Congress·In Committee·S. 2663

Merchant Banking Modernization Act

Banking: Longer Investment Periods for Banks

Aug 1, 2025·View on Congress.gov·Read full text

Next up: A senate committeeNo action in 11 months

The Merchant Banking Modernization Act is currently in the early stages of the legislative process. It was recently introduced in the Senate and sent to the Committee on Banking, Housing, and Urban Affairs for review. No further actions are scheduled at this time, and the bill is waiting for the committee to decide on its next steps.

Legislative Progress

Senate

House

President

Law

Unlikely to pass

This bill is supported only by Republicans so far. In a divided Congress, it will need support from both parties to move forward and become law.

Key Points

This bill changes how long large banks can own shares in private companies. Right now, banks are usually required to sell these investments after a certain amount of time. This plan would let them keep those investments for at least 15 years.
The rule applies to merchant banking. This is when a bank puts its own money into a business to help it grow or expand. By extending the time limit, banks can wait longer for a company to succeed before they have to sell their stake.
The new 15-year limit would apply to investments banks already have and any new ones they make. This prevents banks from being forced to sell their current business stakes before they are ready.
This change aims to provide businesses with more stable, long-term money from the banking industry. However, some people worry that letting banks own other types of businesses for a long time could make the financial system more risky.

Impact Analysis

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

Milestones

2 milestones2 actions

Aug 1, 2025Senate

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

Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.

Aug 1, 2025

Introduced in Senate

The bill was officially filed and given a number. It now enters the legislative queue.

No votes or news coverage recorded for this bill yet.

Source Information

Document Type

Congressional Bill

Official Title

Merchant Banking Modernization Act

Bill NumberS 2663

Congress119th Congress

ChamberSenate

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

Data Sources

Congress.gov

Official legislative information

Read Full Bill Text

Sponsor

Cosponsors

(14)

R: 14

Analysis generated by AI. Always verify with official sources.