He doesn't always lose money. But when he does, he loses more than $6 billion. He is ... the most indebted man in the world. Jérôme Kerviel is learning one of life's harsher lessons: It stinks to be $6.3 billion in debt.
Former financial arbitrage trader Jerome Kerviel is the most indebted man on the planet, owing his former employer $6.3 billion. The amount Kerviel owes to French bank Societe Generale for fraudulent trades made in 2007 and 2008 would make Kerviel one of the 50 richest people in America if those debts were assets.
One of the biggest banks in Europe, Société Générale, once employed Kerviel. Jerome is a computer prodigy and holds a master's degree in finance. Jerome has a debt of Rs 495,068,952,000.
Jerome Kerviel was a junior level derivatives trader for French securities firm Société Générale. He was charged with losing more than €4.9 billion in company assets by conducting a series of unauthorized and false trades between 2006 and early 2008.
Accounting for 70% of all American debt, mortgage debt carries the highest total at $10.44 trillion. Forty-two percent of households have mortgages.
Jerome Kerviel was a junior level derivatives trader earning US$66,000 per year at Societe Generale, one of Europe's largest banks.
Jérôme Kerviel, the Société Générale trader who used his knowledge of the bank's electronic risk controls to conceal billions in unauthorized bets, has a new job — at a computer consulting firm.
On 5 October, he was found guilty and sentenced to five years of prison, with two years suspended, full restitution of the $6.7 billion which was lost, and a permanent ban from working in financial services.
1. SOCIETE GENERALE DISCOVERED THE FRAUD IN JANUARY 2008. On 18 January 2008, after being alerted by its control systems, Societe Generale conducted an internal investigation and discovered that one of its traders, Jérôme Kerviel, had created fictitious trades to conceal one of his transactions.
That was what happened with Nick Leeson. Leeson was a rising young trader at England's Barings Bank in 1995 until he lost $1.3 billion of the bank's money in risky derivatives and unauthorized derivatives trades. The venerable bank collapsed, and Leeson spent four years in a Singapore prison.
On the other end of the spectrum, Brunei has the lowest debt to GDP ratio at 1.90%, followed by the Cayman Islands at 4.50%, Kuwait at 7.10%, and Afghanistan at 7.40%. There are regional trends when it comes to debt to GDP ratios.
Average. PARIS — Jérôme Kerviel was too middling to be considered a loser. Until he was charged by Société Générale with perpetrating the biggest fraud of its kind in banking history, there was nothing superlative about him.
Barings was brought down in 1995 by a massive trading loss caused by fraudulent trading by its head derivatives trader in Singapore since 1992, Nick Leeson.
Between mortgage loans, credit cards, student loans, and car loans, it's not uncommon for the typical American to have one or more types of debt. The ones who are living debt-free may seem like a rarity, but they aren't special or superhuman, nor are they necessarily wealthy.
Ramsey began as one of three alternating hosts of The Money Game on radio station WWTN/Nashville in 1992. The show eventually became The Dave Ramsey Show, Ramsey's daily three-hour call-in financial advice talk show. Financial Peace University, Ramsey's nine-lesson, video-based personal finance course, debuted in 1994.
According to that same Experian study, less than 25% of American households are debt-free.
According to a study from Invezz, Australia's household debt is the fifth highest in the world, at about $86,000 per household. Given that the average available income is only $42,554, the amount of debt owed by households is a whopping 203%.
Household Income and Wealth, Australia
Three in four (75%) households had debt in 2019–20.
The Australian Bureau of Statistics provides Household Debt in local currency and Nominal GDP in local currency. In the latest reports, Australia Household Debt reached 1,964.1 USD bn in Dec 2022.
The trading incident
On 15 September 2011, Adoboli was arrested under suspicion of fraud in connection with a loss of a then-estimated US$2 billion, reportedly due to unauthorized trading at the Swiss group's investment bank.