Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related party balances and income and (expense) generated by related party transactions

	June 30, 2012		December 31, 2011
	(in millions)
Assets:
Cash	$	960	$	209
Interest bearing deposits with banks		-		-
Securities purchased under agreements to resell		1,397		920
Derivative related assets		180		-
Other assets		101		124
Total assets	$	2,638	$	1,253
Liabilities:
Due to affiliates (includes $466 million and $447 million at June 30, 2012 and December 31, 2011, respectively, carried at fair value)	$	8,030	$	8,262
Derivative related liabilities		-		25
Other liabilities (1)		72		47
Total liabilities	$	8,102	$	8,334

⁽¹⁾  Other liabilities includes $4 million and $55 million at June 30, 2012 and December 31, 2011, respectively, related to accrued interest receivable on derivative positions and other amounts with affiliates.

	Three Months Ended June  30,						Six Months Ended June  30,
	2012			2011			2012			2011
				(in millions)
Income/(Expense):
Interest income from HSBC affiliates	$	1		$	2		$	2		$	4
Interest expense paid to HSBC affiliates (1)		(141	)		(143	)		(280	)		(296	)
Net interest income (loss)		(140	)		(141	)		(278	)		(292	)
Gain/(loss) on FVO debt with affiliate		(5	)		5			(19	)		(7	)
HSBC affiliate income:
Servicing and other fees from HSBC affiliates:
Real estate secured servicing and related fees from HSBC Bank USA		2			3			5			6
Other servicing, processing, origination and support revenues		3			3			5			5
HSBC Technology and Services (USA) Inc. (“HTSU”) administrative fees and rental revenue (2)		4			-			8			2
Total servicing and other fees from HSBC affiliates		9			6			18			13
Support services from HSBC affiliates		(79	)		(72	)		(145	)		(139	)
Stock based compensation expense with HSBC		(2	)		(2	)		(4	)		(4	)

⁽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 $4 million and $7 million during the three and six months ended June 30, 2012, respectively, compared to $(2) million and less than $(1) million in the year-ago periods.

Fees received and paid

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(in millions)
Fees received from HSBC Bank USA	$	1	$	1	$	3	$	3
Fees paid to HSBC Bank USA		1		2		3		4

Receivable portfolios

			Credit Cards
	Private Label		General Motors		Union Privilege		Other		Total
	(in billions)
Receivables serviced for HSBC Bank USA:
June 30, 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:
Three months ended June 30, 2012 (1)	$	1.1	$	1.0	$	.3	$	.1	$	2.5
Three months ended June 30, 2011		3.6		3.3		.8		1.1		8.8
Six months ended June 30, 2012 (1)		4.4		3.9		1.0		1.1		10.4
Six months ended June 30, 2011		6.8		6.4		1.5		2.0		16.7

⁽¹⁾  Amounts shown for 2012 represent totals from the beginning of the period through May 1, 2012, the date of the sale of our Card and Retail Services business to Capital One.