Peer pressure is an interesting thing – sometimes it can make you do foolish things that begin with you saying "here, hold my beer", and ends with a good laugh among your friends. Sometimes however, peer pressure can make you say things like "hey let me bet this spread", and ends in giving your ex-wife the very last asset you own.
The latter is the case with Amit Goyal, a 39 year old a former trader for Deutsche Bank and UBS in London. As the Daily Mail reports, Amit and his wife Ankita at one point enjoyed the finer things in life on Amit's £300,000 a year income, and then it all went south. Amit sought to earn additional income by spread betting, and at first he recorded gains of up to £30,000 a year, but in 2007 started to incur losses of up to £300,000 a year – oops.
By the time Amit and Ankita split up in 2011, the former trader had lost at least £500,000 – today, with lawyer fee's added to the mix, Amit's debt comes in at a staggering £650,000.
With £650,000 in debt, no job, and no wife, it's hard to imagine things getting any worse for the UBS alum, but a recent court order has managed to accomplish just that. Although, with the excuse Amit gave as to why he acted so recklessly and didn't stop betting, it could have been predicted.
Divorce Judge Glenn Brasse, in a judgement delivered last year, slammed Amit's reckless behavior. "Mr Goyal told the court that there was a constant circulation among the traders of information and tips about spread bets, with a strong peer pressure to participate. He told the court that those who declined the invitation were laughed at as wimps, so in order not to lose face, a trader would feel he had to take part. The husband did not want to be seen as a wimp. He wanted credibility in the eyes of his peers" – brilliant, who hasn't blown a few hundred thousand because some of your buddies were giving you a hard time.
Brasse ultimately ordered Goyal to sell the only asset he has left, roughly £19,000 worth of UBS shares and hand over the money to his ex-wife. In addition to that, Amit was ordered to pay £500 a month maintenance and share his pension.
Goyal later appealed the ruling, arguing that he has no job to go to, doesn't actually have a pension, is living off benefits and the UBS shares are the only asset he has left.
As the appeals court threw out the challenge, Justice Cobb said that "Mr. Goyal had indulged in 'financial recklessness to the detriment of his family. The wife was entitled to such financial payments as the depressingly limited family assets would permit, to provide if possible for housing. The husband had frittered away the matrimonial assets, having dissipated all the wealth of the family, this husband should not have a penny more."
Alas, Amit Goyal may not have his wife, or his job, or even one single penny to his name, but Goyal can most assuredly rest easy at night knowing that he's still got his "credibility."
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