Nightline (ABC) - 1992-03-09 - 1 of 2
Channel: malgent
Transcript
Language: English (original, YouTube automatic captions)
[0:00] pack pickup tonight. Human Touch is the
[0:02] title cut to one of two Springsteen
[0:04] albums. While the video's out, the
[0:06] albums won't be at local record stores
[0:08] until March 31st.
[0:13] And that's tonight's entertainment
[0:15] report.
[0:16] >> And it's that good. Let's take a last
[0:17] look at the weather.
[0:18] >> All right, let's take a look at it.
[0:19] Looks like lots of sunshine tomorrow.
[0:21] We'll hit about 67 for a high
[0:23] temperature. Thanks, Jim.
[0:24] >> And that's our news, everybody. Thanks
[0:25] for being with us.
[0:40] I've got the power.
[0:45] The House of Representatives, where
[0:47] legislators are busy passing laws and
[0:49] spending billions of dollars of
[0:51] taxpayers money. But when it comes to
[0:53] spending their own money, members of
[0:55] Congress used to have a great deal.
[0:57] their own bank, where for years many
[0:59] wrote checks for a lot more money than
[1:01] they had in their accounts. More than
[1:03] 300 House members wrote bad checks
[1:05] totaling millions of dollars. And now
[1:08] some congressmen are trying to keep you
[1:10] from finding out who the check bouncers
[1:12] are.
[1:21] This is ABC News Night Line,
[1:24] substituting for Ted Capid, reporting
[1:26] from Washington, Chris Wallace.
[1:29] >> Just when you think Congress's standing
[1:31] with the American people couldn't get
[1:32] much lower, it always does. Whether it's
[1:35] late night pay raises or parking tickets
[1:37] that are fixed, free health clubs, or $5
[1:40] haircuts, the politicians on Capitol
[1:42] Hill keep acting as if they're different
[1:44] from all the rest of us. And the voters
[1:47] back home keep getting angrier. Now,
[1:49] another scandal is reaching its climax.
[1:52] Over the past 3 years, congressmen have
[1:54] written almost 20,000 bad checks,
[1:56] overdrawing their accounts in the House
[1:58] Bank. But those checks didn't bounce.
[2:01] They weren't returned for insufficient
[2:02] funds as ours would have been. No, the
[2:05] House Bank paid the money as a kind of
[2:07] interest free loan until the congressman
[2:09] made good on their accounts. To add to
[2:12] the controversy, this week the House is
[2:14] expected to approve an ethics committee
[2:16] plan to name only the 24 worst
[2:18] offenders. More than 300 other current
[2:21] and former members of Congress would not
[2:23] be identified. According to some
[2:25] Republicans, it's a cover up. As Night's
[2:28] Jackie Jud reports now, the mood on
[2:30] Capitol Hill seems to be to protect the
[2:32] members from the people who elected
[2:34] them. Imagine writing someone a bad
[2:37] check and doing it time after time after
[2:40] time and getting away with it. No
[2:42] penalties, no threats of closing your
[2:44] account. That's exactly what many House
[2:47] members did in the 3 years before their
[2:50] private bank closed last October amid
[2:52] controversy and voter anger.
[2:55] >> I think it's reprehensible. These are
[2:56] the our elected officials who we have
[2:59] chosen to represent us and do for us
[3:02] what we as individuals can't do and they
[3:04] are going ahead and doing just the
[3:05] things that they're telling us we
[3:06] shouldn't do. The banking scandal was
[3:09] the last straw for a lot of people who
[3:11] already were disgusted with Congress for
[3:13] its middle of the night pay raise, for
[3:15] its perks of fixed parking tickets and
[3:17] free lunches at congressional
[3:19] restaurants.
[3:20] What we have is a system here that is
[3:23] decayed and corrupt and we need to do
[3:25] something about it.
[3:26] >> What had the congressman so upset was a
[3:28] report by a house ethics subcommittee.
[3:30] It had spent the past 5 months
[3:32] investigating the bank accounts of House
[3:34] members. Among its findings, 296 current
[3:39] House members had bounced checks. 200
[3:42] overdrew more than their next paycheck
[3:43] would cover and 24 current and former
[3:46] members overdrew their monthly salaries
[3:49] at least eight times since 1988.
[3:52] Night Line has been told by a committee
[3:54] member that the worst abuser wrote about
[3:56] 1,000 bad checks for some $500,000.
[4:00] Congressman Matthew McHugh led the House
[4:02] probe. It's a case of members uh not
[4:05] taking care of their own personal uh
[4:08] checking accounts in any sensible way.
[4:11] Uh I don't know how members actually
[4:14] could sleep at night given the disarray
[4:16] in which their checking accounts in some
[4:18] cases were. Still, the House Ethics
[4:20] Committee seems intent on furthering
[4:22] Congress's image as an arrogant
[4:24] privileged class. It voted to disclose
[4:27] only the names of the very worst
[4:28] abusers, those two dozen who went over
[4:31] their limit at least eight times. McHugh
[4:33] says to make a broader accounting would
[4:35] violate a member's right to privacy. And
[4:38] besides, he says the House bank wasn't
[4:40] really a bank at all.
[4:41] >> No, I I think it is important that we
[4:43] not uh retroactively apply standards on
[4:46] people because there's political uh
[4:49] heat. Uh this was a bank in which only
[4:52] the money of members of the house was
[4:54] involved. uh only their salaries and
[4:56] other deposits were in this bank. It was
[4:58] a bank which uh tolerated for more than
[5:01] 40 years overdrafts of accounts so long
[5:04] as those overdrafts did not result in a
[5:07] deficiency which exceeded the next
[5:09] month's net pay deposit. And uh there
[5:11] was never any money lost in this bank.
[5:14] It is true that this is not a bank in
[5:16] the classical sense of of the word. But
[5:18] that very point I think is what sticks
[5:21] in the craw of some of our constituents.
[5:23] This is yet another special privilege
[5:25] for members of Congress. Well, it really
[5:27] wasn't all that special. It was a place
[5:29] to to to deposit your monthly paycheck
[5:31] and and to be able to write checks on
[5:33] it.
[5:35] >> The resolution that was approved by the
[5:37] ethics committee is to disclose just the
[5:39] 19 people.
[5:40] >> Right.
[5:40] >> The newspaper roll call broke the
[5:42] checking story last year. Its editor
[5:45] calls the committee's solution of
[5:47] limited disclosure a poor attempt at
[5:49] damage control. Part of the idea, and
[5:52] there's no doubt in my mind, is to find
[5:55] some scapegoat, sort of throw them over
[5:57] the side, and then hope that nobody's
[5:59] going to get upset about anybody else.
[6:01] Well, you know, I would almost go along
[6:04] with this idea, sort of sacrificing some
[6:06] people who probably shouldn't be
[6:07] sacrificed if it really helped the
[6:09] institution. I mean, I could buy that
[6:11] idea, but it's not going to work anyway.
[6:14] A group of freshman Republicans smelling
[6:16] a chance to embarrass the Democratic
[6:18] leadership which poo pooed the scandal
[6:19] when it broke is demanding full
[6:22] disclosure. They say too many people
[6:24] will get off the hook using the
[6:26] committee's narrow definition of abuse.
[6:28] >> Uh the majority of the committee used an
[6:31] arbitrary standard which resulted in 24
[6:34] people being designated as having abused
[6:37] their banking privileges. Uh people who
[6:40] escaped that designation wrote over 850
[6:45] bad checks totaling over $150,000.
[6:49] There were other examples of members
[6:51] writing 500700 bad checks over $100,000.
[6:55] And I can't defend that conduct as not
[6:59] being abusive of the banking privileges.
[7:01] If this institution uh is going to be
[7:04] relevant in American society, we've got
[7:06] to be able to level with the people who
[7:08] sent us here and show them that we're
[7:10] willing to stand up uh and and behave as
[7:13] they as they expect us to behave.
[7:15] >> A bitter fight is expected this week on
[7:17] the House floor about how many members
[7:19] should be exposed and in what manner.
[7:21] Glassman says he's never seen elected
[7:23] officials so scared.
[7:25] >> It's indefensible from a political point
[7:27] of view. It's very You can defend the
[7:29] pay raise. That's not hard. You know,
[7:30] you can get out there like Rostenowski
[7:32] said and said, you know, damn it, I'm
[7:34] worth $125,000. If you don't think I'm
[7:37] worth that, then vote me out of office.
[7:39] But you can't get up and say, damn it, I
[7:42] bounced 20 checks. So what? I'm a member
[7:44] of Congress. I mean, you can't say that.
[7:45] What What are you going to say?
[7:47] >> One way or another, many incumbents will
[7:49] have to stand the heat this fall. In an
[7:51] election year where voters have made
[7:53] clear that they won't accept politics as
[7:55] usual, the House is faced with the
[7:57] choice of naming names or appearing to
[8:00] favor a coverup. This is Jackie Jud for
[8:02] Night Line in Washington.
[8:05] >> When we come back, we'll talk with the
[8:06] acting chairman of the House Ethics
[8:08] Committee, Congressman Matthew Matthew
[8:10] Mchugh, with former Senator William
[8:12] Proxm, a longtime watchdog of government
[8:14] spending who calls the check bouncing
[8:17] scandal a disgrace. and Boston Globe
[8:19] columnist Mike Barnacle who says
[8:21] Congress is just a pack of dead beats.
[8:25] >> This is ABC News Night Line brought to
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[10:03] Not every bird you see at your grocery
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[10:08] Some are out of state birds which come
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[10:28] Without it, you could be getting a
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[10:34] Five men want to live in this house.
[10:36] There's only room for one. Watch Peter
[10:39] Jennings, David Brinkley, and the people
[10:41] of ABC News Super Tuesday.
[10:46] >> Joining us now from our Washington
[10:47] studios are Congressman Matthew McHugh,
[10:50] a Democrat from New York, who is the
[10:51] acting chairman of the House Ethics
[10:53] Committee, and former Senator William
[10:55] Proxm, who spent much of three decades
[10:57] in the Senate spotlighting government
[10:59] waste. And from our Boston bureau,
[11:01] Boston Globe columnist Mike Mike
[11:03] Barnacle. Congressman, let me start with
[11:05] you if I can. Speaker Foley predicted
[11:07] today that uh when the House votes this
[11:10] week, it will vote to approve the ethics
[11:12] committee plan to name only the 24 worst
[11:15] offenders. I have to say I still don't
[11:17] get it. Why is it that voters aren't
[11:20] entitled to know how many bad checks
[11:22] their congressman wrote and for how
[11:24] much?
[11:24] >> Well, first Chris, let me say I'm not
[11:26] here to defend these banking practices,
[11:28] and I personally did not write any bad
[11:30] checks. But as chairman of the ethics
[11:32] committee for this investigation, uh I
[11:34] was bound to follow the house resolution
[11:37] which was passed 390 to8 last October.
[11:40] And that resolution directed us on the
[11:42] ethics committee uh to determine who
[11:45] abused their banking privileges by
[11:47] repeatedly and routinely overdrafting
[11:49] their accounts by a significant amount.
[11:51] Now we have faithfully tried to carry
[11:53] out that charge. uh if the House wants
[11:56] to change its mind, if it wants to
[11:58] engage in what is called full
[12:00] disclosure, uh that's perfectly uh
[12:02] acceptable to me. Uh but that was not
[12:04] the direction that we had in terms of uh
[12:07] >> Let me let me pick you up on that though
[12:09] because you will have a vote along with
[12:10] all the other congressmen sometime later
[12:12] this week. Will you vote for or against
[12:15] full disclosure?
[12:16] >> I will vote against full disclosure
[12:17] because it's not equal disclosure. First
[12:20] of all, we do not have complete
[12:22] information on many of the accounts uh
[12:24] on the list of 355. Uh many of those
[12:27] accounts only had a few bad checks. Uh
[12:30] 133 members had five or fewer checks. Uh
[12:33] these are private transactions. If a
[12:35] member of Congress did nothing wrong, if
[12:37] he didn't abuse his banking privileges,
[12:39] and most people would agree five checks
[12:41] over 39 months is not abuse, uh then why
[12:44] should these private transactions be
[12:46] spread out on the public record? It
[12:48] seems to be that we're treating
[12:50] congressmen different than everybody
[12:51] else.
[12:51] >> Well, let me ask uh they first of all, I
[12:53] suppose one of the answers to that would
[12:54] be that congressmen are different from
[12:56] everyone else. But let me ask Senator
[12:57] Proxm. Do you think that members of
[13:00] Congress enjoy some right to privacy
[13:02] here? Do you think there should be
[13:03] either this partial disclosure of only
[13:05] the the 24 worst offenders or do you
[13:07] think that uh we should find out about
[13:09] every congressman?
[13:10] >> Well, there's an easy answer. The easy
[13:11] answer is that you ought to have full
[13:12] disclosure. If you if you write one bad
[13:15] check, it should be known. You can
[13:16] explain that to your constituents. If
[13:18] you can't, you probably aren't aren't
[13:20] likely to be reelected anyway. So, I I
[13:23] it seems to me that the only answer that
[13:25] makes any sense at all is to have full
[13:27] disclosure. There are all kinds of ways
[13:29] in which you could have full disclosure.
[13:31] One thing, one way you could do it is
[13:33] simply to tell every write a letter to
[13:35] every single member of the House and who
[13:38] and and say whether he's clear, whether
[13:41] he's had a a check bounce or check 10
[13:44] checks bounce or 50 checks bounce. and
[13:46] then let the local newspaper, the local
[13:49] TV station, local radio station call him
[13:51] up, say, "Okay, Buster, what's your
[13:53] record? Let reveal it. You have it. And
[13:55] if if you don't have it, then it seems
[13:57] to me that that his opponent would have
[14:00] every reason in the world to raise the
[14:03] Dickens about it."
[14:03] >> Well, they'll probably defeat him.
[14:04] >> Well, let's bring in Mike Barnacle,
[14:06] who's one of those pesky reporters who'd
[14:08] be calling up and calling a congressman
[14:09] buster. Uh Mike, do you think that with
[14:12] this election coming up in a few months,
[14:14] do you think that the House can get away
[14:16] with just naming 24 or do you think that
[14:18] all the names are going to come out?
[14:20] >> Oh, well, look, Buster. Uh, you know, I
[14:23] think I think probably all the names
[14:24] will eventually come out. The problem is
[14:27] is exactly as Bill Proxmire just
[14:29] explained it. I mean, if a congressman
[14:32] is popular and substantial in his own
[14:34] district, he or she can explain four or
[14:36] five bounce checks. I mean, I have great
[14:38] sympathy for anyone who kites a check,
[14:40] having stood in the dock of Boston
[14:42] Municipal Court several years ago before
[14:44] I made any money and having to answer to
[14:46] a charge of larseny over $100, which is
[14:49] what they call a bounce check in this
[14:50] jurisdiction is what they would call it
[14:52] in Washington. You've got to get it out
[14:55] there or else people are going to
[14:56] mistake the House of Representatives for
[14:57] the local House of Correction.
[15:00] >> Congressman McHugh, um let me uh clear
[15:02] up a couple of details in this scandal
[15:04] if I might. Uh, could spouses of members
[15:07] of Congress write checks on their
[15:08] accounts?
[15:09] >> Yes, they could, Chris. A member of
[15:11] Congress could authorize a spouse or a
[15:13] staff member to sign checks.
[15:14] >> And in fact, did some of the spouses of
[15:17] members of Congress write these bad
[15:19] checks that we're talking about here?
[15:20] >> Yes, I'm sure they did because a number
[15:22] of members have told me that was the
[15:24] case.
[15:24] >> Let me ask you another question. There
[15:26] has been some some issue as to whether
[15:28] or not these bad checks since they were
[15:31] paid by the House bank whether they
[15:33] constitute interestf free loans and
[15:35] thereby income for which the congressman
[15:37] would be liable. What did you find on
[15:39] that?
[15:39] >> We asked our legal counsel to uh
[15:42] research that question and an overdraft
[15:44] is technically a loan. uh but he uh told
[15:48] us that these overdrafts do not
[15:50] represent the kind of interest foregone
[15:52] situations which would require reporting
[15:55] on on income taxes. And let me quickly
[15:57] add that uh no interest was paid to
[16:00] members of Congress that had surpluses
[16:02] in their accounts. Uh in my case, for
[16:04] example, I I had surpluses and we never
[16:06] got paid interest, which is what the
[16:08] average constituent would be paid uh at
[16:10] their local bank.
[16:11] >> Chris, let me let me let me just
[16:12] interrupt to put this into a broader
[16:14] perspective. The fact is that members of
[16:15] Congress now get $129,500
[16:18] a year. That's a tremendous pay. You
[16:21] know, not more than 1 or 2% of the
[16:23] American people get anything like that.
[16:24] It's far far too big. You also have have
[16:28] a doctor uh and and free prescription
[16:31] drugs. You have all kinds of other
[16:33] advantages, including having a
[16:35] newsletter that costs over a million
[16:36] dollars a year. The fact is that the
[16:38] taxpayers pays $3.5 million for every
[16:41] single member of Congress, including his
[16:44] salary.
[16:44] >> Yeah.
[16:45] >> Now, that is just too much. And under
[16:46] those circumstances, it seems to me that
[16:49] the least that members of Congress could
[16:51] do is is to is to reveal whether or not
[16:54] they they bounce checks or not. And
[16:56] anybody with $129,500
[16:58] year doesn't have to bounce a check and
[17:00] shouldn't ought to be ashamed if he
[17:01] does.
[17:02] >> Let me break in. Mike Barnacle, let me
[17:04] break in here just for a moment because
[17:05] we do have to take a pause. But when we
[17:07] return, I want to ask you all about the
[17:08] institution of Congress and what happens
[17:11] when so many voters start saying that it
[17:13] is out of touch. And we'll continue our
[17:16] discussion in a moment.
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