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S. 2663119th CongressIn committeeLatest action Aug 1, 2025Decoded by AI · checked against the record
Official title: Merchant Banking Modernization Act
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
S 2663 sets a 15-year minimum holding period for merchant banking investments, up from the current roughly 10-year practice.
55-second read · 4 questions answered below
S 2663 would establish a 15-year minimum holding period for merchant banking investments made by financial holding companies, replacing a flexible regulatory standard that has generally allowed around 10 years. Banks would be required to hold these private company investments for at least 15 years before being required to sell them. For investments already held when the bill becomes law, the 15-year period would restart from the date the original investment was first made.
The bill directly affects large financial institutions that qualify as financial holding companies under federal law. It also indirectly affects private companies that receive investment from those banks, since banks could remain invested in them for longer periods.
Extending the minimum holding period means banks would be permitted to keep less liquid, privately held assets on their books for longer before regulators could require an exit. For investments already held at the time of enactment, the retroactive restart of the clock could extend the permissible holding period beyond what current rules allow.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the President.
Latest action: — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.