Merchant Banking Modernization Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill changes regulations regarding how financial holding companies can invest in private companies. It allows these companies to hold investments in private commercial entities for a minimum of 15 years, up from the current 10-year limit. The bill aims to modernize merchant banking activities and provide greater flexibility for financial holding companies to participate in these investments. This change is intended to streamline the process and potentially encourage more investment in private businesses.
Key provisions
- Allows financial holding companies to hold merchant banking investments for at least 15 years.
- Increases the holding period from the current 10-year limit.
- Applies to investments in private commercial entities.
- Specifies that existing investments held on the bill’s enactment date will have a 15-year holding period.
- Amends the Bank Holding Company Act of 1956.
Who is affected
- Financial Holding Companies
- Private Commercial Entities
- Investors in Private Companies
Notable changes
- Extends the permitted holding period for merchant banking investments.
- Eliminates the previous 10-year holding limit.
Bill text
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Sponsors
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2 on record
Primary sponsor
Cosponsor
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