Fact check: Did Evan Bayh cash in after voting for Wall Street bailouts?
October 30, 2016
By Cory Eucalitto
Democrat Evan Bayh is running against Republican Todd Young to represent Indiana in the United States Senate. Bayh previously served in the Senate from 1999 to 2011.[1]In an ad released by the National Republican Senatorial Committee on October 11, the group claims:
“After voting for the Wall Street bailout, Evan Bayh left the Senate. Months later, he cashed in. Joining the board of a bank that got billions from Bayh’s bailout, taking a million dollar cut for himself.”[2]
Did Evan Bayh vote for a Wall Street bailout, and months later join the board of a bank that received billions from that bailout? Did he earn $1 million himself? Ballotpedia examined the evidence and concludes "yes."
Background
Bayh represented Indiana in the U.S. Senate from 1999 to 2011, after serving as the state’s governor and secretary of state.[1] His opponent, Todd Young, currently represents Indiana's 9th Congressional District in the U.S. House.[3]
The auto and financial industry bailouts related to the 2008 financial crisis have been a prominent issue in the Senate race.[4]
When asked by the Indianapolis Star about Young’s claims, Bayh’s campaign insisted “there is no relationship between his legislative votes and his private sector work. Any offers of employment or board directorships came only after he left office.”[5]
Wall Street bailout
The ad’s first claim is that Bayh voted for “the Wall Street bailout.” It cites H.R. 1424, which authorized the Treasury to “(1) designate financial institutions as financial agents of the federal government; and (2) establish vehicles to purchase, hold, and sell troubled assets and issue obligations,” up to $700 billion.[6] Title I of the legislation established the Troubled Assets Relief Program, or TARP.[6]
The bill passed the Senate on October 1, 2008, and was subsequently signed into law on October 3, 2008.[6]
Senator Bayh voted “yea.”[7]
The vote passed the Senate 74-25, and the House 263-171, with bipartisan support in both chambers.[6]
The Treasury ultimately committed $51 billion to General Motors, $17.2 billion to Ally Financial (formerly GMAC), and $12.5 billion to Chrysler under TARP’s auto industry program.[8]
Private sector work
The ad goes on to claim that Bayh “cashed in,” just months after his retirement.
Bayh announced in February 2010 that he would not seek re-election to the Senate later that year.[9] He began at least six new private sector positions in 2011, as early as January. As of October 2016, Bayh still held positions with:
- Apollo Global Management, alternative investment management, New York. Joined January 2011.
- McGuire Woods, law firm, Richmond, VA. Joined January 2011.
- Marathon Petroleum Corporation, petroleum refining, marketing, and transportation, Findlay, OH. Joined January 2011.
- RLJ Lodging Trust, real estate investment, Bethesda, MD. Joined April 2011.
- Fifth Third Bancorp, banking, Cincinnati, OH. Joined June 2011.
- Berry Plastics, plastic packaging manufacturer, Evansville, IN. Joined October 2011.[10]
Bayh also served on the Board of Directors at McGraw Hill Education from May 2013 - October 2015.[10]
According to Bayh’s financial disclosure form, filed on October 9, 2016, he earned nearly $5.75 million from those six positions in the past year.[10]
Fifth Third Bank
Specifically, the ad claims he “joined the board of a bank that got billions” from bailouts, “taking a million dollar cut for himself.”
Fifth Third Bancorp in Cincinnati, Ohio named Bayh to its Board of Directors in June 2011.[11]
On December 31, 2008, Fifth Third Bancorp received $3.408 billion from the U.S. Treasury, as part of the Capital Purchase Program.[12]
The Treasury launched the Capital Purchase Program in 2008 “to stabilize the financial system by providing capital to viable financial institutions of all sizes throughout the nation.” Proponents believed that that financial institutions needed capital to absorb losses and restart the flow of credit. The program received $205 billion of total TARP funds.[13]
According to the company’s SEC filings, Fifth Third Bancorp paid Bayh $944,937 in total compensation between 2011 and 2015. Roughly $419,000 was in stock awards.[14][15][16][17][18]
Conclusion
A recent NRSC ad claims:
“After voting for the Wall Street bailout, Evan Bayh left the Senate. Months later, he cashed in. Joining the board of a bank that got billions from Bayh’s bailout, taking a million dollar cut for himself.”[2]
Did Evan Bayh vote for a Wall Street bailout, and months later join the board of a bank that received billions from that bailout? Did he earn $1 million himself?
Yes. Evan Bayh voted in favor of H.R. 1424 authorizing the Troubled Asset Relief Program. Within one year of leaving the Senate, Bayh took at least six private sector positions. One was on the board of Fifth Third Bancorp, which received $3.048 billion from the U.S. Treasury as part of TARP. Fifth Third Bancorp paid Bayh $944,937 between 2011 and 2015.
See also
Launched in October 2015 and active through October 2018, Fact Check by Ballotpedia examined claims made by elected officials, political appointees, and political candidates at the federal, state, and local levels. We evaluated claims made by politicians of all backgrounds and affiliations, subjecting them to the same objective and neutral examination process. As of 2025, Ballotpedia staff periodically review these articles to revaluate and reaffirm our conclusions. Please email us with questions, comments, or concerns about these articles. To learn more about fact-checking, click here.
Sources and Notes
- ↑ 1.0 1.1 ‘’Ballotpedia.org, “Evan Bayh,” accessed October 28, 2016
- ↑ 2.0 2.1 National Republican Senatorial Committee, “NRSC Launches New Indiana TV Ad: ‘Bailout’,” October 11, 2016
- ↑ Ballotpedia.org, “Todd Young,” accessed October 28, 2016
- ↑ Indianapolis Star, “Auto and financial bailouts emerge as key issue in Bayh-Young race,” September 8, 2016
- ↑ Indianapolis Star, “Evan Bayh’s board seats made him millions after Senate,” August 15, 2016
- ↑ 6.0 6.1 6.2 6.3 Congress.gov, "H.R. 1424 - 110th Congress (2007-2008)," accessed October 26, 2016
- ↑ Senate.gov, "U.S. Senate Roll Call Votes 110th Congress - 2nd Session, On Passage of the Bill (H.R. 1424 As Amended),” accessed October 26, 2016
- ↑ Treasury.gov, "TARP Programs, Automotive Programs, Overview," accessed October 28, 2016
- ↑ CNN, "Bayh won’t seek Senate re-election," February 16, 2010
- ↑ 10.0 10.1 10.2 Senate.gov, "Candidate Report, Mr. Evan Bayh, Filed 10/09/2016,” accessed October 26, 2016
- ↑ Fifth Third Bank, "Fifth Third Appoints B. Evan Bayh to Bancorp Board of Directors," June 21, 2011
- ↑ Treasury.gov, "Capital Purchase Program: Contracts, Fifth Third Bancorp," accessed October 27, 2016
- ↑ Treasury.gov, "Capital Purchase Program," accessed October 27, 2016
- ↑ SEC.gov, "Schedule 14A Proxy Statement, Fifth Third Bancorp," March 8, 2012
- ↑ SEC.gov, "Schedule 14A Proxy Statement, Fifth Third Bancorp," March 7, 2013
- ↑ SEC.gov, "Schedule 14A Proxy Statement, Fifth Third Bancorp," March 6, 2014
- ↑ SEC.gov, "Schedule 14A Proxy Statement, Fifth Third Bancorp," March 5, 2015
- ↑ SEC.gov, "Schedule 14A Proxy Statement, Fifth Third Bancorp," March 10, 2016
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