**Chart 2. The title is "Example Comparison of Minimum Regulatory Capital with Economic Capital"**

A bar chart depicting capital allocations in the regulatory model and the bank model. PD = probability of default; LGD = loss given default; EAD = exposure at default. In the regulatory model, with a minimum regulatory capital of $21 billion, market risk is 4 (10-day value-at-risk plus specific risk charge), operational risk is 5 (frequency and severity loss distributions and other factors), and credit risk is 12 (PD and LGD bands, EAD, and some maturity data as inputs; regulatory risk curves used to capture correlations; credit losses related to default). In the bank model, with an economic capital of $25 billion, liquidity risk is 4 (funding sources; uses stress scenario analysis), business risk is 4 (measure of potential earnings volatility), interest rate risk is 4 (economic value of equity results), market risk is 5 (value-at-risk over a liquidation period plus stress scenario analysis), operational risk is 5 (frequency and severity loss distributions and other factors), credit risk is 10 (PD, LGD, EAD, and maturity as inputs; observed correlations used; credit concentrations considered; credit losses related to changes in economic value), and diversification benefit is minus 7 (vector analysis of risk correlations). Other model differences are different confidence levels used and variations in input data.