Merchant Banking Modernization Act

This bill would require financial holding companies to be allowed to keep their merchant banking investments for at least 15 years. Currently, these companies can generally not own interests in non-financial businesses, but there is an exception for merchant banking activities, which are financial services for private commercial companies. When providing these services, the financial holding company may receive ownership stakes in these private companies. Right now, these ownership stakes can only be held for 10 years, with a possible extension if approved by the Federal Reserve Board.

Your Vote