If the Fed doesn't know, who does?

The Inspector General of the Federal Reserve in this video (HT Taxmanblog) acknowledges that trillions of dollars of our money cannot be accounted for. The five-minute video is taken from a Congressional hearing on May 6 where Federal Reserve Inspector General Elizabeth Coleman is questioned by Congressman Alan Grayson of Florida about huge amounts of money for which the Federal Reserve is responsible. Really, this is quite alarming.



The original Bloomberg reportreferred to in the video.

I used to wonder why Congress called upon Hollywood stars to testify on weighty problems--like oceans and apples. Now I know. They are apparently better prepared as concerned actors than the OIG of the Fed whose task is described on their website but who doesn‘t seem to know or do anything:

Ms. Coleman joined the Board's OIG in 1989 as a senior auditor. She was promoted to program manager in 1999 and to senior program manager in 2001. She was appointed to the official staff in 2004, as the Assistant Inspector General for Communications and Quality Assurance. Over the last eight years, Ms. Coleman has worked closely with the Executive Council on Integrity and Efficiency, a professional organization of about thirty statutory Inspectors General who are appointed by their agency heads in certain designated federal entities, including the Board.

Prior to joining the Board's staff, she was employed by the Government Accountability Office. Ms. Coleman has a BBA from James Madison University and is a graduate of the Stonier Graduate School of Banking, Georgetown University. She also attended the Federal Reserve System's Trailblazers Leadership Conference. Ms. Coleman is a Certified Information Systems Auditor.

The OIG is tasked with the responsibility to prevent and detect fraud, waste, and abuse, and to promote economy and efficiency in the programs and operations of the Board, keeping the Chairman and Congress fully and currently informed of problems.

An Inspector General may be removed from office by the President, and must communicate the reasons for any such removal to both Houses of Congress, as outlined in Section 3(b) of the Inspector General Act of 1978.

If you ever need to draft a mission statement, be sure to read theirs. But only after you watch her testimony. It's good for a laugh.