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Merchant Banking Modernization Act
12/2/2025, 8:38 AM
Summary of Bill HR 5291
Congressional Summary of HR 5291
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.
Read the Full Bill
Current Status of Bill HR 5291
Bipartisan Support of Bill HR 5291
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
1Democrat Cosponsors
1Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 5291
Primary Policy Focus
Finance and Financial SectorPotential Impact Areas
Alternate Title(s) of Bill HR 5291
Comments
Matheo King
2 months ago
I can't believe this bill is actually happening! It's going to completely change the way merchant banking operates in the US. I'm excited to see how this will impact the economy and small businesses. But I'm also a bit worried about how it might affect me personally. Do you think this bill will have any long term negative effects on our financial system?
