YU's Richard Joel Wrote Me (and I Replied)

This form letter came into my email box as a YU graduate (excerpted):

...Bernard Madoff is no longer associated with our institution in any way. The University had no investments directly with Madoff. Last Thursday night, we were informed by Ascot Partners, a vehicle in which we had invested a small part of our endowment funds for 15 years, that substantially all its assets are invested with Madoff. The Ascot fund was managed by J. Ezra Merkin who has served as a University trustee and chairman of the investment committee. Mr. Merkin has resigned from all University positions. (see here)

In the most recent statement from Ascot, Yeshiva's investment was valued at about $110 million, which represents about 8% of our endowment. While these facts are disappointing, we need to remain focused on the larger picture...

Let me be clear regarding our financial position:...we are in the same or better position as many universities...Much more critical to our future health is the continued level of financial support from the YU family, philanthropists, and friends. So, while we are in a healthy and strong position to move forward, we must use the moment to address all concerns that this situation has illuminated.

In light of recent developments, we have decided to examine our existing conflicts policies and procedures, and governance structures...to ensure that our policies, procedures and structure reflect not only best practices, but the gold standard -- the standard to which we aspire for all our endeavors. We will be working closely with our advisors over the coming weeks and months and I'm confident that we'll emerge stronger than ever.

I must add a more personal thought. We all should use these times to reflect on our blessings but also to reflect on our responsibilities. We should constantly be communally introspective and focus on advancing our ideals. The times are appropriate for us to focus on our core values, to practice and refine them and to share them with the world. We can and should always advance. Yeshiva University is committed to engaging in that conversation with other people of good will. I thank you for your interest, commitment and support.

Sincerely,

Richard M. Joel
President, Yeshiva University

My reply was curt:

In Israel, to invest money in a fund that is owned or managed by a person who is a trustee and chairman of a University committee would be considered criminal.

Yisrael Medad