Plain English
GovGreed Synthesis · 2025-11-04
Merchant Banking Modernization Act 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.
Market Impact Map
Action Timeline
2025-11-04
Placed on the Union Calendar, Calendar No. 320.
2025-11-04
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-368.
2025-11-04
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-368.
2025-09-16
Ordered to be Reported (Amended) by the Yeas and Nays: 35 - 17.
2025-09-16
Committee Consideration and Mark-up Session Held
2025-09-10
Referred to the House Committee on Financial Services.
2025-09-10
Introduced in House
2025-09-10
Introduced in House
Full Bill Text
119 HR 5291 RH: Merchant Banking Modernization Act U.S. House of Representatives 2025-11-04 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IB Union Calendar No. 320 119th CONGRESS 1st Session H. R. 5291 [Report No. 119–368] IN THE HOUSE OF REPRESENTATIVES September 10, 2025 Mr. Williams of Texas introduced the following bill; which was referred to the Committee on Financial Services November 4, 2025 Additional sponsor: Mr. Gottheimer November 4, 2025 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on September 10, 2025 A BILL To amend the Bank Holding Company Act of 1956 to generally permit holding merchant banking investments of up to 15 years. 1. Short title This Act may be cited as the Merchant Banking Modernization Act . 2. Merchant banking investment holding period Section 4(k)(7)(A) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1843(k)(7)(A) ) is amended by inserting Under such regulations, the period of time generally permitted for holding merchant banking investments shall not be less than 15 years. For any merchant banking investment held on the date of enactment of the Merchant Banking Modernization Act , the holding period of time permitted shall not be less than 15 years from the initial date of the investment. after the period at the end. November 4, 2025 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
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