House banking scandal

The House banking scandal broke in early 1992, when it was revealed that the US House of Representatives allowed its members to overdraw their House checking accounts without the risk of being penalized by the House bank, which was actually a clearinghouse.

The scandal is sometimes called Rubbergate, a Watergate portmanteau with rubber, as in bounced, check. This is a misnomer, as House checks were honored through institutional overdraft protection, with its Sergeant at Arms ensuring payment without penalty.

It is also sometimes called the "check-kiting scandal."

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