Congress·Reported·H.R. 5291

Merchant Banking Modernization Act

Banking: Longer Investment Limits for Private Companies

8 months ago·View on Congress.gov·Read full text

Part of: Legislative Push to Shift Regulatory Focus Toward Domestic Banking

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Stalled

No legislative action in over 90 days.

Legislative Progress

House

Senate

President

Law

Key Points

This bill changes the rules for "merchant banking," which is when a bank buys a stake in a private company to help it grow instead of just giving it a loan. It would allow banks to keep these investments for at least 15 years.
Currently, banks are often required to sell these investments after a shorter period. By extending the limit to 15 years, the bill aims to provide businesses with more stable, long-term funding so they have more time to succeed before the bank has to pull its money out.
The new 15-year rule would apply to both future investments and ones the banks already own. For investments already in place, the 15-year clock would be counted from the date the bank first made the investment.
This policy mainly affects large bank holding companies and the private businesses they invest in. Supporters believe it will help the economy by encouraging long-term growth, while critics sometimes worry about banks having too much control over non-banking businesses.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

3 milestones6 actions

Nov 4, 2025House

Placed on the Union Calendar, Calendar No. 320.

The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.

Nov 4, 2025House

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-368.

Sep 16, 2025House

Ordered to be Reported (Amended) by the Yeas and Nays: 35 - 17.

The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.

Sep 16, 2025House

Committee Consideration and Mark-up Session Held

Sep 10, 2025House

Referred to the House Committee on Financial Services.

Votes

No votes have been recorded for this legislation yet.

News

No related news coverage found for this legislation yet.

Source Information

Document Type

Congressional Bill

Official Title

Merchant Banking Modernization Act

Bill NumberHR 5291

Congress119th Congress

ChamberHouse of Representatives

Latest ActionPlaced on the Union Calendar, Calendar No. 320.

Data Sources

Congress.gov

Official legislative information

Read Full Bill Text

Sponsor

Cosponsors

(1)

D: 1

Analysis generated by AI. Always verify with official sources.