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Banks Allowed to Hold Merchant Banking Investments for Up to 15 Years.

This law extends the time period during which large financial institutions (bank holding companies) can maintain equity stakes in non-banking companies (merchant banking investments). Instead of the previous shorter limit, banks will now be permitted to hold these investments for at least 15 years. This change grants banks greater flexibility in managing long-term investments, potentially affecting capital availability for businesses.
Key points
The minimum holding period for merchant banking investments by bank holding companies is extended to 15 years.
The new 15-year holding period also applies retroactively to existing investments, calculated from the initial investment date.
The goal is to modernize regulations and increase banks' flexibility in long-term corporate financing.
article Official text account_balance Process page
Placed on Calendar
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_5291
Sponsor: Rep. Williams, Roger [R-TX-25]
Process start date: 2025-09-10
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Merchant Banking Modernization Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5291.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-09-10.

What are the main provisions?

Key points include:

  • The minimum holding period for merchant banking investments by bank holding companies is extended to 15 years.
  • The new 15-year holding period also applies retroactively to existing investments, calculated from the initial investment date.
  • The goal is to modernize regulations and increase banks' flexibility in long-term corporate financing.
What is the specific legal status?

The current status is Placed on Calendar.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Williams, Roger [R-TX-25].

What is the latest detailed status?

The latest detailed status is: Placed on the Union Calendar, Calendar No. 320.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Economy