trades equity derivatives, algorithmic trading, exchanges, ETFs, and software investments. He used to receive a salary of Rs 5,449,798 here.
Jerome yearned to be wealthy. He had extensive computer knowledge. He was eclipsed by his talent. Jerome began arbitrage trading using company funds, taking advantage of system weaknesses, although the company remained unaware of this He initially made a lot of money doing this. He made an estimated $73 billion in trading in a year. His forgery was discovered by the Société Générale on January 19, 2008.
Due to Jerome’s manipulation of the bank’s funds during the year, Société Générale suffered a loss of 7.2 billion dollars. In 2008, Jerome was accused of forgery, breach of trust, and unauthorized computer use. Jerome was deeply in debt at the time his scheme was discovered. He owed $6.3 billion in debt. Jerome was sentenced to 3 years in the year 2015. He has now come out of prison after serving his sentence and is trying to get his life back on track but the debt remains.
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first published:June 09, 2023, 12:39 IST
last updated:June 09, 2023, 12:39 IST
Absolutely, let's break down the concepts and terminologies used in the article:
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Société Générale: It's one of the largest banks in Europe, and it once employed Jerome Kerviel. The bank suffered substantial losses due to Kerviel's unauthorized trades, leading to a loss of $7.2 billion in 2008.
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Poverty Parameters: Traditionally, poverty is often defined by the lack of shelter and the inability to afford basic necessities like food. However, in this article, the concept of poverty is redefined in terms of debt owed, attributing the label of "poorest man" to Jerome Kerviel due to his massive debt of Rs 495,068,952,000.
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World Bank's Poverty Rate: According to the World Bank, as of March, the global poverty rate stands at 46.9%. This rate usually focuses on income levels below a certain threshold, though the article shifts the narrative to highlight a unique case where wealth and poverty are redefined by debt.
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Jerome Kerviel: He's the central figure in the article, known for being a former employee of Société Générale. Kerviel, armed with a master's degree in finance and significant computer skills, engaged in unauthorized trading within the bank, resulting in substantial profits initially but eventually causing a loss of $7.2 billion to the bank. He was sentenced to three years in prison due to his actions.
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Debt as Indicator of Poverty: The article challenges the conventional perception of poverty by illustrating how Kerviel's immense debt portrays him as the "poorest man" despite having once made significant profits through his trading strategies.
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Financial Manipulation and Consequences: Jerome's actions of manipulating the bank's funds led to substantial losses, and his subsequent debt, which he accrued due to his unauthorized trades, had severe legal and personal repercussions.
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Delta One Division: This is the sector within Société Générale where Kerviel was employed. It focused on trading equity derivatives, algorithmic trading, exchanges, ETFs, and software investments.
The article provides an unconventional perspective on poverty, using the unique case of Jerome Kerviel to redefine the traditional understanding of wealth and destitution through the lens of debt owed rather than income levels or basic needs.
Understanding these concepts requires a nuanced view of poverty, financial systems, ethical conduct within financial institutions, and the consequences of financial manipulation.
