The Default element is related to the use of policies which are traditional and have not been changed for a long time, policies which have been thrust upon us by external agencies, such as the international financial institutions and donor countries, and the imitation of policies which may not be appropriate to our particular environment.
Moreover, foreign operations of a SIFI are more likely to be ring-fenced or wound down separately under the insolvency laws of their host countries if foreign authorities or directors do not have full confidence that local interests would be protected.