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S. 2663Senate119th Congress (2025-2027)In Committee

Merchant Banking Modernization Act

Sponsored by Mike RoundsSen. Mike Rounds (R-SD)
Introduced August 1, 2025

AI-Generated Summary

Updated November 23, 2025 at 10:57 PM UTC

The Merchant Banking Modernization Act changes the Bank Holding Company Act so that banks and their holding companies can keep merchant‑banking investments for at least 15 years. This applies to new investments and also extends the same minimum holding period to investments that already exist when the law becomes effective.

Key Provisions

  • Amends the Bank Holding Company Act to require that, under applicable regulations, bank holding companies may hold merchant‑banking investments for a minimum of 15 years.
  • For any merchant‑banking investment already held when the law takes effect, the required holding period is also set to at least 15 years measured from the original investment date.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

August 1, 2025

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SenateIntro Referral

Introduced in Senate

August 1, 2025

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

August 1, 2025

Bill Text

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Introduced in SenateIssued August 1, 2025

II

119th CONGRESS

1st Session

S. 2663

IN THE SENATE OF THE UNITED STATES

August 1, 2025

Mr. Rounds (for himself, Mr. Scott of South Carolina, Mr. Cramer, Mr. Hagerty, Mr. Daines, Mr. Mullin, Mr. Scott of Florida, and Mr. Tillis) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To amend the Bank Holding Company Act of 1956 to generally permit holding merchant banking investments of up to 15 years.

1.

Short title

This Act may be cited as the Merchant Banking Modernization Act.

2.

Merchant banking activities

Section 4(k)(7)(A) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(7)(A)) is amended by inserting Under such regulations, the period of time generally permitted for holding merchant banking investments shall not be less than 15 years. For any merchant banking investment held on the date of enactment of the Merchant Banking Modernization Act, the holding period of time permitted shall not be less than 15 years from the initial date of the investment. after the period at the end.