However, the host regulator should also recognize that it is ultimately in its interest for the SPOE resolution of the foreign bank to be successful and, given the uncertainty of the circumstances or location of losses that emerge in an actual stress, adequate flexibility for the parent to deploy resources where needed is likewise in the host regulator’s interest.
A global bank has other stakeholders who have preferences regarding flexibility or certainty and can take actions that can potentially destabilize the firm. For instance, parent  -4company debt and equity holders may prefer less prepositioning, while local creditors and financial market utilities may prefer more. These other stakeholders can act in ways that can be destabilizing.