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H.R. 5291IntroducedFINANCE AND FINANCIAL SECTOR

Merchant Banking Modernization Act

Bank accounts, deposits, capital · Banking and financial institutions regulation · Business investment and capital
Sponsor
Rep. Williams, Roger [R-TX-25]
R · TX-25
Key facts
Introduced: Sep 10, 2025
Chamber: House
Cosponsors: 1
Congress: 119th
Latest action · Nov 4, 2025
Placed on the Union Calendar, Calendar No. 320.

Summary

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.

Summary by Congressional Research Service.

Timeline

  1. Nov 4, 2025
    Placed on the Union Calendar, Calendar No. 320.
  2. Nov 4, 2025
    Reported (Amended) by the Committee on Financial Services. H. Rept. 119-368.
  3. Nov 4, 2025
    Reported (Amended) by the Committee on Financial Services. H. Rept. 119-368.
  4. Sep 16, 2025
    Ordered to be Reported (Amended) by the Yeas and Nays: 35 - 17.
  5. Sep 16, 2025
    Committee Consideration and Mark-up Session Held
  6. Sep 10, 2025
    Referred to the House Committee on Financial Services.
  7. Sep 10, 2025
    Introduced in House
  8. Sep 10, 2025
    Introduced in House

Cosponsors

View official record on Congress.gov →