What are the holding periods permitted for merchant banking investments?

CFR · 2024-01-01 · US · Title 12

(a) (b) (2) (i) Acquired by a financial holding company from a company in which the financial holding company held an interest under this subpart will be considered to have been acquired by the financial holding company on the date that the share, asset or ownership interest was acquired by the company; and (ii) Acquired by a company from a financial holding company will be considered to have been acquired by the company on the date that the share, asset or ownership interest was acquired by the financial holding company if— (A) The financial holding company held the share, asset, or ownership interest under this subpart; and (B) The financial holding company holds an interest in the acquiring company under this subpart. (3) (4) (i) Be submitted to the Board at least 90 days prior to the expiration of the applicable time period; (ii) Provide the reasons for the request, including information that addresses the factors in paragraph (b)(5) of this section; and (iii) Explain the financial holding company's plan for divesting the shares, assets or ownership interests. (5) (i) The cost to the financial holding company of disposing of the investment within the applicable period; (ii) The total exposure of the financial holding company to the company and the risks that disposing of the investment may pose to the financial holding company; (iii) Market conditions; (iv) The nature of the portfolio company's business; (v) The extent and history of involvement by the financial holding c

official document · source cfr-2024 · id 12:§ 225.172