The hunt for wealth is an endless struggle that involves both rich and poor individuals alike. Several publications that maintain a close eye on the net worth sideline the poverty-stricken. It is hilarious to think of one who qualifies as the poorest when there are many out there. So, who is the poorest person in the world?
Jerome Kerviel is the poorest individual in the world right now. The story of a wealthy man turned poor is now the talk of the town, with many holding that he is presently the poorest man on earth.
What happened to Jerome Kerviel is highly surprising and daunting at the same time. Many people cannot stop imagining how a billionaire could have lost their wealth overnight. Most people maintain he is now suffering the pain he brought to himself.
How Jerome Kerviel became the poorest person in the world
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Jerome Kerviel may not have thoroughly thought that a single high-risk business practice would see his wealth rolling down the hill. His appetite for amassing a vast security position would later leave him counting on severe losses and becoming the poorest person ever.
Experts have likened his fatal risk with about 1.5 times the market capitalization of a global bank, or five times the economic output of Cambodia. So, it could be less surprising if no one knew about the risk grounds that Jerome was treading.
Jerome worked with a leading banking firm as a junior level derivatives trader, earning about US$66,000 every year. His hard work at Societe Generale (SocGen) saw him accumulate a whopping US$73 billion stock index futures position in the wake of 2008.
His decisions, later on, cost SocGen a tune of US$7.2 billion, roughly six times more of what Nick Leeson lost at Barings. Derivatives are lucrative investments drawing value from real assets, including oil price, market index, and stock.
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Investing in the Eurostoxx pan-European stock index futures contracts (30 billion Euros), Germany’s DAX futures (18 billion euros), and London’s FTSE futures (2 billion euros) was never a good idea.
He made this move hoping that the markets would shoot in the following months, and he would have profited through arbitrage. Instead, his blind hope sunk amid market falls that happened after that.
It later emerged that Jerome suffered the loss deliberately to mask his illegal dealings at the company. According to a report released by SocGen, Jerome had been involved in a series of trade frauds.
The report uncovered no other charge against him. These revelations indicated that he had indeed undermined the company’s trading policies. As a result, the company fired him soon after.
A few years back, Jerome handed himself to the authorities and started serving a jail sentence for his breach of trust at Societe Generale. The trader has more debt than the most unfortunate person you have ever met. Little did Jerome know that his involvement in unauthorized trades would cost his lifelong savings and throw him into jail after that.
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His outcry to receive a presidential pardon fell on deaf ears even as Michael Sapin, The Minister of Finance in the French government, insisted on his incarceration.
The crook is caught, the crook is convicted, the crook should of course serve his sentence.
Who is the poorest person in the world?
Who is the poorest man alive? Jerome has gone down in history as a man behind the world’s most massive trading fraud and is currently the world’s poorest man. Behind his costly suits, Jerome is now the world’s poorest man considering he owes SocGen more than $6.3 billion.
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Becoming the most indebted man on earth makes Jerome miserable than homeless people. Jerome Kerviel’s net worth is now meagre than a few years ago when he was a chief trader at SocGen.
How many years was Jerome Kerviel sentenced to prison?
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Former Societe Generale trader and the poorest man on earth was sentenced to three years in prison by a Paris court for his trading scandal. In addition, the court ordered him to pay the French bank 4.9 billion euros ($6.8 billion).
He was given his three-month jail sentence in 2010 but was initially jailed in 2008 after his arrest for the fraud case. However, he didn’t finish his entire jail sentence in prison as he was released to remain under supervision with an electronic tag on his ankle.
How many poor people are there in the world?
There are around 1.89 billion poor people globally, nearly 36% of the world’s population. According to the World Bank, the world’s poorest live on less than a dollar a day. The global institution collects information about individuals through household surveys.
A discussion into who is the poorest person in the world unveils a worst-case scenario of a rich man turned poor contrary to what most people would expect. If net worth is something to go by, then Jerome Kerviel is the poorest man alive in the 21st century, and he may hold this record for several more years.
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Source: Kenya Breaking News Today
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