Bank Scandal Spreads to Senate Races

The House bank scandal spilled over into California’s U.S. Senate races Thursday when one candidate, Rep. Barbara Boxer (D-Greenbrae), admitted writing 87 bad checks and another, Rep. William E. Dannemeyer (R-Fullerton), said he had 27 overdrafts.

The announcement was particularly painful for Boxer, who had refused in an interview to discuss her bank statements, saying she strongly believed in her right to privacy. She had planned to vote against the full disclosure of all House accounts, but changed her mind.

Boxer, who is running for the six-year Senate seat being vacated by Democrat Alan Cranston, said she changed her mind after counting the number of bad checks at her Washington apartment Thursday afternoon.

“I laid out the checks. Boy, I’ll tell you, it is a miserable feeling,” Boxer said. “I feel very terrible about this. I’m very embarrassed. . . . I have myself to blame.”

Dannemeyer admitted writing overdrafts totaling $6,553 over a 32-month period. He declined to return phone calls Thursday, but issued a statement urging his House colleagues to vote to fully disclose their own bank statements.

The two other House members vying for Senate seats, Rep. Tom Campbell (R-Palo Alto) and Rep. Mel Levine (D-Santa Monica), released documents indicating they had not written any bad checks.

“I think people are entitled to know the full story and make their judgments themselves,” Campbell said. “The credibility of the institution is at stake here.”

Campbell, Levine and Boxer each voted early today in favor of revealing the overdraft records of all lawmakers.

Campaigning in California, Dannemeyer was expected to miss the crucial votes over whether to release some or all of the controversial bank statements.

Levine, who has missed numerous votes in Congress while focusing on his Senate bid, boarded an airplane in Los Angeles at noon Thursday once he learned the debate had been rescheduled to begin late Thursday night.

“This is one vote he wouldn’t miss, come hell or high water,” said Levine spokeswoman Hope Warschaw. Boxer and Campbell were already in Washington for the vote.

So far, at least 10 California House members have admitted writing bad checks, including Rep. Duncan L. Hunter (R-Coronado), who said that in the last three years his account lacked funds to cover at least 160 checks.

Hunter was unrepentant this week, insisting that in effect he had paid for overdraft protection at the House bank by putting $147 per month from his paycheck in a scholarship fund for needy students.

Hunter said he averaged about three to five overdrafts a month at the House bank and had a similar overdraft rate for his personal account at the Bank of Coronado. He said he would never deal with a bank that does not protect against overdrafts.

“I won’t apologize for it,” Hunter said.

Others were not so willing to excuse the practice.

“This has the look and smell of a full-fledged scandal,” said California Lt. Gov. Leo T. McCarthy, a Democrat who is running against Boxer and Levine. “It’s a perfect example of why most Americans think Congress is out of touch.”

Dannemeyer, who is opposing Sen. John Seymour in the Republican primary for the two-year Senate seat, volunteered that he had written 27 bad checks over 11 separate months. He said he only learned of the overdrafts Wednesday after examining his own canceled checks from the House Bank, which has since been closed.

“Every regular American would have to pay a penalty for a check overdraft,” Dannemeyer said, adding that he had decided to assess himself a $15 fee per overdraft and that he had sent a check for $405 to the House.

“The American people have a right to know this information and that is why I believe it should be released,” Dannemeyer said. “All other House members should release the same information from their House bank accounts.”

Boxer, who declined to give the total value of the overdrafts she had written, also said she would pay a $15 per check fee to the House.

Earlier Thursday, Boxer had said she had no plans to reveal her bank statements. She said she intended to vote to disclose only the top 24 abusers in the House who were found by the Ethics Committee to have abused the bank.

Bank officials previously assured Boxer that she did not have a problem account, Boxer said. She added that her stand against the disclosure of lawmakers’ banking records was consistent with her positions on other privacy issues, including abortion rights.

Boxer said that not one California voter had inquired about the bank scandal during a string of seven appearances last weekend.

“I don’t think they are really interested,” Boxer said. “I think they are interested in real issues.”

But, after admitting to writing 87 bad checks over a 39-month period, she said she expected the overdrafts would hurt her Senate campaign.

“I think it is a negative for me,” Boxer said. “It is a wart. . . . I don’t think it’s devastating. No, when I think about some of the things politicians have been able to stand up to and win elections after, I think this pales by comparison.”

McCarthy said California voters “certainly care about the issue. I think what they expect is anyone who serves in Congress will speak up against each of these things.”

Levine said he did not issue any overdrafts in part because he did not use the House bank. Instead, he had his paycheck deposited in a private bank.

Other California members who have admitted writing bad checks are Rep. George E. Brown Jr. (D-Colton), Rep. Robert K. Dornan (R-Garden Grove), Rep. Elton Gallegly (R-Simi Valley), Rep. Richard H. Lehman (D-Sanger), Rep. Matthew G. Martinez (D-Monterey Park), Rep. Dana Rohrabacher (R-Long Beach) and Rep. Pete Stark (D-Oakland).

Other members could not be certain how many bad checks they may have written because of the chaotic way the bank operated, said Rep. Leon E. Panetta (D-Carmel Valley). Panetta said Thursday that he intends to release his bank statements once he receives them.

“Ultimately, it is going to be up to each member’s constituents to decide whether he or she abused the system,” Panetta said. “I trust the public to make that distinction, and they ought to have that opportunity.”