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Related Party Transactions (Tables)
 3 Months Ended
Mar. 31, 2013
Related Party Transactions [Abstract]  
Summary of Related Party Transactions
The following table presents related party balances and the income and expense generated by related party transactions:
 
March 31, 2013
 
December 31, 2012
 
(in millions)
Assets:
 
 
 
Cash and due from banks
$
152

 
$
114

Interest bearing deposits with banks
672

 
714

Securities purchased under agreements to resell
180

 
—

Trading assets(1)
19,625

 
21,370

Loans
4,779

 
4,514

Other
915

 
858

Total assets
$
26,323

 
$
27,570

Liabilities:
 
 
 
Deposits
$
19,830

 
$
13,863

Trading liabilities(1)
22,940

 
23,910

Short-term borrowings
2,376

 
2,721

Long-term debt
3,990

 
3,990

Other
501

 
459

Total liabilities
$
49,637

 
$
44,943

 
(1) 
Trading assets and liabilities exclude the impact of netting which allows the offsetting of amounts relating to certain contracts if certain conditions are met.
Three Months Ended March 31,
2013
 
2012
 
(in millions)
Income/(Expense):
 
 
 
Interest income
$
22

 
$
13

Interest expense
(20
)
 
(24
)
Net interest income (loss)
$
2

 
$
(11
)
Servicing and other fees from HSBC affiliate:
 
 
 
Fees and commissions:
 
 
 
HSBC Finance
$
21

 
$
14

HSBC Markets (USA) Inc. (“HMUS”)
5

 
5

Other HSBC affiliates
16

 
28

Other HSBC affiliates income
12

 
9

Total affiliate income
$
54

 
$
56

Residential mortgage banking revenue
$
—

 
$
2

Support services from HSBC affiliates:
 
 
 
HSBC Finance
$
(4
)
 
$
(10
)
HMUS
(52
)
 
(73
)
HSBC Technology & Services (USA) (“HTSU”)
(233
)
 
(234
)
Other HSBC affiliates
(35
)
 
(51
)
Total support services from HSBC affiliates
$
(324
)
 
$
(368
)
Stock based compensation expense with HSBC
$
(9
)
 
$
(12
)
Information Regarding Loans
As it relates to our discontinued credit card and private label operations, in January 2009, we purchased the GM and UP Portfolios from HSBC Finance, with an outstanding principal balance of $12.4 billion at the time of sale, at a total net premium of $113 million. Additionally, in December 2004, we purchased the private label credit card receivable portfolio as well as private label commercial and closed end loans from HSBC Finance. HSBC Finance retained the customer account relationships for both the GM and UP receivables and the private label credit card receivables and by agreement we purchased on a daily basis substantially all new originations from these account relationships from HSBC Finance. Premiums paid for these receivables are amortized to interest income over the estimated life of the receivables purchased and are included as a component of Income from Discontinued Operations. HSBC Finance serviced these credit card loans for us for a fee through April 30, 2012. Fees paid for servicing these loan portfolios, which are included as a component of Income from discontinued operations, totaled $152 million during the three months ended March 31, 2012. Information regarding these loans is summarized in the table below.
 
Private Label
 
Credit Card
 
 
  
Cards
 
Commercial and
Closed
End Loans
 
General
Motors
 
Union
Privilege
 
Other
 
Total
 
(in billions)
Total loans purchased on a daily basis from HSBC Finance during:
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2012
3.3

 
—

 
2.9

 
.7

 
.5

 
7.4