The most indebted man in the world owes former employer $6.3 billion (2024)
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.
The Atlantic's Matthew O'Brien writes that Kerviel managed €50 billion ($73 billion in unadjusted dollars) worth of unauthorized trades during his tenure at Societe Generale, using a sophisticated scheme of computer hacking and deceptive trades to deceive the bank.
O'Brien writes:
"In plain English, arbitrage just means taking advantage of discrepancies when things should have the same price, but don't. The idea is to buy the cheaper one, sell the more expensive one, and then wait for them to converge. The beauty is it doesn't matter whether markets go up or down--you're both long and short--just that the prices actually converge."
O'Brien spoke with former investment banker and current University of San Diego law professor Frank Partnoy about the logistics of trying to collect $6.3 billion from a single individual.
"Well, he's obviously not going to be able to pay the fine," Partnoy told the Atlantic. "What happened to Kerviel is the financial equivalent of sentencing someone to life plus 100 years. They'll likely reach some kind of agreement where a significant percentage of any money he makes for the rest of his life will be paid into a fund to cover the fine. He'll be like Sisyphus pushing the boulder up the hill every day for the rest of his life."
And while you could debate whether there are better ways for Kerviel to pay back Societe Generale, Partnoy offers a stark comparison to the fines levied against some of the world's largest financial institutions. In 2010, Goldman Sachs agreed to a $550 million settlement with Securities Exchange Commission, paid in part to investors and the U.S. government, which the SEC described as the largest settlement in history against any Wall Street firm.
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
Societe Generale
Société Générale S.A. (French: [sɔsjete ʒeneʁal]), colloquially known in English speaking countries as SocGen ( French: [sɔk ʒɛn]), is a French-based multinational financial services company founded in 1864, registered in downtown Paris and headquartered nearby in La Défense.
https://en.wikipedia.org › wiki › Société_Générale
Jerome is a computer prodigy and holds a master's degree in finance. Jerome has a debt of Rs 495,068,952,000. This is the highest amount of debt any individual owes to third parties and hence Jerome is often called the poorest man on earth.
Originally Answered: Who is the most in debt person in the world? The former Société Générale rogue trader Jérôme Kerviel owes the bank $6.3 billion. He is the most indebted person I've heard of, not sure if he has cleared the debt now.
Jerome Kerviel, The Most Indebted Person In The World, Owes $6.3 Billion To Former Employer, Societe Generale. In a hyper-competitive world where everyone strives to be the biggest, boldest and most famous, no one covets Jerome Kerviel record-breaking achievement.
In December 2021, debt held by the public was estimated at 96.19% of GDP, and approximately 33% of this public debt was owned by foreigners (government and private). The United States has the largest external debt in the world.
The Standard Route is what credit companies and lenders recommend. If this is the graduate's choice, he or she will be debt free around the age of 58. It will take a total of 36 years to complete. It's a whole lot of time but it's the standard for a lot of people.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.
Musk has to contend with over $13 billion of debt still weighing down a swiftly sinking Twitter, Tesla's profits shrinking because of a lack of demand and new products, and a world that is generally sick of his schtick. In Muskland, everything is connected by money — problems at one business bleed into the others.
If the U.S. was to pay off their debt ultimately, there is not much that would happen. Paying off the debt implies that the government will now focus on using the revenue collected primarily from taxes to fund its activities.
Among other countries, Japan and China have continued to be the top owners of US debt during the last two decades. Since the dollar is a strong currency that is accepted globally, holding a substantial amount of US debt can be beneficial.
1 Foreign governments hold a large portion of the public debt, while the rest is owned by U.S. banks and investors, the Federal Reserve, state and local governments, mutual funds, pensions funds, insurance companies, and holders of savings bonds.
The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
Switzerland is a country that, in practically all economic and social metrics, is an example to follow. With a population of almost 9 million people, Switzerland has no natural resources of its own, no access to the sea, and virtually no public debt.
China focuses on export-led growth to help generate jobs. To keep its export prices low, China must keep the renminbi low compared to the U.S. dollar. U.S. debt to China comes in the form of U.S. Treasuries, largely due to their safety and stability.
Dave Ramsey is the founder and CEO of the company Ramsey Solutions, where he's helped people take control of their money and their lives since 1992. He's also an eight-time national bestselling author, personal finance expert and host of The Ramsey Show.
The average personal debt per individual grew from $21,800 in 2023 to $22,713 in 2024, excluding mortgages, according to recent research from financial services company Northwestern Mutual.
Debt-to-income ratio is your monthly debt obligations compared to your gross monthly income (before taxes), expressed as a percentage. A good debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is considered to be too much debt.
Address: Suite 228 919 Deana Ford, Lake Meridithberg, NE 60017-4257
Phone: +2613987384138
Job: Chief Retail Officer
Hobby: Tai chi, Dowsing, Poi, Letterboxing, Watching movies, Video gaming, Singing
Introduction: My name is Zonia Mosciski DO, I am a enchanting, joyous, lovely, successful, hilarious, tender, outstanding person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.