Jerome Kerviel, one of the wealthiest people at one time, is known as the poorest man today. He is a French consultant and trader. Jerome worked at one of the most eminent banks in Europe, Société Générale. However, a scandal resulted in him losing his wealth. While you may see most people’s net worth in thousands and millions of dollars, Jerome Kerviel’s net worth is negative.
Let’s tell you about Jerome Kerviel’s life, career, and how he became the poorest person on Earth.
Jerome Kerviel Early Life and Career
Jerome was born on January 11, 1977, in Pont-l’Abbé, Brittany, France, to parents Charles and Marie-Josée. Charles worked as a blacksmith, whereas Marie-Josée was a retired hairdresser. Jerome also has an older brother Oliver.
Jerome Kerviel studied at the University of Nantes and graduated with a bachelor’s degree in finance. He later enrolled in the Lumière University Lyon 2 and specialized in Master of Finance in 2000.
Jerome joined the Société Générale bank’s compliance department in 2000. He later got promoted to the Delta One team in 2005 in Paris as a junior-level derivatives trader. He was making around $66,000 a year.
Jerome Kerviel Scandal
Jerome Kerveil caught the limelight in January 2008 when the French bank Société Générale filed a lawsuit for breach of trust, fraud, and forgery.
Jerome Kerviel was earning good money at Société Générale. But, soon he started creating fake trades in 2007, anticipating a fall in market prices with increased profits. Jerome also made losing trades to avoid getting into trouble. Yet, it was not long until he was caught as Société Générale had to bear a loss of $7.2 billion due to his US$73 billion stock index futures position in 2008. His illegal and fake trades came to light eventually.
You might find it surprising that Jerome did not escape the accusations and charges. Instead, he mentioned that the bank was aware of the unauthorized trades and did not take action because they were going well. Analysts believe that Jerome might be telling the truth as an internal audit showed that managers did not hold Jerome accountable for his questionable activities. Some also resigned from their jobs following the scandal. Police took Jerome into custody on January 26, 2008, and charged him on January 28, 2008, with legal access to the computers.
Jerome Kerviel Prison Time
Jerome was charged with illegal access to computers and abuse of confidence in January 2008. The charges could have cumulatively kept him in prison for three years. But, he served less than five months in jail before being released in September 2014.
Jerome Kerviel’s Net Worth
Jerome Kerviel’s net worth is -$6.7 billion.
If the tables were turned, he could have been among the top 50 richest Americans. The amount he owes to Societe Generale would have made him among the richest if they were assets.
Jerome Kerviel Debt
Jerome committed fraud of over $6.7 billion with the French bank Société Générale, and people typically think that all his money would keep going to the bank to pay his debts. However, SocGen spokesperson Caroline Guillaumin said that the court slashed the payable amount to 1 million euros in September 2016. She mentioned that the recovery amount of $6.7 billion was symbolic, and they know that Jerome cannot pay that back. The bank has not given up on recovering the 1 million Euros and has contacted Jerome’s lawyer to ask about resuscitation money.
Jerome Kerviel Now
While Jerome Kerviel is considered the poorest person on Earth because of his negative net worth, he is not jobless. He is an IT consultant at Lemaire’s consultancy firm. However, all the money he makes majorly goes into paying his never-ending debt.
The Bottom Line
Jerome Kerviel has a net worth of -$6.7 million and is considered the poorest man in the world. His negative net worth is attributed to his debt to the French bank Société Générale. Jerome conducted fraudulent trades while working at the bank, leading to a $7.2 billion loss to the company. He served five months in prison. Jerome works as an IT consultant at Lemaire’s consultancy firm and has to pay back 1 million Euros.
Is Jerome Kerviel Rich?
While Jerome Kerviel could have been one of the wealthiest people in America, he is the poorest person in the world, considering his net worth.
How much Money does Jerome Kerviel have?
Jerome makes €2,300 a month from his IT consultancy job. However, the bank looks forward to him paying the €1 million debt.
What Really happened at the Societe Generale?
The bank identified Jerome’s fraudulent activities which included fictitious trades and transactions. The bank faced major losses, and many people resigned from their jobs subsequently.
What is Jerome Kerviel’s Net Worth?
Jerry is Editor on Vipaa.net. After completing bachelor’s in Computer Sciences, Jerry decided to pursue a career in Digital Marketing.