Congress: Life Among the Ruins
In the wake of the House Bank scandal, the bad news got worse-and real work came to a halt
What the bank scandal vividly shows is that many members live perilously close to the financial brink, despite their $129,500 salaries. Wilson admits to a lifestyle "marginally" beyond his means--and sparse savings. Many of his colleagues, he confides, are in the same boat. Not surprisingly, a U.S. News study of the 24 worst check abusers reveals an overextended group who, in addition to holding home mortgages, have borrowed thousands of dollars from banks, friends and the House credit union.
New York's Robert Mrazek, the second-worst House-bank offender with 972 bad checks, is a case in point--and his Senate bid was in jeopardy last week. Mrazek has mortgage and personal loans of $530,000 to $1.2 million and properties that include a Maine retreat, a 134-acre Virginia farm and a share of a Bahamian island--all on an average annual income since 1988 of between $140,000 and $185,000. A Florida real-estate agent says he is about to foreclose on the island partnership, which he says hasn't made a payment since March 1991. A spokesman says Mrazek sold his share and that he "is not in arrears" on any mortgage.
Voter rage--and fear of political mortality--have left members scurrying. Speaker Foley's assurances that reform is at hand hardly mollify Democrats afraid even of talking anymore about perks. And Republicans are just as uncertain about how to proceed. Appointment of Justice's special counsel is bound to help Gingrich's slash-and-burn politics by dragging the crisis on for months. It might also produce late revelations that would be a most unwelcome October Surprise for incumbents.
The Hill's easy-money culture
The array of perks for House members makes life very convenient, allowing many to live better than their salaries would otherwise permit. Some, however, use the perks to live close to the financial edge.
Floating checks. The House bank and perhaps the House post office cashed checks and then held them--allowing members to give themselves free loans.
Quick credit. Members and staffers make frequent use of the House's federal credit union, which offers loans of up to $15,000 with only a signature required as "collateral."
Juggling funds. Investigators are looking into allegations that some members floated personal checks from the House bank to cover emergency campaign expenses.
Postage fakery. Investigators are checking to see whether members and postal workers cashed "official mail" postage vouchers instead of using them to buy stamps.
Coverup. A grand jury is listening to taped conversations to see whether Democratic leaders recently thwarted a budding investigation by Capitol Police into the post-office scams.
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