Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2012

Text Block [Abstract]

Schedule of Related Party Transactions

At December 31,	2012		2011
	(in millions)
Assets:
Cash	$	193	$	209
Securities purchased under agreements to resell	2,160		920
Other assets	105		124
Total assets	$	2,458	$	1,253
Liabilities:
Due to affiliates (includes $514 million and $447 million at December 31, 2012 and 2011 carried at fair value, respectively)	$	9,089	$	8,262
Derivative related liability	18		25
Other liabilities(1)	83		47
Total liabilities	$	9,190	$	8,334

⁽¹⁾  Other liabilities includes $55 million at December 31, 2011 related to accrued interest receivable on derivative positions with affiliates. There were no similar balances at December 31, 2012.

Year Ended December 31,	2012			2011			2010
	(in millions)
Income/(Expense):
Interest income from HSBC affiliates	$	4		$	6		$	7
Interest expense paid to HSBC affiliates(1)	(552		)	(578		)	(764		)
Net interest income (loss)	$	(548	)	$	(572	)	$	(757	)
Gain (loss) on FVO debt with affiliate	$	(68	)	$	(10	)	$	(4	)
HSBC affiliate income:
Servicing and other fees from HSBC affiliates:
Real estate secured servicing and related fees from HSBC Bank USA	$	10		$	11		$	12
Other servicing, processing and support revenues	7			10			16
HSBC Technology and Services (USA) Inc. (“HTSU”) administrative fees and rental revenue(2)	18			(1		)	8
Total servicing and other fees from HSBC affiliates	$	35		$	20		$	36
Support services from HSBC affiliates	$	(310	)	$	(270	)	$	(241	)
Stock based compensation expense with HSBC	$	(10	)	$	(8	)	$	(10	)

⁽¹⁾  Includes interest expense paid to HSBC affiliates for debt held by HSBC affiliates as well as net interest paid to or received from HSBC affiliates on risk management positions related to non-affiliated debt.

⁽²⁾  Rental revenue/(expense) from HTSU totaled $15 million, $(9) million and $3 million during 2012, 2011 and 2010, respectively.

Fees Received and Paid

The following table summarizes fees received and paid during 2012, 2011 and 2010, respectively:

Year Ended December 31,	2012		2011		2010
	(in millions)
Fees received from HSBC Bank USA	$	6	$	7	$	7
Fees paid to HSBC Bank USA	3		10		8

Receivable Portfolios

			Credit Cards
	Private Label		General Motors		Union Plus		Other		Total
	(in billions)
Receivables serviced for HSBC Bank USA:
December 31, 2012	$	—	$	—	$	—	$	—	$	—
December 31, 2011	12.8		4.1		3.5		2.0		22.4
Total of receivables sold on a daily basis to HSBC Bank USA during:
2012	4.4		3.9		1.0		1.1		10.4
2011	15.4		13.0		3.2		4.1		35.7
2010	14.6		13.5		3.2		4.1		35.4