Re: [ga] ICANN loses $4.6 mil

["Jeffrey A. Williams" <jwkckid1@xxxxxxxxxxxxx>]

Debbie and all,

  Well Debbie, I have to agree that what goes up, will eventually
come down, but it is not always true nor historically correct that
what goes down will come back up.  This is a basic law of investment.

  ICANN's mistake was that they held on too long, and failed to
see the economic downturn coming.  That's a judgment error of
what we know of rether significant purpotions and demonstrates
poor judgment accordingly.  Now ICANN has two choices, sit
on those now deflated investments and HOPE that they eventually
will show a profit and don't sink further ( which is more likely ), or
stop the bleeding, and take their losses now, before they will likely
be even greater losses.

  Secondly, no Non-Profit Corp. should be making investments in
securities that don't have a guarenteed return of dividend, such as
government Bonds, ect.  Unsing public funds, which is what ICANN
funds essentially are, should never be invested in securities of any sort
that have any down-side potential.

Debbie Garside wrote:

> Gentlemen
>
> Shall we keep this in perspective!  In case you haven't noticed, there seems
> to be a slight recession going on out there - or more to the point a
> FINANCIAL CRISIS!
>
> It is quite usual for large organizations to invest their reserves with a
> view to creating even bigger reserves.  As we all know... what goes up can
> come down.  Nevertheless, if ICANN sit on their investments they will
> undoubtedly go up again in the (I hope) not too distant future.
>
> Let's face it, how many of you would be shouting at ICANN if they were sat
> on $25 Million in there current account with only the prospect of losing it
> when said bank goes to the wall!  Safer to spread it around a little
> methinks.
>
> Best regards
>
> Debbie
>
> > -----Original Message-----
> > From: owner-ga@xxxxxxxxxxxxxx
> > [mailto:owner-ga@xxxxxxxxxxxxxx] On Behalf Of Jeffrey A. Williams
> > Sent: 02 February 2009 10:44
> > To: George Kirikos; icann board; ICANN Policy staff; DOC/NTIA
> > ICANN Rep; twomey@xxxxxxxxx; Peter Dengate Thrush
> > Cc: ga@xxxxxxxxxxxxxx; ICANN Admin supp. Manager Karen
> > Lettner; ICANN Dan Halloran; ICANN Kim Davies; icann legal;
> > ICANN Marc Salvatierra; ICANN Marilyn Vernon; GAC Rep
> > Subject: Re: [ga] ICANN loses $4.6 mil
> >
> >
> > George and all,
> >
> >   Thanks George for the links and the info, although I had
> > seen the ICANN link, but not the circle ID link yet.  Well done!
> >
> >   I as an investor knew about Bernie Madoff way back in 2001,
> > as I recall, and yes it appears that ICANN is in bit of a
> > different way following the same path.  Indeed as long as it
> > really isn't their money, and additionally that ICANN is
> > supposedly a non-profit Corp. their not getting the fiscal
> > scrutiny that appears necessary.
> > No oversight, or insufficient oversight breeds this sort of
> > behavior more often than not unfortunately.  >:(
> >
> > George Kirikos wrote:
> >
> > > Hello,
> > >
> > > --- "Jeffrey A. Williams" <jwkckid1@xxxxxxxxxxxxx> wrote:
> > > > gross incompetence and is even more emphasized by the
> > fact that they
> > > > allowed those investments to go down so far before stopping the
> > > > bleeding!  >:(  Purely foolish and demonstrating poor judgment as
> > > > well as irresponsible behavior.
> > >
> > > There's no evidence that they've stopped the bleeding. Here's the
> > > investment policy:
> > >
> > >
> > http://www.icann.org/en/financials/icann-investment-policy-nov2007.htm
> > >
> > > "The Board of Directors of ICANN shall direct the ICANN Investment
> > > Policy"
> > >
> > > "ICANN's CFO, with the assistance of ICANN staff, shall oversee the
> > > administration of the Investment Policy"
> > >
> > > Of course, look for no one to take responsibility, no one
> > to be fired.
> > > No budgets will be cut, like other organizations who've experienced
> > > losses on their investments (e.g. folks invested with
> > Bernie Madoff).
> > > Look for bonuses to be paid out for "superior performance."
> > >
> > > ICANN pays its staff like a for-profit company:
> > >
> > >
> > http://www.circleid.com/posts/20090105_icann_for_profit_companies_comp
> > > arables/
> > >
> > > What would a for-profit company do, if they lost $4.6
> > million in risky
> > > investments? At ICANN, perhaps they'll roll the dice again,
> > and double
> > > down.....it's not like it's their own money at stake when they lose
> > > (but they'll take credit for any gains, that you can be
> > assured of!).
> > >
> > > Sincerely,
> > >
> > > George Kirikos
> > > http://www.leap.com/
> >

Regards,

Spokesman for INEGroup LLA. - (Over 284k members/stakeholders strong!)
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liability depends upon whether B is less than L multiplied by
P: i.e., whether B is less than PL."
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