Merchant Banking Modernization Act
Click any stage to learn more about the legislative process.
Topic: Finance and Financial Sector
Sponsor: Rep. Williams, Roger [R-TX-25] (R) - TX
Summary
This bill requires financial holding companies to be allowed to hold merchant banking investments for a minimum of 15 years.
Currently, financial holding companies are generally prohibited from holding interests in nonfinancial companies, however, there are statutory exemptions for merchant banking activities—financial services for private commercial entities. As a result of these financial services, the financial holding company may gain equity in these private commercial entities through portfolio holdings. Under current regulations, these holdings are subject to certain limitations, including a holding limit of 10 years, with the option of extending the period subject to review by the Federal Reserve Board.
Legislative Subjects
Bank accounts, deposits, capital; Banking and financial institutions regulation; Business investment and capital; Finance and Financial Sector
Latest Action
Placed on the Union Calendar, Calendar No. 320.
2025-11-04
Ask about this bill
Ask questions about this bill. The AI can look up referenced laws and statutes to provide context.
What existing laws does this bill amend?
What are the main provisions of this bill?
Who would be affected by this legislation?