Poorest Person in the World
As of 2014, Jerome Kerviel is the poorest person on the planet. He is an ex-Societe Generale Trader who was recently sentenced to three years in prison after surrendering to French authorities. After engaging in $73 billion in illegal agreements, forgeries, and other shady activities, he owes $6.3 billion. As a result, he is the world’s most indebted individual making him the poorest person in the world in terms of money.
How did he become the poorest person?
He was promoted to a Junior Trader for his bank’s Delta One business in 2005, which includes program trading, swaps, ETFs, quantitative trading, and index futures. Christian Noyer, the Governor of the Bank of France, praised him as a “Computer Genius.” His computer skills, on the other hand, were in irresponsible hands as he carried out $73 billion in unauthorised transactions along with computer hacking. He was utilizing these vast sums of money to engage in arbitrage trading, which involves taking advantage of two stocks trading at different prices when they should be trading at the same price. In any case, he should have sold the expensive stock, bought the cheaper stock, and waited for the prices to equalize. The difficulty is that the profit margins are usually so slim that you’ll need a lot of cash to make a comfortable living. So Jerome took advantage of his bank’s inadequate controls to steal $73 billion. He saw that the bank only recorded the net amount rather than the gross, implying that they were only concerned with the final figure and whether it was a loss or gain. Kerviel used arbitrage trading to make some fictitious short position bets and some actual long position bets. The bank then separated his false bets from his real bets, and $73 billion worth of trades vanished as if by magic. If he had been compelled to take a vacation, this would not have been conceivable, which is one of the reasons this doesn’t happen as frequently as it used to.
What makes him the poorest person?
He had built up massive bets and losses by the time the fraud was discovered, owing to the bank $6.3 billion, more than he will ever be able to pay. I understand he was sentenced to three years in prison, with two years suspended, and he may have to pay a portion of his wages into a fund for the rest of his life, but given that he will never, ever be able to pay off his vast debt, you might say he is the poorest man on the planet. Compare this to the children of some African countries, such as the Congo, or Asian countries, such as Cambodia. There are children and adults that are homeless. People who live on $1 a day have no food, no water, no clothes, and no shelter. If you asked them if they would exchange lives with Jerome Kerviel, I’m sure they would say yes because he has food, clothing, shelter, and water and will never go hungry. In a single year, Jerome Kerviel amassed more wealth than entire countries and regions will ever see. But at the same time he also debt that will never be paid off. So on paper, he is the poorest person in the world, but there are still billions who can’t even afford basic needs.
Disclaimer: The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.