“The hot-button issue is one of the most hotly-debated issues in finance,” the source added.
“The issue has captured the imagination of investors, who’ve been clamoring for a solution that will better track their portfolio value, and regulators have been pushing back.”
For example, the Federal Reserve has issued a series of warnings about the risks posed by hot-buzzed accounts.
“If hot-ticket accounting is not properly managed, we will see financial institutions that are too reliant on hot-money to be successful,” the Fed warned in November.
“If this trend continues, financial institutions may be forced to raise additional capital from outside sources.”
It also warned that “hot-ticket accounts could pose substantial risks to the financial system.”