Bill > S2663

This bill amends the Bank Holding Company Act of 1956 to modify regulations around merchant banking investments. Specifically, the legislation would require that bank holding companies be allowed to hold merchant banking investments for at least 15 years. Merchant banking is a type of investment where banks can acquire and hold equity stakes in non-financial companies. The bill provides two key provisions: first, it establishes that financial regulators must permit a minimum holding period of 15 years for new merchant banking investments, and second, it stipulates that any merchant banking investments already in place at the time of the bill's enactment will be grandfathered in with a 15-year holding period calculated from their initial investment date. This change aims to provide more flexibility and longer-term investment opportunities for bank holding companies in their merchant banking activities, potentially allowing them more time to develop and realize value from their investments.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2663/all-info