The world’s poorest person is a man by the name of Jerome Kerviel. He is the poorest of the 689 million people who live in severe poverty on $1.90 or less a day.
Jerome Kerviel, a French rogue trader who was found guilty and given a prison sentence for breach of trust, forgery, and unauthorized use of the bank’s systems in 2008, caused losses in the Société Générale trading loss of €4.9 billion.
How The World’s Poorest Man Was Arrested
According to reports, in 2015, the poorest man in the world turned himself in to French authorities to begin a three-year prison term. On the night that Jerome Kerviel surrendered to the Menton police, a throng of reporters and admirers surrounded him.
Even though he acknowledged making the illegal trades, he claims that the bank ignored him when things went well but turned against him when they didn’t.
It is difficult to determine who is the poorest person in the world because so many people are vying for basic necessities; yet, according to debt, Jerome Kerviel is the one who is truly the poorest in the world.
Who Is Jerome Kerviel, The World’s Poorest Man?
The world’s poorest guy is Jerome Kerviel. He was raised in Brittany’s Pont-l’Abbé. His mother Marie-Josée is a former hairdresser, while his father Charles was a blacksmith. His older brother is named Olivier. Although Kerviel was married, he and his wife divorced in 2008.
The finance program at the university, which was launched in the 1990s with assistance from France’s major banks, was designed to train students for middle and back office roles in the trading divisions of financial organizations.
In 2000, Kerviel earned a Master of Finance degree from Lumière University Lyon 2 with a focus on the management of financial markets. Prior to that, he earned a bachelor’s degree in finance from the University of Nantes.
Due to his transformation into the worst-case scenario of a rich man who has turned poor, the poorest man in the world has given up the pursuit of wealth. Jerome Kerviel’s experience is both extremely unexpected and terrifying. Many individuals keep wondering how a billionaire could have suddenly lost all of their riches.
Kerviel “was a student just like the others, a young man, and he didn’t distinguish himself from the others,” according to Gisèle Reynaud, Kerviel’s former professor at Lyon, in an interview.
On the advice of Pont l’Abbé mayor Thierry Mavic, Kerviel ran unsuccessfully for a seat on the town council in 2001 with the Union for a Popular Movement.
How did Jerome Kerviel end up being the world’s poorest person?
The majority of people think that the poorest person in the world is suffering because of the harm he caused. He owes $6.3 billion after indulging in $73 billion in shady transactions, forgeries, and illegal agreements. Jerome Kerviel is the most indebted person in the world as a result, making him the poorest person on earth.
He is a former Societe Generale Trader who turned himself in to French police and received a three-year prison sentence.
How It All Began…
In 2005, Jerome Kerviel worked as a Junior Trader for the Delta One division of his bank, which deals in index futures, swaps, ETFs, program trading, and quantitative trading.
He was referred to as a “Computer Genius” by the Governor of the Bank of France, Christian Noyer. On the other hand, he used his computer abilities recklessly to carry out $73 billion in illegal activities and hack computers.
On the other side, on January 9, 2008, Jerome Kerviel had acquired a stock index futures position worth US$73 billion, costing Societe Generale (SocGen) US$7.2 billion. His managers found illegal trading connected to him on January 19, 2008.
With these enormous sums of money, the poorest guy in the world was engaging in arbitrage trading, which entails profiting from the fact that two stocks are trading at different prices when they ought to be at the same price.
By the time the fraud was uncovered, he had accrued enormous bets and losses and owed the bank $6.3 billion, an amount he will never be able to repay.
An internal investigation by SocGen revealed that bank officials had ignored dozens of alarms regarding Kerviel’s conduct. There were several resignations that followed, but no more accusations were brought.
Furthermore, his return home serves as something of a climax to a story that began with massive illegal trades on the verge of the financial catastrophe and continued with a pilgrimage and pope meeting.
What Is Jerome Kerviel Net Worth
Jerome Kerviel is the world’s poorest man with a net value of $6.7 billion. Kerviel would have been among the top 50 richest people in America if his debts to the French bank Societe Generale for deceptive trading were assets.
SocGen states that Kerviel “began creating the phony trades in late 2006 and early 2007; however, these transactions were relatively small; the fake trading rose in frequency, and scale.” Kerviel was entrusted with finding disparities between the prices of stock derivatives and cash equities.
They have, however, charged him with abusing his position to take part in illegal transactions of up to €49.9 billion, an amount far greater than the bank’s total market worth.
According to bank officials, he profitably traded throughout 2007 in anticipation of falling market prices. In an effort to conceal the behavior, Kerviel made calculated losses in trades to counterbalance his early wins.
According to the BBC, the world’s poorest person made €1.4 billion in unreported profits at the beginning of 2008. His employers assert that they found unlawful trade associated with Kerviel on January 19, 2008.
When SocGen sold these positions over the course of three trading days beginning on January 21, 2008, the market experienced a rapid decline in equity indices; the resulting losses are estimated at €4.9 billion ($7 billion).