Public exposure[edit]
In the early days of the scandal, when the media began reporting on the loose practices, Republican Minority Whip Newt Gingrich, along with seven freshman Republicans referred to as the Gang of Seven, or "The Young Turks," made the strategic decision to publicize the scandal in an attempt to sweep representatives with overdrawn accounts, most of whom were Democrats, out of power, although Gingrich himself had 22 overdrawn checks, one being a $9,463 check to the Internal Revenue Service.[6] Jim Nussle, one of the Gang of Seven, came to national attention when he made a speech from the well of the House while he wore a paper bag over his head to protest the "shameful" ethical behavior involved in the scandal.[7]
Gingrich pressured the Speaker of the House, Tom Foley, to ensure that the special counsel appointed to investigate the matter informed the voting public of the overdrafts and the identities of all of the representatives who were responsible.[8]
Aftermath[edit]
Anger at the House banking scandal led Congress to create the Joint Committee on the Organization of Congress, a special joint House-Senate tasked with recommending reforms to the Legislative Branch. Resolutions to create the Joint Committee were introduced in summer 1991, but they did not gain traction until after the scandal. Congress created the Joint Committee in August 1992.[9]
The scandal contributed to a perception of corruption and malfeasance and was a contributing factor to major changes in the House in which 77 Representatives resigned or were ousted by the 1994 elections.[10]