NET WORTH: | -6.7$ Billion |
---|---|
Name: | Jerome Kerviel |
Date Of Birth: | 1977 (age 46 years), Pont-l’Abbé, France |
Source Of Income: | Trader |
Gender: | Gender |
Nationality: | French |
Weight: | 75 KG |
Height: | 6 Feet |
Jerome Kerviel was a former french trader at the prestigious European bank Societe generale. He made an unfortunate debt to the bank of $6.3 billion. He also was charged and jailed after Société Généralea filed and won a lawsuit for him being deceitful, engaging in forgery with the bank’s processing, and unlawfully utilizing the bank’s inside technology and derivatives for trading and making money. This article discuss will discuss Jerome Kerviel Net Worth, Bio, Career, Scandal, Family & Awards!
Jerome Kerviel Net Worth
Because of the debt he generated, Jerome Kerviel net worth is around -$6.7 billion. Not only did he lose his wealth in the race to gain more, but he also became the poorest person alive and a white-collar criminal. After finishing his 3 years in jail, he was acquitted and now works as a finance consultant.
Early Life
Jerome Kerviel was born in France on the 11th of January,1977. He grew up in Pont L’Abbe. His father, Charles, was a blacksmith, and his mother, Marie-Josée, was a former hairdresser. He was an elder brother to the youngest, Oliver.
For his education, he did his bachelors from the University of Nantes in finance. With aspirations to achieve more, he earned a master’s degree in 2000 in finance from Lumière University Lyon 2 and became a finance wizard.
As soon as he turned 23, in 2000, he joined the European bank Société Générale in compliance, but within 5 years, he became a trader dealing with derivatives within. His job was to capitalize on the market price stock and equity disparity.
Biography
Jerome Kerviel age is 45 years and nationality is French. His birth sign is Capricorn. Jerome Kerviel height is approximately 6 feet, and his weight is around 75 KG. Jerome Kerviel’s Instagram is “JeromeKerviel,” with 164K followers.
His fraud scandal made such big headlines that the news spread all over. There is a movie based on the story of Jerome Kerviel, “Team Spirit.”
He was very interested in sailing and has good judo skills. A book as a case study was published under the name of ” Societe Generale: The Case of Jerome Kerviel” by Joshua Modjo in 2016.
Career
By 2005, Jerome Kerviel was a full-time trader at the European Société Générale’. He started making trades using derivatives. His main goal was to capitalize on the stock and equity market.
Working at the back office, he familiarized himself with the company policies. He analyzed the factors that approve the trades and what regulated the brokers. He factored in derivatives such as swaps and futures to analyze the pricing.
By 2006, Jerome Kerviel was illegally trading by setting up false trades in the bank’s system to bet against. He used inside information to game the system, place bets against the odds, and win. He managed a stock index of $73 billion by 9th January 2008.
But with trading, you don’t always win. To make his trade legitimate, he, on the other hand, started losing trades so that his frauds won’t get noticed in the system. At the company, he was known as the money-making machine. Stocks and businesses go up during social situations, such as the London attacks in 2005 and 9/11. Kerviel made massive profits for the company.
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Red-Flagged
He was red-flagged when he made three massive trades.
- A 2 billion Euro London future index trade
- A 18 billion Euro german future index trade
- Massive 30 billion Euro European stock index trade
In the company’s system, he used to hack and mark high-risk trades as low-risk trades and bet on them. by 2007, and he made US $2 billion from profiting off such trades. Jerome Kerviel made more than 1000 illegitimate trades as a rogue trader.
His losses put the bank and its stability a question. But time always ran out, and the managing staff red-flagged his activities on the trading board and soon found out about his method. Upon analysis, they came up with an estimated loss of $73 billion. They fired him and filed a lawsuit against him.
He went to trial in the French court on 8th June 2010 and was convicted of fraud charges. The French court served him with three years in jail and a fine of 4.9 billion euros. But his sense was cut short regarding time and amount. A permanent ban on working in the finance industry was also imposed on him.
Timeline Of The Trading Scandal
January 2008:
Jérôme Kerviel’s illegal trading was red-flagged by Société Générale. They caught on to his methods of opposite bot trades and forgery of inside information.
Societe generale informed the authorities his laptop was confiscated, and he was placed in custody after the company filed a lawsuit for evidence against him.
The prosecutor did not take the charges seriously, and was released from custody.
April 2008:
He was hired as a consultant at Lemaire Consultants.
June 2010:
The trial in French courts commenced
October 2010:
After a short trial, he was found guilty and was suspended from working in the finance industry; he was charged to pay the loss of $6.7 billion with 5 years of prison time.
October 2012:
After consistent appeals, the french court reduced his sentence to 3 years, and reimbursement of loss was reduced to 4.9 billion euros to Société Générale. The period ban on work remains for 2 years.
March 2014:
The French court again revisited the case. They relieved him of his debt.
September 2014:
He was released from detention after serving his period.
June 2016:
A motion was filed in the French court against Société Générale for firing Jerome Kerviel without a valid reason or evidence.
December 2018:
The French court sides with Société Générale for firing Kerviel but also reduces his debt to $1.12 million.
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Family
Jerome Kerviel’s family details are very private. We only know about his father, Charles, his mother, Marie-Josée, and brother, Oliver. Jerome Kerviel’s wife’s identity is unknown. The pair were divorced before his arrest and fraud scandal in 2008.not much is known about his private life after his sentence.
Awards And Achievements
- In 2005, he sold shares for 10 million euros.
- He made a profit of $4 million for the bank in 2005.
- In 2005, he was promoted to the delta one product team at Societe generale.
- In 2008, he had an index position of US$ 73 billion through trading.
- He has an award for the John Smith Guggenheim Memorial Foundation Fellowship.
- He went on a foot pilgrimage to meet the pope and talk about the negatives of modern capitalism.
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Conclusion
Jerome Kerviel was a trader and an employee at Société Générale, where he was exceptional at trading with derivatives. He was pulling in profits for more than 1 billion but trading with illegal inside information, frauds, and forgery. He was charged with a debt of €4.9 billion and had to serve 5 months in jail. Jerome Kerviel net worth is negative, and he is known as the poorest person on earth. He now works as a consultant at a french finance company.
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