To amend the Bank Holding Company Act of 1956 to generally permit holding merchant banking investments of up to 15 years.
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.
Ordered to be Reported by the Yeas and Nays: 26 - 16.
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 35 - 17.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-368.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-368.
Placed on the Union Calendar, Calendar No. 320.
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