[At-Large] ICANN Keeps it Money in a Non-Interest Bearing Account!
carlton.samuels at gmail.com
Sat Nov 3 14:40:53 UTC 2012
Even with my admitted rudimentary knowledge of high finance, seems you're
making the case for new investment counselors to ICANN.
No, I won't give it for free, not this time!
Carlton A Samuels
*Strategy, Planning, Governance, Assessment & Turnaround*
On Fri, Nov 2, 2012 at 7:36 PM, John R. Levine <johnl at iecc.com> wrote:
> > This thing has got my goat.
> Actually, it sounds like ICANN has learned their lesson. A few years
> back, ICANN made an incredibly irresponsible decision to place $25 million
> of reserve funds in a broker managed stock market account, which became
> $20 million when the market burped. Oops. At the time ICANN's CFO
> refused to take any responsibility or to admit that they'd screwed up, or
> to explain why they'd needed $25 million of registrants' money for the
> reserve if, as he now claimed, $20M was enough.
> I hope we all agree that ICANN's primary reponsibility toward its reserves
> is to be sure that the money is there when it's needed. That means
> something with no credit risk, like US government treasury bills, which
> are currently yielding 0.16% for six month bills and 0.18% for twelve
> months. When you subtract off even the most modest broker fees, that
> rounds to zero, so I can't blame them for just putting it in a zero
> interest account on which they can draw as needed.
> What were you expecting them to do? Do you think it is possible to find
> suitable low-risk investments that pay significantly more?
> John Levine, johnl at iecc.com, Primary Perpetrator of "The Internet for
> Please consider the environment before reading this e-mail. http://jl.ly
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