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House Bank Scandal

 
US Government Guide: House Bank Scandal, 1992
 

In 1992, angry about stalemated government, soaring deficits, and economic recession, the public focused its attention on check bouncing in the House of Representatives bank as a symbol of government perks, or special privileges. For 150 years the House sergeant at arms had operated a bank in the Capitol, where members could write checks based on their deposited salaries. A General Accounting Office (GAO) investigation revealed that many representatives had written checks with insufficient funds in their accounts to cover those checks, but the bank had taken no action to suspend or penalize those who bounced checks. Extensive media coverage caused the House to abolish the bank and reveal the names of more than 300 members who had bounced checks. An unusually large number of representatives chose not to run for reelection, and several other check bouncers were defeated. The bank scandal spurred the House to establish the position of director of nonlegislative services, who would serve as a general manager of financial and other administrative activities.

See also Director of non-legislative services; Perks; Scandals, congressional

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US Government Guide. The Oxford Guide to the United States Government. Copyright © 1993, 1994, 1998, 2001, 2002 by John J. Patrick, Richard M. Pious, Donald M. Ritchie. All rights reserved.  Read more