H.R. 5291 explained · 119th Congress · Pending in Congress
Merchant Banking Modernization Act
Cosponsors: 1 (1 D, 0 R) · per Congress.gov, 2026-10-10
Introduced: 2025-09-10
Latest action (2025-11-04): Placed on the Union Calendar, Calendar No. 320.
What H.R. 5291 does, in plain terms
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.
Official summary by the Congressional Research Service, via Congress.gov.
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