The Merchant Banking Modernization Act proposes to amend the Bank Holding Company Act of 1956, specifically targeting regulations concerning merchant banking investments. Its primary objective is to significantly extend the duration for which bank holding companies can hold these types of investments. Under the proposed changes to Section 4(k)(7)(A), the period generally permitted for holding merchant banking investments would be set at a minimum of 15 years. This extended holding period would also apply retroactively to any merchant banking investments held on the date of the Act's enactment, ensuring they can be held for at least 15 years from their original investment date.