10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-7436

HSBC USA Inc.

(Exact name of registrant as specified in its charter)

Maryland	13-2764867
(State of incorporation)	(I.R.S. Employer Identification No.)
452 Fifth Avenue, New York	10018
(Address of principal executive offices)	(Zip Code)

(212) 525-5000

Registrant’s telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý  No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý  No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	o	Accelerated filer	o	Non-accelerated filer	ý	Smaller reporting company	o
				(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o  No  ý

As of May 1, 2015, there were 714 shares of the registrant’s common stock outstanding, all of which are owned by HSBC North America Inc.

HSBC USA Inc.

TABLE OF CONTENTS

Part/Item No.
Part I		Page
Item 1.	Financial Statements (Unaudited):
	Consolidated Statement of Income	3
	Consolidated Statement of Comprehensive Income	4
	Consolidated Balance Sheet	5
	Consolidated Statement of Changes in Shareholder's Equity	7
	Consolidated Statement of Cash Flows	8
	Notes to the Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations:
	Forward-Looking Statements	75
	Executive Overview	77
	Basis of Reporting	79
	Balance Sheet Review	80
	Results of Operations	85
	Segment Results - Group Reporting Basis	93
	Credit Quality	98
	Liquidity and Capital Resources	106
	Off-Balance Sheet Arrangements, Credit Derivatives and Other Contractual Obligations	111
	Fair Value	112
	Risk Management	116
	Consolidated Average Balances and Interest Rates	123
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	124
Item 4.	Controls and Procedures	124
Part II
Item 1.	Legal Proceedings	124
Item 5.	Other Information	124
Item 6.	Exhibits	126
Index		127
Signatures		129

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HSBC USA Inc.

PART I

Item 1. Financial Statements

CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Three Months Ended March 31,	2015		2014
	(in millions)
Interest income:
Loans	$	501	$	464
Securities	200		207
Trading assets	95		48
Short-term investments	22		16
Other	15		10
Total interest income	833		745
Interest expense:
Deposits	46		35
Short-term borrowings	11		6
Long-term debt	167		170
Other	3		15
Total interest expense	227		226
Net interest income	606		519
Provision for credit losses	53		16
Net interest income after provision for credit losses	553		503
Other revenues:
Credit card fees	10		14
Other fees and commissions	182		173
Trust income	35		31
Trading revenue	33		133
Net other-than-temporary impairment losses(1)	—		(2		)
Other securities gains, net	23		22
Servicing and other fees from HSBC affiliates	56		47
Residential mortgage banking revenue	19		48
Gain on instruments designated at fair value and related derivatives	85		28
Other income	21		6
Total other revenues	464		500
Operating expenses:
Salaries and employee benefits	246		215
Support services from HSBC affiliates	352		354
Occupancy expense, net	56		57
Other expenses	123		124
Total operating expenses	777		750
Income before income tax	240		253
Income tax expense	76		149
Net income	$	164	$	104

⁽¹⁾  During the three months ended March 31, 2015, there were no other-than-temporary impairment ("OTTI") losses on securities recognized in other revenues and no OTTI losses in the non-credit component of securities recognized in accumulated other comprehensive loss ("AOCI"), net of tax. During the three months ended March 31, 2014, OTTI losses on securities held-to-maturity totaling $2 million were recognized in other revenues. There were no OTTI losses in the non-credit component of such impaired securities recognized in AOCI, net of tax.

The accompanying notes are an integral part of the consolidated financial statements.

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HSBC USA Inc.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended March 31,	2015			2014
	(in millions)
Net income	$	164		$	104
Net change in unrealized gains (losses), net of tax:
Investment securities	(28		)	130
Other-than-temporarily impaired debt securities held-to-maturity	—			1
Derivatives designated as cash flow hedges	(19		)	(20		)
Pension and post-retirement benefit plans	1			—
Total other comprehensive income (loss)	(46		)	111
Comprehensive income	$	118		$	215

The accompanying notes are an integral part of the consolidated financial statements.

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HSBC USA Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)
	March 31, 2015			December 31, 2014
	(in millions, except share data)
Assets(1)
Cash and due from banks	$	972		$	891
Interest bearing deposits with banks	32,249			30,807
Federal funds sold and securities purchased under agreements to resell	6,965			1,413
Trading assets	22,444			21,092
Securities available-for-sale	33,096			30,140
Securities held-to-maturity (fair value of $14.4 billion and $13.7 billion at March 31, 2015 and December 31, 2014, respectively)	14,015			13,469
Loans	81,458			77,741
Less – allowance for credit losses	703			680
Loans, net	80,755			77,061
Loans held for sale (includes $255 million and $384 million designated under fair value option at March 31, 2015 and December 31, 2014, respectively)	405			612
Properties and equipment, net	238			247
Intangible assets, net	186			206
Goodwill	1,612			1,612
Other assets	8,657			7,989
Total assets	$	201,594		$	185,539
Liabilities(1)
Debt:
Deposits in domestic offices:
Noninterest bearing	$	30,598		$	29,715
Interest bearing (includes $6.9 billion and $7.3 billion designated under fair value option at March 31, 2015 and December 31, 2014, respectively)	75,240			71,191
Deposits in foreign offices:
Noninterest bearing	845			850
Interest bearing	12,411			14,362
Total deposits	119,094			116,118
Short-term borrowings	15,653			12,795
Long-term debt (includes $9.0 billion and $8.8 billion designated under fair value option at March 31, 2015 and December 31, 2014, respectively)	29,420			27,524
Total debt	164,167			156,437
Trading liabilities	11,288			8,164
Interest, taxes and other liabilities	5,068			3,971
Total liabilities	180,523			168,572
Shareholders' equity
Preferred stock	1,565			1,565
Common shareholders' equity:
Common stock ($5 par; 150,000,000 shares authorized; 714 and 713 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively)	—			—
Additional paid-in capital	18,174			14,170
Retained earnings	1,379			1,233
Accumulated other comprehensive loss	(47		)	(1		)
Total common shareholders' equity	19,506			15,402
Total shareholders’ equity	21,071			16,967
Total liabilities and shareholders’ equity	$	201,594		$	185,539

⁽¹⁾  The following table summarizes assets and liabilities related to our consolidated variable interest entities ("VIEs") as of March 31, 2015 and December 31, 2014which are consolidated on our balance sheet. Assets and liabilities exclude intercompany balances that eliminate in consolidation. See Note 16, "Variable Interest Entities," for additional information.

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HSBC USA Inc.

	March 31, 2015		December 31, 2014
	(in millions)
Assets
Other assets	372		380
Total assets	$	372	$	380
Liabilities
Long-term debt	92		92
Interest, taxes and other liabilities	86		75
Total liabilities	$	178	$	167

The accompanying notes are an integral part of the consolidated financial statements.

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HSBC USA Inc.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
Three Months Ended March 31,	2015			2014
	(dollars are in millions)
Preferred stock
Balance at beginning and end of period	$	1,565		$	1,565
Common stock
Balance at beginning and end of period	—			—
Additional paid-in capital
Balance at beginning of period	14,170			14,106
Capital contribution from parent	4,000			—
Employee benefit plans	4			6
Balance at end of period	18,174			14,112
Retained earnings
Balance at beginning of period	1,233			952
Net income	164			104
Cash dividends declared on preferred stock	(18		)	(18		)
Balance at end of period	1,379			1,038
Accumulated other comprehensive loss
Balance at beginning of period	(1		)	(159		)
Other comprehensive income (loss), net of tax	(46		)	111
Balance at end of period	(47		)	(48		)
Total common shareholders' equity	19,506			15,102
Total shareholders’ equity	$	21,071		$	16,667

The accompanying notes are an integral part of the consolidated financial statements.

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HSBC USA Inc.

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
Three Months Ended March 31,	2015			2014
	(in millions)
Cash flows from operating activities
Net income	$	164		$	104
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	37			32
Provision for credit losses	53			16
Other-than-temporary impairment related to securities held-to-maturity	—			2
Net realized gains on securities available-for-sale	(23		)	(22		)
Net change in other assets and liabilities	650			743
Net change in loans held for sale:
Originations of loans	(760		)	(374		)
Sales and collection of loans held for sale	758			385
Net change in trading assets and liabilities	1,772			32
Lower of amortized cost or fair value adjustments on loans held for sale	6			(1		)
Gain on instruments designated at fair value and related derivatives	(85		)	(28		)
Net cash provided by operating activities	2,572			889
Cash flows from investing activities
Net change in interest bearing deposits with banks	(1,442		)	(3,852		)
Net change in federal funds sold and securities purchased under agreements to resell	(5,552		)	767
Securities available-for-sale:
Purchases of securities available-for-sale	(8,509		)	(5,783		)
Proceeds from sales of securities available-for-sale	5,491			6,855
Proceeds from maturities of securities available-for-sale	236			701
Securities held-to-maturity:
Purchases of securities held-to-maturity	(1,105		)	—
Proceeds from maturities of securities held-to-maturity	554			75
Change in loans:
Originations, net of collections	(3,652		)	(2,014		)
Loans sold to third parties	98			11
Net cash used for acquisitions of properties and equipment	(6		)	(5		)
Other, net	(209		)	—
Net cash used in investing activities	(14,096		)	(3,245		)
Cash flows from financing activities
Net change in deposits	2,919			(7,147		)
Debt:
Net change in short-term borrowings	2,858			9,632
Issuance of long-term debt	8,943			767
Repayment of long-term debt	(7,101		)	(690		)
Capital contribution from parent	4,000			—
Other increases in capital surplus	4			6
Dividends paid	(18		)	(18		)
Net cash provided byfinancing activities	11,605			2,550
Net change in cash and due from banks	81			194
Cash and due from banks at beginning of period	891			961
Cash and due from banks at end of period	$	972		$	1,155

The accompanying notes are an integral part of the consolidated financial statements.

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HSBC USA Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note		Page	Note		Page
1	Organization and Presentation	9	11	Accumulated Other Comprehensive Loss	39
2	Trading Assets and Liabilities	10	12	Pension and Other Postretirement Benefits	40
3	Securities	11	13	Related Party Transactions	41
4	Loans	17	14	Business Segments	44
5	Allowance for Credit Losses	27	15	Retained Earnings and Regulatory Capital Requirements	46
6	Loans Held for Sale	28	16	Variable Interest Entities	47
7	Intangible Assets	29	17	Guarantee Arrangements, Pledged Assets and Collateral	49
8	Goodwill	30	18	Fair Value Measurements	55
9	Derivative Financial Instruments	30	19	Litigation and Regulatory Matters	71
10	Fair Value Option	37	20	New Accounting Pronouncements	74

1. Organization and Presentation

HSBC USA Inc. ("HSBC USA"), incorporated under the laws of Maryland, is a New York State based bank holding company and an indirect wholly-owned subsidiary of HSBC North America Holdings Inc. ("HSBC North America"), which is an indirect wholly-owned subsidiary of HSBC Holdings plc ("HSBC" and, together with its subsidiaries, "HSBC Group"). The accompanying unaudited interim consolidated financial statements of HSBC USA and its subsidiaries (collectively "HUSI") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, as well as in accordance with predominant practices within the banking industry. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods have been made. HUSI may also be referred to in these notes to the consolidated financial statements as "we", "us" or "our". These unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014 (the "2014 Form 10-K"). Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

The preparation of financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Interim results should not be considered indicative of results in future periods.

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HSBC USA Inc.

2.    Trading Assets and Liabilities

Trading assets and liabilities consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Trading assets:
U.S. Treasury	$	2,912	$	2,675
U.S. Government agency issued or guaranteed	4		3
U.S. Government sponsored enterprises(1)	103		45
Obligations of U.S. states and political subdivisions	586		591
Asset backed securities	480		481
Corporate and foreign bonds	8,525		9,681
Other securities	18		22
Precious metals	3,310		1,992
Derivatives, net	6,506		5,602
	$	22,444	$	21,092
Trading liabilities:
Securities sold, not yet purchased	$	646	$	683
Payables for precious metals	—		22
Derivatives, net	10,642		7,459
	$	11,288	$	8,164

⁽¹⁾  Consists of mortgage backed securities of $103 million and $45 million issued or guaranteed by the Federal National Mortgage Association ("FNMA") at March 31, 2015 and December 31, 2014, respectively.

At March 31, 2015 and December 31, 2014, the fair value of derivatives included in trading assets is net of $6,573 million and $4,811 million, respectively, relating to amounts recognized for the obligation to return cash collateral received under master netting agreements with derivative counterparties.

At March 31, 2015 and December 31, 2014, the fair value of derivatives included in trading liabilities is net of $1,084 million and $1,724 million, respectively, relating to amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.

See Note 9, "Derivative Financial Instruments," for further information on our trading derivatives and related collateral.

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HSBC USA Inc.

3. Securities

Our securities available-for-sale and securities held-to-maturity portfolios consisted of the following:

March 31, 2015	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in millions)
Securities available-for-sale:
U.S. Treasury	$	10,720	$	235	$	(56	)	$	10,899
U.S. Government sponsored enterprises:(1)
Mortgage-backed securities	670		8		(1		)	677
Collateralized mortgage obligations	35		—		—			35
Direct agency obligations	4,143		206		(6		)	4,343
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	11,457		93		(26		)	11,524
Collateralized mortgage obligations	378		7		(1		)	384
Obligations of U.S. states and political subdivisions	742		10		(4		)	748
Asset backed securities collateralized by:
Commercial mortgages	29		—		—			29
Home equity	94		—		(9		)	85
Other	112		—		(18		)	94
Foreign debt securities(2)	4,121		9		(17		)	4,113
Equity securities	162		3		—			165
Total available-for-sale securities	$	32,663	$	571	$	(138	)	$	33,096
Securities held-to-maturity:
U.S. Government sponsored enterprises:(3)
Mortgage-backed securities	$	5,280	$	177	$	(1	)	$	5,456
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	3,482		59		—			3,541
Collateralized mortgage obligations	5,222		100		(2		)	5,320
Obligations of U.S. states and political subdivisions	21		1		—			22
Asset-backed securities collateralized by residential mortgages	10		1		—			11
Total held-to-maturity securities	$	14,015	$	338	$	(3	)	$	14,350

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December 31, 2014	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in millions)
Securities available-for-sale:
U.S. Treasury	$	11,793	$	276	$	(58	)	$	12,011
U.S. Government sponsored enterprises:(1)
Mortgage-backed securities	520		5		(1		)	524
Collateralized mortgage obligations	35		—		—			35
Direct agency obligations	3,995		217		(6		)	4,206
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	7,985		101		(27		)	8,059
Collateralized mortgage obligations	329		3		(2		)	330
Obligations of U.S. states and political subdivisions	661		10		(4		)	667
Asset backed securities collateralized by:
Commercial mortgages	43		—		—			43
Home equity	97		—		(8		)	89
Other	110		—		(16		)	94
Foreign debt securities(2)	3,921		6		(12		)	3,915
Equity securities	165		3		(1		)	167
Total available-for-sale securities	$	29,654	$	621	$	(135	)	$	30,140
Securities held-to-maturity:
U.S. Government sponsored enterprises:(3)
Mortgage-backed securities	$	4,868	$	120	$	(1	)	$	4,987
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	3,700		53		(1		)	3,752
Collateralized mortgage obligations	4,867		54		(1		)	4,920
Obligations of U.S. states and political subdivisions	23		1		—			24
Asset-backed securities collateralized by residential mortgages	11		1		—			12
Total held-to-maturity securities	$	13,469	$	229	$	(3	)	$	13,695

⁽¹⁾  Includes securities at amortized cost of $672 million and $521 million issued or guaranteed by FNMA at March 31, 2015 and December 31, 2014, respectively, and $33 million and $34 million issued or guaranteed by the Federal Home Loan Mortgage Corporation ("FHLMC") at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  At March 31, 2015 and December 31, 2014, foreign debt securities consisted of $1,053 million and $689 million, respectively, of securities fully backed by foreign governments. The remainder of foreign debt securities represents public sector entity, bank or corporate debt.

⁽³⁾  Includes securities at amortized cost of $3,539 million and $3,185 million issued or guaranteed by FNMA at March 31, 2015 and December 31, 2014, respectively, and $1,741 million and $1,683 million issued and guaranteed by FHLMC at March 31, 2015 and December 31, 2014, respectively.

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HSBC USA Inc.

The following table summarizes gross unrealized losses and related fair values as of March 31, 2015 and December 31, 2014 classified as to the length of time the losses have existed:

	One Year or Less						Greater Than One Year
March 31, 2015	Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment		Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment
	(dollars are in millions)
Securities available-for-sale:
U.S. Treasury	25	$	(46	)	$	4,178	5	$	(10	)	$	750
U.S. Government sponsored enterprises	9	(4		)	352		17	(3		)	160
U.S. Government agency issued or guaranteed	5	(20		)	889		8	(7		)	131
Obligations of U.S. states and political subdivisions	38	(3		)	220		21	(1		)	168
Asset backed securities	1	—			—		9	(27		)	196
Foreign debt securities	8	(16		)	3,055		1	(1		)	200
Equity securities	1	—			159		—	—			—
Securities available-for-sale	87	$	(89	)	$	8,853	61	$	(49	)	$	1,605
Securities held-to-maturity:
U.S. Government sponsored enterprises	15	$	(1	)	$	172	50	$	—		$	—
U.S. Government agency issued or guaranteed	101	(2		)	310		768	—			1
Obligations of U.S. states and political subdivisions	1	—			—		3	—			1
Securities held-to-maturity	117	$	(3	)	$	482	821	$	—		$	2

	One Year or Less						Greater Than One Year
December 31, 2014	Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment		Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment
	(dollars are in millions)
Securities available-for-sale:
U.S. Treasury	6	$	(47	)	$	3,459	4	$	(11	)	$	1,546
U.S. Government sponsored enterprises	2	(1		)	128		24	(6		)	391
U.S. Government agency issued or guaranteed	30	(20		)	2,046		10	(9		)	213
Obligations of U.S. states and political subdivisions	34	(2		)	146		23	(2		)	194
Asset backed securities	1	—			3		9	(24		)	199
Foreign debt securities	5	(9		)	1,805		3	(3		)	898
Equity securities	1	(1		)	158		—	—			—
Securities available-for-sale	79	$	(80	)	$	7,745	73	$	(55	)	$	3,441
Securities held-to-maturity:
U.S. Government sponsored enterprises	144	$	(1	)	$	394	47	$	—		$	—
U.S. Government agency issued or guaranteed	103	(2		)	985		800	—			2
Obligations of U.S. states and political subdivisions	—	—			—		3	—			1
Securities held-to-maturity	247	$	(3	)	$	1,379	850	$	—		$	3

Net unrealized gains decreased within the available-for-sale portfolio in the first quarter of 2015 due primarily to sales of U.S. Treasury securities that were in a net unrealized gain position at December 31, 2014, partially offset by a decrease in yields.

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Although the fair value of a particular security is below its amortized cost, it does not necessarily result in a credit loss and hence an other-than-temporary impairment. The decline in fair value may be caused by, among other things, the illiquidity of the market. We have reviewed the securities for which there is an unrealized loss for other-than-temporary impairment in accordance with our accounting policies, discussed further below. At March 31, 2015 and December 31, 2014, we do not consider any of our debt securities to be other-than-temporarily impaired as we expect to recover their amortized cost basis and we neither intend nor expect to be required to sell these securities prior to recovery, even if that equates to holding securities until their individual maturities. However, other-than-temporary impairments may occur in future periods if the credit quality of the securities deteriorates.

Other-Than-Temporary Impairment  On a quarterly basis, we perform an assessment to determine whether there have been any events or economic circumstances to indicate that a security with an unrealized loss has suffered other-than-temporary impairment. A debt security is considered impaired if its fair value is less than its amortized cost at the reporting date. If impaired, we assess whether the impairment is other-than-temporary.

If we intend to sell the debt security or if it is more-likely-than-not that we will be required to sell the debt security before the recovery of its amortized cost basis, the impairment is considered other-than-temporary and the unrealized loss is recorded in earnings. An impairment is also considered other-than-temporary if a credit loss exists (i.e., the present value of the expected future cash flows is less than the amortized cost basis of the debt security). In the event a credit loss exists, the credit loss component of an other-than-temporary impairment is recorded in earnings while the remaining portion of the impairment loss attributable to factors other than credit loss is recognized, net of tax, in other comprehensive income (loss).

For all securities held in the available-for-sale or held-to-maturity portfolios for which unrealized losses attributed to factors other than credit existed, we do not have the intention to sell and believe will not be required to sell the securities for contractual, regulatory or liquidity reasons as of the reporting date. For a complete description of the factors considered when analyzing debt securities for impairments, see Note 5, "Securities," in our 2014 Form 10-K. There have been no material changes in our process for assessing impairment during 2015.

During the three months ended March 31, 2015, none of our debt securities were determined to have either initial other-than-temporary impairment or changes to previous other-than-temporary impairment estimates relating to the credit component, as such, there were no other-than-temporary impairment losses recognized related to credit loss.

During the three months ended March 31, 2014, none of our debt securities were determined to have initial other-than-temporary impairment while one held-to-maturity asset-backed debt security, which was previously determined to be other-than-temporarily impaired, had a change to its other-than-temporary impairment estimate related to the credit component. The additional credit loss associated with the impaired debt security, which reflects the excess of amortized cost over the present value of expected future cash flows, was $2 million and was recorded as a component of net other-than-temporary impairment losses in the accompanying consolidated statement of income.

The following table summarizes the rollforward of credit losses which have been recognized in income on other-than-temporary impaired securities that we do not intend to sell nor will likely be required to sell:

Three Months Ended March 31,	2015		2014
	(in millions)
Beginning balance of credit losses on held-to-maturity debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss)	$	—	$	61
Increase in credit losses for which an other-than-temporary impairment was previously recognized	—		2
Ending balance of credit losses on held-to-maturity debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss)	$	—	$	63

At March 31, 2015, we held 15 individual asset-backed securities in the available-for-sale portfolio, of which 5 were also wrapped by a monoline insurance company. The asset-backed securities backed by a monoline wrap comprised $180 million of the total aggregate fair value of asset-backed securities of $208 million at March 31, 2015. The gross unrealized losses on these monoline wrapped securities were $27 million at March 31, 2015. We did not take into consideration the value of the monoline wrap of any non-investment grade monoline insurers as of March 31, 2015 and, therefore, we only considered the financial guarantee of monoline insurers on securities for purposes of evaluating other-than-temporary impairment on securities with a fair value of $85 million.

At December 31, 2014, we held 15 individual asset-backed securities in the available-for-sale portfolio, of which 5 were also wrapped by a monoline insurance company. The asset-backed securities backed by a monoline wrap comprised $183 million of the total aggregate fair value of asset-backed securities of $226 million at December 31, 2014. The gross unrealized losses on these monoline wrapped securities were $23 million at December 31, 2014. We did not take into consideration the value of the monoline wrap of any non-investment grade monoline insurers as of December 31, 2014 and, therefore, we only considered the financial

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guarantee of monoline insurers on securities with a fair value of $89 million for purposes of evaluating other-than-temporary impairment.

As discussed above, certain asset-backed securities in the available-for-sale portfolio have an embedded financial guarantee provided by monoline insurers. Because the financial guarantee is not a separate and distinct contract from the asset-backed security, they are considered as a single unit of account for fair value measurement and impairment assessment purposes. The monoline insurers are regulated by the insurance commissioners of the relevant states and certain monoline insurers that write the financial guarantee contracts are public companies. In evaluating the extent of our reliance on investment grade monoline insurance companies, consideration is given to our assessment of the creditworthiness of the monoline and other market factors. We perform both a credit as well as a liquidity analysis on the monoline insurers each quarter. Our analysis also compares market-based credit default spreads, when available, to assess the appropriateness of our monoline insurer’s creditworthiness. Based on the public information available, including the regulatory reviews and actions undertaken by the state insurance commissions and the published financial results, we determine the degree of reliance to be placed on the financial guarantee policy in estimating the cash flows to be collected for the purpose of recognizing and measuring impairment loss.

A credit downgrade to non-investment grade is key but not the only factor in determining the credit risk or the monoline insurer’s ability to fulfill its contractual obligation under the financial guarantee arrangement. Although a monoline may have been down-graded by the credit rating agencies or have been ordered to commute its operations by the insurance commissioners, it may retain the ability and the obligation to continue to pay claims in the near term. We evaluate the short-term liquidity of and the ability to pay claims by the monoline insurers in estimating the amounts of cash flows expected to be collected from specific asset-backed securities for the purpose of assessing and measuring credit loss.

Realized Gains (Losses) The following table summarizes realized gains and losses on investment securities transactions attributable to available-for-sale securities:

Three Months Ended March 31,	2015			2014
	(in millions)
Gross realized gains	$	30		$	43
Gross realized losses	(7		)	(21		)
Net realized gains	$	23		$	22

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Contractual Maturities and Yields The following table summarizes the amortized cost and fair values of securities available-for-sale and securities held-to-maturity at March 31, 2015 by contractual maturity. Expected maturities differ from contractual maturities because borrowers have the right to prepay obligations without prepayment penalties in certain cases. Securities available-for-sale amounts exclude equity securities as they do not have stated maturities. The table below also reflects the distribution of maturities of debt securities held at March 31, 2015, together with the approximate taxable equivalent yield of the portfolio. The yields shown are calculated by dividing annualized interest income, including the accretion of discounts and the amortization of premiums, by the amortized cost of securities outstanding at March 31, 2015. Yields on tax-exempt obligations have been computed on a taxable equivalent basis using applicable statutory tax rates.

	Within One Year				After One But Within Five Years				After Five But Within Ten Years				After Ten Years
Taxable Equivalent Basis	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
	(dollars are in millions)
Available-for-sale:
U.S. Treasury	$	—	—	%	$	4,124	.70	%	$	3,227	2.24	%	$	3,369	2.81	%
U.S. Government sponsored enterprises	—		—		2,057		3.08		1,723		2.77		1,068		3.27
U.S. Government agency issued or guaranteed	—		—		9		4.22		42		3.89		11,784		2.84
Obligations of U.S. states and political subdivisions	—		—		96		4.12		296		2.96		350		3.41
Asset backed securities	—		—		—		—		—		—		235		3.20
Foreign debt securities	567		3.16		3,554		1.42		—		—		—		—
Total amortized cost	$	567	3.16	%	$	9,840	1.50	%	$	5,288	2.46	%	$	16,806	2.88	%
Total fair value	$	574			$	9,954			$	5,479			$	16,924
Held-to-maturity:
U.S. Government sponsored enterprises	$	—	—	%	$	92	1.40	%	$	615	2.52	%	$	4,573	3.01	%
U.S. Government agency issued or guaranteed	—		—		1		7.66		47		2.80		8,656		2.44
Obligations of U.S. states and political subdivisions	3		5.09		8		3.93		6		3.83		4		5.34
Asset backed securities	—		—		—		—		—		—		10		6.40
Total amortized cost	$	3	5.09	%	$	101	1.65	%	$	668	2.55	%	$	13,243	2.64	%
Total fair value	$	3			$	103			$	685			$	13,559

Investments in Federal Home Loan Bank stock and Federal Reserve Bank stock of $315 million and $485 million, respectively, were included in other assets at March 31, 2015. Investments in Federal Home Loan Bank stock and Federal Reserve Bank stock of $108 million and $483 million, respectively, were included in other assets at December 31, 2014.

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4. Loans

Loans consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Commercial loans:
Construction and other real estate	$	10,901	$	10,300
Business and corporate banking	19,251		17,819
Global banking(1)	28,029		26,387
Other commercial	3,466		3,581
Total commercial	61,647		58,087
Consumer loans:
Residential mortgages	16,991		16,661
Home equity mortgages	1,716		1,784
Credit cards	680		720
Other consumer	424		489
Total consumer	19,811		19,654
Total loans	$	81,458	$	77,741

⁽¹⁾  Represents large multinational firms including globally focused U.S. corporate and financial institutions and U.S. dollar lending to multinational banking customers managed by HSBC on a global basis. Also includes loans to HSBC affiliates which totaled $5,016 million and $4,821 million at March 31, 2015 and December 31, 2014, respectively. See Note 13, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.

Net deferred origination fees totaled $45 million and $34 million at March 31, 2015 and December 31, 2014, respectively. At March 31, 2015 and December 31, 2014, we had a net unamortized premium on our loans of $12 million and $10 million, respectively.

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Age Analysis of Past Due Loans  The following table summarizes the past due status of our loans at March 31, 2015 and December 31, 2014. The aging of past due amounts is determined based on the contractual delinquency status of payments under the loan. An account is generally considered to be contractually delinquent when payments have not been made in accordance with the loan terms. Delinquency status is affected by customer account management policies and practices such as re-age, which results in the re-setting of the contractual delinquency status to current.

	Past Due				Total Past Due 30 Days or More
At March 31, 2015	30 - 89 days		90+ days				Current(1)		Total Loans
	(in millions)
Commercial loans:
Construction and other real estate	$	40	$	30	$	70	$	10,831	$	10,901
Business and corporate banking	13		4		17		19,234		19,251
Global banking	—		—		—		28,029		28,029
Other commercial	6		6		12		3,454		3,466
Total commercial	59		40		99		61,548		61,647
Consumer loans:
Residential mortgages	355		879		1,234		15,757		16,991
Home equity mortgages	19		54		73		1,643		1,716
Credit cards	10		10		20		660		680
Other consumer	8		8		16		408		424
Total consumer	392		951		1,343		18,468		19,811
Total loans	$	451	$	991	$	1,442	$	80,016	$	81,458

	Past Due				Total Past Due 30 Days or More
At December 31, 2014	30 - 89 days		90+ days				Current(1)		Total Loans
	(in millions)
Commercial loans:
Construction and other real estate	$	25	$	22	$	47	$	10,253	$	10,300
Business and corporate banking	32		9		41		17,778		17,819
Global banking	—		—		—		26,387		26,387
Other commercial	15		6		21		3,560		3,581
Total commercial	72		37		109		57,978		58,087
Consumer loans:
Residential mortgages	390		931		1,321		15,340		16,661
Home equity mortgages	21		56		77		1,707		1,784
Credit cards	11		10		21		699		720
Other consumer	9		9		18		471		489
Total consumer	431		1,006		1,437		18,217		19,654
Total loans	$	503	$	1,043	$	1,546	$	76,195	$	77,741

⁽¹⁾ Loans less than 30 days past due are presented as current.

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Nonaccrual Loans  Nonaccrual loans totaled $1,062 million and $1,101 million at March 31, 2015 and December 31, 2014, respectively. For an analysis of reserves for credit losses, see Note 5, "Allowance for Credit Losses." Nonaccrual loans and accruing receivables 90 days or more delinquent consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Nonaccrual loans:
Commercial:
Construction and other real estate	$	74	$	65
Business and corporate banking	78		74
Commercial nonaccrual loans held for sale	36		43
Total commercial	188		182
Consumer:
Residential mortgages(1)(2)(3)	803		847
Home equity mortgages(1)(2)	67		68
Consumer nonaccrual loans held for sale	4		4
Total consumer loans	874		919
Total nonaccruing loans	1,062		1,101
Accruing loans contractually past due 90 days or more:
Commercial:
Business and corporate banking	1		1
Total commercial	1		1
Consumer:
Credit card receivables	10		10
Other consumer	9		10
Total consumer loans	19		20
Total accruing loans contractually past due 90 days or more	20		21
Total nonperforming loans	$	1,082	$	1,122

⁽¹⁾  At March 31, 2015 and December 31, 2014, nonaccrual consumer mortgage loans include $760 million and $817 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

⁽²⁾  Nonaccrual consumer mortgage loans include all receivables which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent.

⁽³⁾  Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association ("GNMA"). Repayment of these loans are predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.

The following table provides additional information on our nonaccrual loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Interest income that would have been recorded if the nonaccrual loans had been current in accordance with contractual terms during the period	$	21	$	28
Interest income that was recorded on nonaccrual loans and included in interest income during the period	6		8

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Impaired Loans  A loan is considered to be impaired when it is deemed probable that not all principal and interest amounts due according to the contractual terms of the loan agreement will be collected. Probable losses from impaired loans are quantified and recorded as a component of the overall allowance for credit losses. Commercial and consumer loans for which we have modified the loan terms as part of a troubled debt restructuring are considered to be impaired loans. Additionally, commercial loans in nonaccrual status, or that have been partially charged-off or assigned a specific allowance for credit losses are also considered impaired loans.

Troubled debt restructurings  TDR Loans represent loans for which the original contractual terms have been modified to provide for terms that are less than what we would be willing to accept for new loans with comparable risk because of deterioration in the borrower’s financial condition.

Modifications for consumer or commercial loans may include changes to one or more terms of the loan, including, but not limited to, a change in interest rate, extension of the amortization period, reduction in payment amount and partial forgiveness or deferment of principal or accrued interest . A substantial amount of our modifications involve interest rate reductions which lower the amount of interest income we are contractually entitled to receive in future periods. Through lowering the interest rate and other loan term changes, we believe we are able to increase the amount of cash flow that will ultimately be collected from the loan, given the borrower’s financial condition. TDR Loans are reserved for either based on the present value of expected future cash flows discounted at the loans’ original effective interest rates which generally results in a higher reserve requirement for these loans or in the case of certain secured loans, the estimated fair value of the underlying collateral. Once a consumer loan is classified as a TDR Loan, it continues to be reported as such until it is paid off or charged-off. For commercial loans, if subsequent performance is in accordance with the new terms and such terms reflect current market rates at the time of restructure, they will no longer be reported as a TDR Loan beginning in the year after restructuring. During the three months ended March 31, 2015 and 2014 there were no commercial loans that met this criteria and were removed from TDR Loan classification.

The following table presents information about loans which were modified during the three months ended March 31, 2015 and 2014 and as a result of this action became classified as TDR Loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Commercial loans:
Business and corporate banking	26		10
Global banking	13		—
Total commercial	39		10
Consumer loans:
Residential mortgages	35		33
Home equity mortgages	—		1
Credit cards	1		2
Total consumer	36		36
Total	$	75	$	46

The weighted-average contractual rate reduction for consumer loans which became classified as TDR Loans during the three months ended March 31, 2015 and 2014 was 1.77 percent and 1.50 percent, respectively. The weighted-average contractual rate reduction for commercial loans was not significant in either the number of loans or rate.

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The following tables present information about our TDR Loans and the related credit loss reserves for TDR Loans:

	March 31, 2015		December 31, 2014
	(in millions)
TDR Loans(1)(2):
Commercial loans:
Construction and other real estate	$	179	$	186
Business and corporate banking	44		24
Global banking	13		—
Total commercial	236		210
Consumer loans:
Residential mortgages(3)	980		972
Home equity mortgages(3)	20		20
Credit cards	6		6
Total consumer	1,006		998
Total TDR Loans(4)	$	1,242	$	1,208
Allowance for credit losses for TDR Loans(5):
Commercial loans:
Construction and other real estate	$	2	$	4
Business and corporate banking	4		5
Total commercial	6		9
Consumer loans:
Residential mortgages	42		43
Home equity mortgages	1		2
Credit cards	2		2
Total consumer	45		47
Total allowance for credit losses for TDR Loans	$	51	$	56

⁽¹⁾  TDR Loans are considered to be impaired loans. For consumer loans, all such loans are considered impaired loans regardless of accrual status. For commercial loans, impaired loans include other loans in addition to TDR Loans which totaled $79 million and $85 million at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  The TDR Loan balances included in the table above reflect the current carrying amount of TDR Loans and includes all basis adjustments on the loan, such as unearned income, unamortized deferred fees and costs on originated loans, partial charge-offs and premiums or discounts on purchased loans. The following table reflects the unpaid principal balance of TDR Loans:

	March 31, 2015		December 31, 2014
	(in millions)
Commercial loans:
Construction and other real estate	$	197	$	201
Business and corporate banking	50		51
Global banking	13		—
Total commercial	260		252
Consumer loans:
Residential mortgages	1,147		1,139
Home equity mortgages	44		44
Credit cards	6		6
Total consumer	1,197		1,189
Total	$	1,457	$	1,441

⁽³⁾  Includes $778 million and $763 million at March 31, 2015 and December 31, 2014, respectively, of loans that are recorded at the lower of amortized cost or fair value of the collateral less cost to sell.

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⁽⁴⁾  Includes $451 million and $485 million at March 31, 2015 and December 31, 2014, respectively, of loans which are classified as nonaccrual.

⁽⁵⁾  Included in the allowance for credit losses.

The following table presents information about average TDR Loans and interest income recognized on TDR Loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Average balance of TDR Loans:
Commercial loans:
Construction and other real estate	$	182	$	264
Business and corporate banking	34		19
Global banking	7		25
Other commercial	—		18
Total commercial	223		326
Consumer loans:
Residential mortgages	976		922
Home equity mortgages	20		19
Credit cards	6		8
Total consumer	1,002		949
Total average balance of TDR Loans	$	1,225	$	1,275
Interest income recognized on TDR Loans:
Commercial loans:
Construction and other real estate	$	1	$	6
Business and corporate banking	1		—
Total commercial	2		6
Consumer loans:
Residential mortgages	9		9
Total consumer	9		9
Total interest income recognized on TDR Loans	$	11	$	15

The following table presents loans which were classified as TDR Loans during the previous 12 months which for commercial loans became 90 days or greater contractually delinquent or for consumer loans became 60 days or greater contractually delinquent during the three months ended March 31, 2015 and 2014:

Three Months Ended March 31,	2015		2014
	(in millions)
Commercial loans:
Construction and other real estate	$	2	$	12
Business and corporate banking	1		—
Total commercial	3		12
Consumer loans:
Residential mortgages	9		8
Total consumer	9		8
Total	$	12	$	20

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Impaired commercial loans  The following table summarizes impaired commercial loan statistics:

	Amount with Impairment Reserves		Amount without Impairment Reserves		Total Impaired Commercial Loans(1)(2)		Impairment Reserve
	(in millions)
At March 31, 2015
Construction and other real estate	$	14	$	185	$	199	$	3
Business and corporate banking	68		28		96		23
Global banking	—		13		13		—
Other commercial	1		6		7		1
Total commercial	$	83	$	232	$	315	$	27
At December 31, 2014
Construction and other real estate	$	18	$	179	$	197	$	5
Business and corporate banking	72		18		90		24
Global banking	—		—		—		—
Other commercial	2		6		8		1
Total commercial	$	92	$	203	$	295	$	30

⁽¹⁾  Includes impaired commercial loans that are also considered TDR Loans which totaled $236 million and $210 million at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  The impaired commercial loan balances included in the table above reflect the current carrying amount of the loan and includes all basis adjustments, such as partial charge-offs, unamortized deferred fees and costs on originated loans and any premiums or discounts. The following table reflects the unpaid principal balance of impaired commercial loans included in the table above:

	March 31, 2015		December 31, 2014
	(in millions)
Construction and other real estate	$	223	$	224
Business and corporate banking	101		122
Global banking	13		—
Other commercial	7		8
Total commercial	$	344	$	354

The following table presents information about average impaired commercial loan balances and interest income recognized on the impaired commercial loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Average balance of impaired commercial loans:
Construction and other real estate	$	198	$	297
Business and corporate banking	93		35
Global banking	7		33
Other commercial	8		32
Total average balance of impaired commercial loans	$	306	$	397
Interest income recognized on impaired commercial loans:
Construction and other real estate	$	1	$	6
Business and corporate banking	1		—
Total interest income recognized on impaired commercial loans	$	2	$	6

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Commercial Loan Credit Quality Indicators  The following credit quality indicators are monitored for our commercial loan portfolio:

Criticized loans  Criticized loan classifications are based on the risk rating standards of our regulator. Problem loans are assigned various criticized facility grades. We also assign obligor grades which are used under our allowance for credit losses methodology. The following facility grades are deemed to be criticized:

• Special Mention – generally includes loans that are protected by collateral and/or the credit worthiness of the customer, but are potentially weak based upon economic or market circumstances which, if not checked or corrected, could weaken our credit position at some future date.

• Substandard – includes loans that are inadequately protected by the underlying collateral and/or general credit worthiness of the customer. These loans present a distinct possibility that we will sustain some loss if the deficiencies are not corrected.

• Doubtful – includes loans that have all the weaknesses exhibited by substandard loans, with the added characteristic that the weaknesses make collection or liquidation in full of the recorded loan highly improbable. However, although the possibility of loss is extremely high, certain factors exist which may strengthen the credit at some future date, and therefore the decision to charge off the loan is deferred. Loans graded as doubtful are required to be placed in nonaccruing status.

The following table summarizes criticized commercial loans:

	Special Mention		Substandard		Doubtful		Total
	(in millions)
At March 31, 2015
Construction and other real estate	$	254	$	219	$	1	$	474
Business and corporate banking	1,286		358		24		1,668
Global banking	2,009		197		—		2,206
Other commercial	—		6		1		7
Total commercial	$	3,549	$	780	$	26	$	4,355
At December 31, 2014
Construction and other real estate	$	310	$	230	$	7	$	547
Business and corporate banking	1,001		238		22		1,261
Global banking	1,770		202		—		1,972
Other commercial	1		6		—		7
Total commercial	$	3,082	$	676	$	29	$	3,787

Nonperforming  The following table summarizes the status of our commercial loan portfolio, excluding loans held for sale:

	Performing Loans		Nonaccrual Loans		Accruing Loans Contractually Past Due 90 days or More		Total
	(in millions)
At March 31, 2015
Construction and other real estate	$	10,827	$	74	$	—	$	10,901
Business and corporate banking	19,172		78		1		19,251
Global banking	28,029		—		—		28,029
Other commercial	3,466		—		—		3,466
Total commercial	$	61,494	$	152	$	1	$	61,647
At December 31, 2014
Construction and other real estate	$	10,235	$	65	$	—	$	10,300
Business and corporate banking	17,744		74		1		17,819
Global banking	26,387		—		—		26,387
Other commercial	3,581		—		—		3,581
Total commercial	$	57,947	$	139	$	1	$	58,087

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Credit risk profile  The following table shows the credit risk profile of our commercial loan portfolio:

	Investment Grade(1)		Non-Investment Grade		Total
	(in millions)
At March 31, 2015
Construction and other real estate	$	8,314	$	2,587	$	10,901
Business and corporate banking	9,707		9,544		19,251
Global banking	23,146		4,883		28,029
Other commercial	1,831		1,635		3,466
Total commercial	$	42,998	$	18,649	$	61,647
At December 31, 2014
Construction and other real estate	$	7,820	$	2,480	$	10,300
Business and corporate banking	8,835		8,984		17,819
Global banking	23,400		2,987		26,387
Other commercial	1,873		1,708		3,581
Total commercial	$	41,928	$	16,159	$	58,087

⁽¹⁾  Investment grade includes commercial loans with credit ratings of at least BBB- or above or the equivalent based on our internal credit rating system.

Consumer Loan Credit Quality Indicators   The following credit quality indicators are utilized for our consumer loan portfolio:

Delinquency  The following table summarizes dollars of two-months-and-over contractual delinquency and as a percent of total loans and loans held for sale ("delinquency ratio") for our consumer loan portfolio:

	March 31, 2015				December 31, 2014
	Delinquent Loans		Delinquency Ratio		Delinquent Loans		Delinquency Ratio
	(dollars are in millions)
Residential mortgages(1)(2)	$	957	5.62	%	$	1,013	6.07	%
Home equity mortgages(1)(2)	60		3.50		62		3.48
Credit cards	14		2.06		14		1.94
Other consumer	13		2.53		14		2.52
Total consumer	$	1,044	5.24	%	$	1,103	5.59	%

⁽¹⁾  At March 31, 2015 and December 31, 2014, consumer mortgage loan delinquency includes $908 million and $936 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

⁽²⁾  At March 31, 2015 and December 31, 2014, consumer mortgage loans include $609 million and $608 million, respectively, of loans that were in the process of foreclosure.

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Nonperforming   The following table summarizes the status of our consumer loan portfolio, excluding loans held for sale:

	Performing Loans		Nonaccrual Loans		Accruing Loans Contractually Past Due 90 days or More		Total
	(in millions)
At March 31, 2015
Residential mortgages	$	16,188	$	803	$	—	$	16,991
Home equity mortgages	1,649		67		—		1,716
Credit cards	670		—		10		680
Other consumer	415		—		9		424
Total consumer	$	18,922	$	870	$	19	$	19,811
At December 31, 2014
Residential mortgages	$	15,814	$	847	$	—	$	16,661
Home equity mortgages	1,716		68		—		1,784
Credit cards	710		—		10		720
Other consumer	479		—		10		489
Total consumer	$	18,719	$	915	$	20	$	19,654

Troubled debt restructurings  See discussion of impaired loans above for further details on this credit quality indicator.

Concentration of Credit Risk  At March 31, 2015 and December 31, 2014, our loan portfolio included interest-only residential mortgage loans totaling $3,561 million and $3,531 million, respectively. An interest-only residential mortgage loan allows a customer to pay the interest-only portion of the monthly payment for a period of time which results in lower payments during the initial loan period. However, subsequent events affecting a customer's financial position could affect the ability of customers to repay the loan in the future when the principal payments are required which increases the credit risk of this loan type.

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5.    Allowance for Credit Losses

The following table summarizes the changes in the allowance for credit losses by product and the related loan balance by product during the three months ended March 31, 2015 and 2014:

	Commercial												Consumer
	Construction and Other Real Estate			Business and Corporate Banking			Global Banking			Other Comm’l			Residential Mortgages			Home Equity Mortgages			Credit Card			Other Consumer			Total
	(in millions)
Three Months Ended March 31, 2015
Allowance for credit losses – beginning of period	$	89		$	275		$	107		$	21		$	107		$	32		$	39		$	10		$	680
Provision charged (credited) to income	2			24			21			1			—			(2		)	3			4			53
Charge offs	(1		)	(6		)	—			(1		)	(14		)	(2		)	(8		)	(6		)	(38		)
Recoveries	—			2			—			—			2			1			1			2			8
Net (charge offs) recoveries	(1		)	(4		)	—			(1		)	(12		)	(1		)	(7		)	(4		)	(30		)
Allowance for credit losses – end of period	$	90		$	295		$	128		$	21		$	95		$	29		$	35		$	10		$	703
Ending balance: collectively evaluated for impairment	$	87		$	272		$	128		$	20		$	53		$	28		$	33		$	10		$	631
Ending balance: individually evaluated for impairment	3			23			—			1			42			1			2			—			72
Total allowance for credit losses	$	90		$	295		$	128		$	21		$	95		$	29		$	35		$	10		$	703
Loans:
Collectively evaluated for impairment	$	10,702		$	19,155		$	28,016		$	3,459		$	15,281		$	1,640		$	674		$	424		$	79,351
Individually evaluated for impairment(1)	199			96			13			7			217			5			6			—			543
Loans carried at lower of amortized cost or fair value less cost to sell	—			—			—			—			1,493			71			—			—			1,564
Total loans	$	10,901		$	19,251		$	28,029		$	3,466		$	16,991		$	1,716		$	680		$	424		$	81,458
Three Months Ended March 31, 2014
Allowance for credit losses – beginning of period	$	108		$	112		$	68		$	20		$	186		$	49		$	50		$	13		$	606
Provision charged (credited) to income	2			19			7			(4		)	(16		)	2			5			1			16
Charge offs	(19		)	(5		)	(8		)	—			(17		)	(5		)	(11		)	(2		)	(67		)
Recoveries	2			3			—			3			3			6			1			1			19
Net (charge offs) recoveries	(17		)	(2		)	(8		)	3			(14		)	1			(10		)	(1		)	(48		)
Allowance for credit losses – end of period	$	93		$	129		$	67		$	19		$	156		$	52		$	45		$	13		$	574
Ending balance: collectively evaluated for impairment	$	84		$	126		$	67		$	18		$	96		$	50		$	43		$	13		$	497
Ending balance: individually evaluated for impairment	9			3			—			1			60			2			2			—			77
Total allowance for credit losses	$	93		$	129		$	67		$	19		$	156		$	52		$	45		$	13		$	574
Loans:
Collectively evaluated for impairment	$	8,905		$	15,681		$	21,979		$	3,031		$	14,150		$	1,851		$	674		$	483		$	66,754
Individually evaluated for impairment(1)	260			17			—			20			202			19			9			—			527
Loans carried at lower of amortized cost or fair value less cost to sell	—			—			—			—			1,548			68			—			—			1,616
Total loans	$	9,165		$	15,698		$	21,979		$	3,051		$	15,900		$	1,938		$	683		$	483		$	68,897

⁽¹⁾  For consumer loans and certain small business loans, these amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow analysis is then applied to these groups of TDR Loans. Loans individually evaluated for impairment exclude TDR loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $778 million and $718 million at March 31, 2015 and 2014, respectively.

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6. Loans Held for Sale

Loans held for sale consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Commercial loans	$	291	$	528
Consumer loans:
Residential mortgages	24		18
Other consumer	90		66
Total consumer loans	114		84
Total loans held for sale	$	405	$	612

We originate commercial loans in connection with our participation in a number of syndicated credit facilities with the intent of selling the loans to unaffiliated third parties. We also purchase commercial loans from the secondary market and hold the loans as hedges against our exposure to certain total return swaps. The commercial loans under these programs are classified as commercial loans held for sale and are recorded at fair value as we have elected to designate these loans under the fair value option. The fair value of these commercial loans held for sale was $255 million and $384 million at March 31, 2015 and December 31, 2014, respectively. See Note 10, "Fair Value Option," for additional information.

Commercial loans held for sale also included $34 million and $44 million of global banking loans at March 31, 2015 and December 31, 2014, respectively, which were transferred to held for sale during 2014, as well as commercial real estate loans totaling $2 million and $100 million at March 31, 2015 and December 31, 2014, respectively.

We sell all our agency eligible loan originations servicing released directly to PHH Mortgage Corporation ("PHH Mortgage"). Gains and losses from the sale of residential mortgage loans are reflected as a component of residential mortgage banking revenue in the accompanying consolidated statement of income. Also included in residential mortgage loans held for sale are subprime residential mortgage loans with a fair value of $4 million at both March 31, 2015 and December 31, 2014 which were acquired from unaffiliated third parties and from HSBC Finance Corporation ("HSBC Finance") with the intent of securitizing or selling the loans to third parties.

Loans held for sale are subject to market risk, liquidity risk and interest rate risk, in that their value will fluctuate as a result of changes in market conditions, as well as the credit environment. PHH Mortgage is obligated to purchase agency eligible loans from us as of the earlier of when the customer locks the mortgage loan pricing or when the mortgage loan application is approved. As such, we retain none of the risk of market changes in mortgage rates for these loans.

Other consumer loans held for sale includes student loans which we no longer originate.

Excluding the commercial loans designated under fair value option discussed above, loans held for sale are recorded at the lower of amortized cost or fair value. The valuation allowance on consumer loans held for sale was $12 million and $15 million at March 31, 2015 and December 31, 2014, respectively. The valuation allowance on commercial loans held for sale was $12 million at March 31, 2015 compared with $5 millionallowance at December 31, 2014.

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7. Intangible Assets

Intangible assets consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Mortgage servicing rights	$	140	$	159
Purchased credit card relationships	46		47
Total intangible assets	$	186	$	206

Mortgage Servicing Rights ("MSRs")  A servicing asset is a contract under which estimated future revenues from contractually specified cash flows, such as servicing fees and other ancillary revenues, are expected to exceed the obligation to service the financial assets. We recognize the right to service mortgage loans as a separate and distinct asset at the time they are acquired or when originated loans are sold.

MSRs are subject to credit, prepayment and interest rate risk, in that their value will fluctuate as a result of changes in these economic variables. Interest rate risk is mitigated through an economic hedging program that uses securities and derivatives to offset changes in the fair value of MSRs. Since the hedging program involves trading activity, risk is quantified and managed using a number of risk assessment techniques.

MSRs are initially measured at fair value at the time that the related loans are sold and remeasured at fair value at each reporting date. Changes in fair value of MSRs are reflected in residential mortgage banking revenue in the period in which the changes occur. Fair value is determined based upon the application of valuation models and other inputs. The valuation models incorporate assumptions market participants would use in estimating future cash flows. The reasonableness of these valuation models is periodically validated by reference to external independent broker valuations and industry surveys.

The following table summarizes the critical assumptions used to calculate the fair value of MSRs:

	March 31, 2015		December 31, 2014
Annualized constant prepayment rate ("CPR")	18.2	%	15.9	%
Constant discount rate	14.0	%	14.1	%
Weighted average life (in years)	3.7		4.1

The following table summarizes MSRs activity:

Three Months Ended March 31,	2015			2014
	(in millions)
Fair value of MSRs:
Beginning balance	$	159		$	227
Changes in fair value due to changes in valuation model inputs or assumptions	(11		)	(12		)
Reductions related to customer payments	(8		)	(10		)
Ending balance	$	140		$	205

The outstanding principal balance of serviced for others mortgages, which are not included in the consolidated balance sheet, totaled $22,244 million and $23,101 million at March 31, 2015 and December 31, 2014, respectively.

Servicing fees collected are included in residential mortgage banking revenue and totaled $15 million and $18 million during the three months ended March 31, 2015 and 2014, respectively.

During 2013, we completed the conversion of our mortgage processing and servicing operations to PHH Mortgage. Under the terms of the agreement, PHH Mortgage provides us with mortgage origination processing services as well as the sub-servicing of our portfolio of owned and serviced for others mortgages with an outstanding principal balance of $40,319 million and $40,889 million at March 31, 2015 and December 31, 2014, respectively. Although we continue to own both the mortgages on our balance sheet and the mortgage servicing rights associated with the serviced loans at the time of conversion, we now sell our agency eligible originations to PHH Mortgage on a servicing released basis which results in no new mortgage servicing rights being recognized.

Purchased credit card relationships  In 2012, we purchased from HSBC Finance the account relationships associated with $746 million of credit card receivables which were not included in the sale to Capital One Financial Corporation at a fair value of $108 million. Approximately $43 million of this value was associated with the credit card receivables sold to First Niagara. The remaining

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$65 million was included in intangible assets and is being amortized over the estimated useful life of the credit card relationships which is ten years.

8. Goodwill

Goodwill was $1,612 million at both March 31, 2015 and December 31, 2014. Included in goodwill for these periods were accumulated impairment losses of $670 million. During the first quarter of 2015, there were no events or changes in circumstances to indicate that it is more likely than not that the fair values of any of our reporting units have reduced below their respective carrying amounts.

9. Derivative Financial Instruments

In the normal course of business, the derivative instruments entered into are for trading, market making and risk management purposes. For financial reporting purposes, a derivative instrument is designated in one of the following categories: (a) financial instruments held for trading, (b) hedging instruments designated as a qualifying hedge under derivative and hedge accounting principles or (c) a non-qualifying economic hedge. The derivative instruments held are predominantly swaps, futures, options and forward contracts. All derivatives are stated at fair value. Where we enter into enforceable master netting arrangements with counterparties, the master netting arrangements permit us to net those derivative asset and liability positions and to offset cash collateral held and posted with the same counterparty.

The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting as well as collateral, and therefore are not representative of our exposure. The table below presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting. Derivative assets and liabilities which are not subject to an enforceable master netting agreement, or are subject to a netting agreement that we have not yet determined to be enforceable, have not been netted in the table below. Where we have received or posted collateral under credit support agreements, but have not yet determined such agreements are enforceable, the related collateral also has not been netted in the table below.

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	March 31, 2015				December 31, 2014
	Derivative assets		Derivative liabilities		Derivative assets		Derivative liabilities
	(in millions)
Derivatives accounted for as fair value hedges(1)
OTC-cleared(2)	$	11	$	298	$	1	$	206
Bilateral OTC(2)	3		353		4		268
Interest rate contracts	14		651		5		474
Derivatives accounted for as cash flow hedges(1)
Foreign exchange contracts - bilateral OTC(2)	71		—		45		—
OTC-cleared(2)	8		7		8		6
Bilateral OTC(2)	—		194		—		161
Interest rate contracts	8		201		8		167
Total derivatives accounted for as hedges	93		852		58		641
Trading derivatives not accounted for as hedges(3)
Exchange-traded(2)	30		51		46		43
OTC-cleared(2)	22,608		22,240		16,862		17,557
Bilateral OTC(2)	28,247		28,985		28,370		28,398
Interest rate contracts	50,885		51,276		45,278		45,998
Exchange-traded(2)	22		47		—		13
Bilateral OTC(2)	27,683		26,262		22,219		20,826
Foreign exchange contracts	27,705		26,309		22,219		20,839
Equity contracts - bilateral OTC(2)	1,569		1,568		1,635		1,632
Exchange-traded(2)	33		31		59		18
Bilateral OTC(2)	794		645		1,013		591
Precious metals contracts	827		676		1,072		609
OTC-cleared(2)	635		784		604		730
Bilateral OTC(2)	3,550		3,205		3,518		3,288
Credit contracts	4,185		3,989		4,122		4,018
Other derivatives not accounted for as hedges(1)
Interest rate contracts - bilateral OTC(2)	865		114		768		88
Foreign exchange contracts - bilateral OTC(2)	—		72		—		44
Equity contracts - bilateral OTC(2)	841		157		757		167
Precious metals contracts - bilateral OTC(2)	—		—		—		5
Credit contracts - bilateral OTC(2)	98		9		73		9
Total derivatives	87,068		85,022		75,982		74,050
Less: Gross amounts of receivable / payable subject to enforceable master netting agreements(4)(6)	72,092		72,092		63,913		63,913
Less: Gross amounts of cash collateral received / posted subject to enforceable master netting agreements(5)(6)	6,573		1,084		4,811		1,724
Net amounts of derivative assets / liabilities presented in the balance sheet	8,403		11,846		7,258		8,413
Less: Gross amounts of financial instrument collateral received / posted subject to enforceable master netting agreements but not offset in the consolidated balance sheet	1,273		5,420		1,837		4,398
Net amounts of derivative assets / liabilities	$	7,130	$	6,426	$	5,421	$	4,015

⁽¹⁾  Derivative assets / liabilities related to cash flow hedges, fair value hedges and derivative instruments held for purposes other than for trading are recorded in other assets / interest, taxes and other liabilities on the consolidated balance sheet.

⁽²⁾  Over-the-counter (OTC) derivatives include derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. The credit risk associated with bilateral OTC derivatives is managed through master netting agreements and obtaining collateral. OTC-cleared derivatives are executed bilaterally in the OTC market but then novated to a central clearing counterparty, whereby the central clearing counterparty becomes the counterparty to both of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange

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that provides pre-trade price transparency. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining required by central clearing counterparties.

⁽³⁾  Trading related derivative assets/liabilities are recorded in trading assets/trading liabilities on the consolidated balance sheet.

⁽⁴⁾  Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements.

⁽⁵⁾  Represents the netting of cash collateral posted and received by counterparty under enforceable credit support agreements.

⁽⁶⁾  Netting is performed at a counterparty level in cases where enforceable master netting and credit support agreements are in place, regardless of the type of derivative instrument. Therefore, we have not attempted to allocate netting to the different types of derivative instruments shown in the table above.

See Note 17, "Guarantee Arrangements, Pledged Assets and Collateral," for further information on offsetting related to resale and repurchase agreements and securities borrowing and lending arrangements.

Derivatives Held for Risk Management Purposes  Our risk management policy requires us to identify, analyze and manage risks arising from the activities conducted during the normal course of business. We use derivative instruments as an asset and liability management tool to manage our exposures in interest rate, foreign currency and credit risks in existing assets and liabilities, commitments and forecasted transactions. The accounting for changes in fair value of a derivative instrument will depend on whether the derivative has been designated and qualifies for hedge accounting.

We designate derivative instruments to offset the fair value risk and cash flow risk arising from fixed-rate and floating-rate assets and liabilities as well as forecasted transactions. We assess the hedging relationships, both at the inception of the hedge and on an ongoing basis, using a regression approach to determine whether the designated hedging instrument is highly effective in offsetting changes in the fair value or the cash flows attributable to the hedged risk. Accounting principles for qualifying hedges require us to prepare detailed documentation describing the relationship between the hedging instrument and the hedged item, including, but not limited to, the risk management objective, the hedging strategy and the methods to assess and measure the ineffectiveness of the hedging relationship. We discontinue hedge accounting when we determine that the hedge is no longer highly effective, the hedging instrument is terminated, sold or expired, the designated forecasted transaction is not probable of occurring, or when the designation is removed by us.

Fair Value Hedges  In the normal course of business, we hold fixed-rate loans and securities and issue fixed-rate senior and subordinated debt obligations. The fair value of fixed-rate (U.S. dollar and non-U.S. dollar denominated) assets and liabilities fluctuates in response to changes in interest rates or foreign currency exchange rates. We utilize interest rate swaps, forward and futures contracts and foreign currency swaps to minimize the effect on earnings caused by interest rate and foreign currency volatility.

The changes in the fair value of the hedged item designated in a qualifying hedge are captured as an adjustment to the carrying amount of the hedged item (basis adjustment). If the hedging relationship is terminated and the hedged item continues to exist, the basis adjustment is amortized over the remaining life of the hedged item. We recorded basis adjustments for active fair value hedges which decreased the carrying amount of our debt by less than $1 million during the three months ended March 31, 2015, compared with an increase in the carrying amount of our debt of $1 million during the three months ended March 31, 2014. We amortized $1 million and $3 million of basis adjustments related to terminated and/or re-designated fair value hedge relationships of our debt during the three months ended March 31, 2015 and 2014, respectively. The total accumulated unamortized basis adjustments for terminated fair value hedges amounted to increases in the carrying amount of our debt of $19 million and $21 millionas of March 31, 2015 and December 31, 2014, respectively. Basis adjustments for active fair value hedges of available-for-sale ("AFS") securities increased the carrying amount of the securities by $219 million during the three months ended March 31, 2015, compared with an increase of $176 million during the three months ended March 31, 2014. Total accumulated unamortized basis adjustments for active fair value hedges of available-for-sale securities amounted to an increase in the carrying amount of $638 millionas of March 31, 2015, compared with an increase of $458 millionas of December 31, 2014.

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The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in fair value hedges and the hedged items in fair value hedges and their location on the consolidated statement of income:

	Gain (Loss) on Derivative						Gain (Loss) on Hedged Items					Net Ineffective Gain (Loss) Recognized
	Interest Income (Expense)			Other Income			Interest Income (Expense)			Other Income		Other Income
	(in millions)
Three Months Ended March 31, 2015
Interest rate contracts/AFS Securities	$	(54	)	$	(249	)	$	88		$	240	$	(9	)
Interest rate contracts/subordinated debt	3			—			(11		)	—		—
Total	$	(51	)	$	(249	)	$	77		$	240	$	(9	)
Three Months Ended March 31, 2014
Interest rate contracts/AFS Securities	$	(64	)	$	(219	)	$	102		$	213	$	(6	)
Interest rate contracts/subordinated debt	4			(1		)	(15		)	1		—
Total	$	(60	)	$	(220	)	$	87		$	214	$	(6	)

Cash Flow Hedges  We own or issue floating rate financial instruments and enter into forecasted transactions that give rise to variability in future cash flows. As a part of our risk management strategy, we use interest rate swaps, currency swaps and futures contracts to mitigate risk associated with variability in the cash flows. Changes in fair value of a derivative instrument associated with the effective portion of a qualifying cash flow hedge are recognized initially in other comprehensive income (loss). When the cash flows for which the derivative is hedging materialize and are recorded in income or expense, the associated gain or loss from the hedging derivative previously recorded in accumulated other comprehensive loss is reclassified into earnings in the same accounting period in which the designated forecasted transaction or hedged item affects earnings. If a cash flow hedge of a forecasted transaction is de-designated because it is no longer highly effective, or if the hedge relationship is terminated, the cumulative gain or loss on the hedging derivative to that date will continue to be reported in accumulated other comprehensive loss unless it is probable that the hedged forecasted transaction will not occur by the end of the originally specified time period as documented at the inception of the hedge, at which time the cumulative gain or loss is released into earnings. As of March 31, 2015 and December 31, 2014, active cash flow hedge relationships extend or mature through July 2036. During the three months ended March 31, 2015, $3 million of losses related to terminated and/or re-designated cash flow hedge relationships were amortized to earnings from accumulated other comprehensive loss compared with losses of $1 million during the three months ended March 31, 2014. During the next twelve months, we expect to amortize $11 million of remaining losses to earnings resulting from these terminated and/or re-designated cash flow hedges. The interest accrual related to the derivative contract is recognized in interest income.

The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in cash flow hedges (including amounts recognized in AOCI from all terminated cash flow hedges) and their locations on the consolidated statement of income:

	Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)						Location of Gain (Loss) Reclassified from AOCI into Income  (Effective Portion)	Gain (Loss) Reclassed From AOCI into Income (Effective Portion)						Location of Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion)
	2015			2014				2015			2014				2015		2014
	(in millions)
Three Months Ended March 31,
Foreign exchange contracts	$	—		$	1		Interest income (expense)	$	—		$	—		Other income	$	—	$	—
Interest rate contracts	(33		)	(36		)	Interest income (expense)	(3		)	(1		)	Other income	—		—
Total	$	(33	)	$	(35	)		$	(3	)	$	(1	)		$	—	$	—

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Trading Derivatives and Non-Qualifying Hedging Activities  In addition to risk management, we enter into derivative instruments for trading and market making purposes, to repackage risks and structure trades to facilitate clients’ needs for various risk taking and risk modification purposes. We manage our risk exposure by entering into offsetting derivatives with other financial institutions to mitigate the market risks, in part or in full, arising from our trading activities with our clients. In addition, we also enter into buy-protection credit derivatives with other market participants to manage our counterparty credit risk exposure. Where we enter into derivatives for trading purposes, realized and unrealized gains and losses are recognized in trading revenue or residential mortgage banking revenue. Credit losses arising from counterparty risk on over-the-counter derivative instruments and offsetting buy protection credit derivative positions are recognized as an adjustment to the fair value of the derivatives and are recorded in trading revenue.

We have elected the fair value option for certain fixed rate long-term debt issuances as well as hybrid instruments which include all structured notes and structured deposits and have entered into certain derivative contracts related to these debt issuances and hybrid instruments carried at fair value. These derivative contracts are non-qualifying hedges but are considered economic hedges. We have also entered into credit default swaps which are designated as economic hedges against the credit risks within our loan portfolio. In the event of an impairment loss occurring in a loan that is economically hedged, the impairment loss is recognized as provision for credit losses while the gain on the credit default swap is recorded as other income. In addition, we also from time to time have designated certain forward purchase or sale of to-be-announced ("TBA") securities to economically hedge mortgage servicing rights. Changes in the fair value of TBA positions, which are considered derivatives, are recorded in residential mortgage banking revenue. Derivative instruments designated as economic hedges that do not qualify for hedge accounting are recorded at fair value through profit and loss. Realized and unrealized gains and losses are recognized in gain (loss) on instruments designated at fair value and related derivatives, other income or residential mortgage banking revenue while the derivative asset or liability positions are reflected as other assets or other liabilities.

The following table presents information on gains and losses on derivative instruments held for trading purposes and their locations on the consolidated statement of income:

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended March 31,
		2015			2014
		(in millions)
Interest rate contracts	Trading revenue	$	470		$	61
Interest rate contracts	Residential mortgage banking revenue	24			11
Foreign exchange contracts	Trading revenue	(356		)	25
Equity contracts	Trading revenue	(1		)	—
Precious metals contracts	Trading revenue	46			8
Credit contracts	Trading revenue	(21		)	(7		)
Total		$	162		$	98

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The following table presents information on gains and losses on derivative instruments held for non-qualifying hedging activities and their locations on the consolidated statement of income:

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended March 31,
		2015			2014
		(in millions)
Interest rate contracts	Gain (loss) on instruments designated at fair value and related derivatives	$	109		$	116
Interest rate contracts	Residential mortgage banking revenue	—			—
Foreign exchange contracts	Gain (loss) on instruments designated at fair value and related derivatives	(1		)	4
Equity contracts	Gain (loss) on instruments designated at fair value and related derivatives	257			81
Precious metals contracts	Gain (loss) on instruments designated at fair value and related derivatives	1			16
Credit contracts	Gain (loss) on instruments designated at fair value and related derivatives	—			1
Credit contracts	Other income	22			(4		)
Total		$	388		$	214

Credit-Risk Related Contingent Features  We enter into total return swap, interest rate swap, cross-currency swap and credit default swap contracts, amongst others which contain provisions that require us to maintain a specific credit rating from each of the major credit rating agencies. Sometimes the derivative instrument transactions are a part of broader structured product transactions. If HSBC Bank USA, National Association's ("HSBC Bank USA") credit ratings were to fall below the current ratings, the counterparties to our derivative instruments could demand us to post additional collateral. The amount of additional collateral required to be posted will depend on whether HSBC Bank USA is downgraded by one or more notches. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position as of March 31, 2015, was $8,862 million for which we had posted collateral of $7,751 million. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position as of December 31, 2014, was $7,006 million for which we had posted collateral of $6,136 million. Substantially all of the collateral posted is in the form of cash or securities available-for-sale. See Note 17, "Guarantee Arrangements, Pledged Assets and Collateral," for further details.

The following tables summarize our obligation to post additional collateral (from the current collateral level) in certain hypothetical commercially reasonable downgrade scenarios of our long term ratings. It is not appropriate to accumulate or extrapolate information presented in the tables below to determine our total obligation because the information presented to determine the obligation in hypothetical rating scenarios is not mutually exclusive.

	Single-notch downgrade		Two-notch downgrade
Moody’s	A2		A3
	(in millions)
Amount of additional collateral to be posted upon downgrade	$	47	$	414

	Single-notch downgrade		Two-notch downgrade
Standard & Poor's ("S&P")	A+		A
	(in millions)
Amount of additional collateral to be posted upon downgrade	$	—	$	47

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Notional Value of Derivative Contracts  The following table summarizes the notional values of derivative contracts:

	March 31, 2015		December 31, 2014
	(in millions)
Interest rate:
Futures and forwards	$	143,809	$	87,406
Swaps	2,913,021		3,096,382
Options written	77,549		70,903
Options purchased	99,543		83,524
	3,233,922		3,338,215
Foreign Exchange:
Swaps, futures and forwards	912,060		866,835
Options written	105,858		117,088
Options purchased	101,442		118,350
Spot	63,229		58,700
	1,182,589		1,160,973
Commodities, equities and precious metals:
Swaps, futures and forwards	46,163		48,263
Options written	16,324		18,015
Options purchased	20,637		23,452
	83,124		89,730
Credit derivatives	237,549		240,737
Total	$	4,737,184	$	4,829,655

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HSBC USA Inc.

10. Fair Value Option

We report our results to HSBC in accordance with HSBC Group accounting and reporting policies ("Group Reporting Basis"), which apply International Financial Reporting Standards ("IFRS"). We typically have elected to apply fair value option ("FVO") accounting to selected financial instruments to align the measurement attributes of those instruments under U.S. GAAP and the Group Reporting Basis and to simplify the accounting model applied to those financial instruments. We elected to apply FVO reporting to certain commercial loans held for sale, certain fixed rate long-term debt issuances and hybrid instruments which include all structured notes and structured deposits. Changes in fair value for these assets and liabilities are reported as gain (loss) on instruments designated at fair value and related derivatives in the consolidated statement of income.

Loans  We elected to apply FVO accounting to certain commercial syndicated loans which are originated with the intent to sell and certain commercial loans that we purchased from the secondary market and hold as hedges against our exposure to certain total return swaps and include these loans as loans held for sale in the consolidated balance sheet. The election allows us to account for these loans at fair value which is consistent with the manner in which the instruments are managed. Interest from these loans is recorded as interest income in the consolidated statement of income. Because a substantial majority of the loans elected for the fair value option are floating rate assets, changes in their fair value are primarily attributable to changes in loan-specific credit risk factors. The components of gain (loss) related to loans designated at fair value are summarized in the table below. As of March 31, 2015 and December 31,2014, no loans for which the fair value option has been elected are 90 days or more past due or on nonaccrual status.

Long-Term Debt (Own Debt Issuances)  We elected to apply FVO accounting for certain fixed-rate long-term debt for which we had applied or otherwise would elect to apply fair value hedge accounting. The election allows us to achieve a similar accounting effect without having to meet the hedge accounting requirements. The own debt issuances elected under FVO are traded in secondary markets and, as such, the fair value is determined based on observed prices for the specific instruments. The observed market price of these instruments reflects the effect of changes to our own credit spreads and interest rates. Interest on the fixed-rate debt accounted for under FVO is recorded as interest expense in the consolidated statement of income. The components of gain (loss) related to long-term debt designated at fair value are summarized in the table below.

Hybrid Instruments  We elected to apply FVO accounting to all of our hybrid instruments issued, inclusive of structured notes and structured deposits. The valuation of the hybrid instruments is predominantly driven by the derivative features embedded within the instruments. Cash flows of the hybrid instruments are discounted at an appropriate rate for the applicable duration of the instrument adjusted for our own credit spreads. The credit spreads applied to structured notes are determined with reference to our own debt issuance rates observed in the primary and secondary markets, internal funding rates, and structured note rates in recent executions while the credit spreads applied to structured deposits are determined using market rates currently offered on comparable deposits with similar characteristics and maturities. Interest on this debt is recorded as interest expense in the consolidated statement of income. The components of gain (loss) related to hybrid instruments designated at fair value which reflect the instruments described above are summarized in the table below.

The following table summarizes the fair value and unpaid principal balance for items we account for under FVO:

	Fair Value		Unpaid Principal Balance
	(in millions)
At March 31, 2015
Commercial loans held for sale	$	255	$	270
Fixed rate long-term debt	2,191		1,750
Hybrid instruments:
Structured deposits	6,948		6,768
Structured notes	6,842		6,466
At December 31, 2014
Commercial loans held for sale	$	384	$	390
Fixed rate long-term debt	2,179		1,750
Hybrid instruments:
Structured deposits	7,346		7,176
Structured notes	6,612		6,275

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Components of Gain (Loss) on Instruments at Fair Value and Related Derivatives  Gain (loss) on instruments designated at fair value and related derivatives includes the changes in fair value related to interest, credit and other risks as well as the mark-to-market adjustment on derivatives related to the financial instrument designated at fair value and net realized gains or losses on these derivatives. The following table summarizes the components of gain (loss) on instruments designated at fair value and related derivatives related to the changes in fair value of the financial instrument accounted for under FVO:

	Loans			Long-Term Debt			Hybrid Instruments			Total
	(in millions)
Three Months Ended March 31, 2015
Interest rate and other components(1)	$	—		$	(82	)	$	(288	)	$	(370	)
Credit risk component(2)(3)	(10		)	70			29			89
Total mark-to-market on financial instruments designated at fair value	(10		)	(12		)	(259		)	(281		)
Net realized loss on financial instruments	—			—			—			—
Mark-to-market on the related derivatives	—			70			279			349
Net realized gain on the related long-term debt derivatives	—			17			—			17
Gain (loss) on instruments designated at fair value and related derivatives	$	(10	)	$	75		$	20		$	85
Three Months Ended March 31, 2014
Interest rate and other components(1)	$	—		$	(82	)	$	(153	)	$	(235	)
Credit risk component(2)(3)	—			19			26			45
Total mark-to-market on financial instruments designated at fair value	—			(63		)	(127		)	(190		)
Net realized loss on financial instruments	—			—			—			—
Mark-to-market on the related derivatives	—			70			131			201
Net realized gain on the related long-term debt derivatives	—			17			—			17
Gain (loss) on instruments designated at fair value and related derivatives	$	—		$	24		$	4		$	28

⁽¹⁾  As it relates to hybrid instruments, interest rate and other components includes interest rate, foreign exchange and equity contract risks.

⁽²⁾  During the first quarter of 2015 and 2014, the gains in the credit risk component for long-term debt were attributable to the widening of our own credit spreads.

⁽³⁾  During the first quarter of 2015, the gain in the credit risk component for hybrid instruments is attributable primarily to the widening of our own credit spreads related to structured notes while the gain during the first quarter of 2014 was attributable primarily to the widening of our own credit spreads related to structured notes partially offset by the tightening of credit spreads on structured deposits.

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11. Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss includes certain items that are reported directly within a separate component of shareholders’ equity. The following table presents changes in accumulated other comprehensive loss balances:

Three Months Ended March 31,	2015			2014
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	158		$	(18	)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(11) million and $93 million, respectively	(19		)	144
Reclassification adjustment for gains realized in net income, net of tax of $(9) million and $(9) million, respectively(1)	(14		)	(14		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of $3 million(2)	5			—
Total other comprehensive income (loss) for period	(28		)	130
Balance at end of period	130			112
Unrealized losses on other-than-temporarily impaired debt securities held-to-maturity:
Balance at beginning of period	—			(60		)
Other comprehensive income for period:
Reclassification adjustment related to the accretion of unrealized other-than-temporary impairment, net of tax of $1 million(3)	—			1
Total other comprehensive income for period	—			1
Balance at end of period	—			(59		)
Unrealized losses on derivatives designated as cash flow hedges:
Balance at beginning of period	(156		)	(83		)
Other comprehensive loss for period:
Net unrealized losses arising during period, net of tax of $(12) million and $(13) million, respectively	(21		)	(21		)
Reclassification adjustment for losses realized in net income, net of tax of $1 million and less than $1 million, respectively(4)	2			1
Total other comprehensive loss for period	(19		)	(20		)
Balance at end of period	(175		)	(103		)
Pension and postretirement benefit liability:
Balance at beginning of period	(3		)	2
Other comprehensive income for period:
Change in unfunded pension and postretirement liability, net of tax of less than $1 million	1			—
Total other comprehensive income for period	1			—
Balance at and end of period	(2		)	2
Total accumulated other comprehensive loss at end of period	$	(47	)	$	(48	)

⁽¹⁾  Amount reclassified to net income is included in other securities gains, net in our consolidated statement of income.

⁽²⁾  Amount amortized to net income is included in interest income in our consolidated statement of income. During the third quarter of 2014, we transferred securities from available-for-sale to held-to-maturity. At the date of transfer, AOCI included net pretax unrealized losses of $234 million related to the transferred securities which will be amortized over the remaining contractual life of each security as an adjustment of yield in a manner consistent with the amortization of any premium or discount.

⁽³⁾  Amount reclassified to the carrying value of the debt securities is included in securities held-to-maturity in our consolidated balance sheet.

⁽⁴⁾  Amount reclassified to net income is included in interest income (expense) in our consolidated statement of income.

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HSBC USA Inc.

12. Pension and Other Postretirement Benefits

Defined Benefit Pension Plan  The components of pension expense for the defined benefit pension plan recorded in our consolidated statement of income and shown in the table below reflect the portion of pension expense of the combined HSBC North America Pension Plan (either the "HBSC North America Pension Plan" or the "Plan") which has been allocated to us.

Three Months Ended March 31,	2015			2014
	(in millions)
Service cost – benefits earned during the period	$	2		$	1
Interest cost on projected benefit obligation	17			18
Expected return on plan assets	(23		)	(20		)
Amortization of net actuarial loss	9			9
Pension expense	$	5		$	8

During the first quarter of 2015, HSBC North America made an additional contribution of $46 million to the Plan.

Postretirement Plans Other Than Pensions  The components of net periodic benefit cost for our postretirement plans other than pension are as follows:

Three Months Ended March 31,	2015		2014
	(in millions)
Interest cost on accumulated benefit obligation	1		1
Net periodic postretirement benefit cost	$	1	$	1

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HSBC USA Inc.

13. Related Party Transactions

In the normal course of business, we conduct transactions with HSBC and its subsidiaries. These transactions occur at prevailing market rates and terms and include funding arrangements, derivative, servicing arrangements, information technology, centralized support services, banking and other miscellaneous services. All extensions of credit by (and certain credit exposures of) HSBC Bank USA to other HSBC affiliates (other than Federal Deposit Insurance Corporation ("FDIC") insured banks) are legally required to be secured by eligible collateral. The following tables and discussions below present the more significant related party balances and the income (expense) generated by related party transactions:

	March 31, 2015		December 31, 2014
	(in millions)
Assets:
Cash and due from banks	$	171	$	140
Interest bearing deposits with banks(1)	1,017		928
Trading assets(2)	21,048		20,194
Loans	5,016		4,821
Other(3)	1,082		983
Total assets	$	28,334	$	27,066
Liabilities:
Deposits	$	15,688	$	16,596
Trading liabilities(2)	22,478		21,130
Short-term borrowings	1,676		847
Long-term debt	—		3,981
Other(3)	387		459
Total liabilities	$	40,229	$	43,013

⁽¹⁾  Includes interest bearing deposits with HSBC Mexico S.A. of $800 million at both March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  Trading assets and trading liabilities do not reflect the impact of netting which allows the offsetting of amounts relating to certain contracts if certain conditions are met. Trading assets and liabilities primarily consist of derivatives contracts.

⁽³⁾  Other assets and other liabilities primarily consist of derivative contracts.

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HSBC USA Inc.

Three Months Ended March 31,	2015			2014
	(in millions)
Income/(Expense):
Interest income	$	30		$	14
Interest expense	(14		)	(18		)
Net interest income (expense)	16			(4		)
Trading revenue	148			852
Servicing and other fees from HSBC affiliates:
HSBC Bank Plc	19			16
HSBC Finance Corporation	16			15
HSBC Markets (USA) Inc. ("HMUS")	7			4
Other HSBC affiliates	14			12
Total servicing and other fees from HSBC affiliates	56			47
Gain (loss) on instruments designed at fair value and related derivatives	258			98
Support services from HSBC affiliates:
HMUS	(64		)	(57		)
HSBC Technology & Services (USA) ("HTSU")	(240		)	(253		)
Other HSBC affiliates	(48		)	(44		)
Total support services from HSBC affiliates	(352		)	(354		)
Stock based compensation expense with HSBC(1)	(13		)	(7		)

⁽¹⁾  Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income. Employees also may participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 12, "Pension and Other Postretirement Benefits."

Funding Arrangements with HSBC Affiliates:

We use HSBC affiliates to fund a portion of our borrowing and liquidity needs. At December 31, 2014, long-term debt with affiliates reflected $4.0 billion in floating rate senior debt with HSBC North America. During the first quarter of 2015, we repaid this debt in full. See Note 15, "Retained Earnings and Regulatory Capital Requirements," for additional details.

We have the following funding arrangements available with HSBC affiliates, although there were no outstanding balances at either March 31, 2015 or December 31, 2014:

• $805 million committed line of credit with HSBC Investment (Bahamas) Limited; and

• $150 million uncommitted line of credit with HSBC North America Inc. ("HNAI").

We have also incurred short-term borrowings with certain affiliates. In addition, certain affiliates have also placed deposits with us.

Lending and Derivative Related Arrangements Extended to HSBC Affiliates:

At March 31, 2015 and December 31, 2014, we have the following loan balances outstanding with HSBC affiliates:

	March 31, 2015		December 31, 2014
	(in millions)
HSBC Finance Corporation	$	3,014	$	3,014
HSBC Markets (USA) Inc. ("HMUS") and subsidiaries	764		563
HSBC Bank Brasil S.A.	1,110		1,108
Other short-term affiliate lending	128		136
Total loans	$	5,016	$	4,821

HSBC Finance Corporation We have extended a $5.0 billion, 364-day uncommitted unsecured revolving credit agreement to HSBC Finance which expires during the fourth quarter of 2015. The credit agreement allows for borrowings with maturities of up to 5 years.At both March 31, 2015and December 31, 2014, $3.0 billion was outstanding under this credit agreement with $512 million maturing in September 2017, $1.5 billion maturing in January 2018 and $1.0 billion maturing in September 2018. We have

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HSBC USA Inc.

also extended a committed revolving credit facility to HSBC Finance of $1.0 billion which did not have any outstanding balance at either March 31, 2015 or December 31, 2014. This credit facility expires in May 2017.

HMUS and subsidiaries We have extended loans and lines, some of them uncommitted, to HMUS and its subsidiaries in the amount of $6.7 billion at both March 31, 2015 and December 31, 2014, respectively, of which $764 million and $563 million, respectively, was outstanding. The outstanding balances mature in May 2015.

HSBC Bank Brasil S.A. We have extended uncommitted lines of credit to HSBC Bank Brasil in the amount of $1.2 billion of which $1.1 billion was outstanding at both March 31, 2015 and December 31, 2014, respectively. The outstanding balances mature at various stages between 2016 and 2018.

We have extended lines of credit to various other HSBC affiliates totaling$2.3 billionwhich did not have any outstanding balances at eitherMarch 31, 2015 and December 31, 2014.

Other short-term affiliate lending In addition to loans and lines extended to affiliates discussed above, from time to time we may extend loans to affiliates which are generally short term in nature. At March 31, 2015 and December 31, 2014, there were $128 million and $136 million, respectively, of these loans outstanding.

HUSI is also committed to provide liquidity facilities to backstop the liquidity risk in Regency, an asset-backed commercial paper conduit consolidated by an HSBC affiliate, in relation to assets originated in the U.S. The notional amount of the liquidity facilities provided by HUSI to Regency was approximately $2.7 billion as of March 31, 2015, which is less than half of Regency's total liquidity facilities.

As part of a global HSBC strategy to offset interest rate or other market risks associated with certain securities, debt issues and derivative contracts with unaffiliated third parties, we routinely enter into derivative transactions with HSBC Finance, HSBC Bank plc and other HSBC affiliates. The notional value of derivative contracts related to these transactions was approximately $1,063.2 billion and $1,082.6 billion at March 31, 2015 and December 31, 2014, respectively. The net credit exposure (defined as the net fair value of derivative assets and liabilities) related to the contracts was approximately $1,089 million and $1,166 million at March 31, 2015 and December 31, 2014, respectively. Our Global Banking and Markets business accounts for these transactions on a mark to market basis, with the change in value of contracts with HSBC affiliates substantially offset by the change in value of related contracts entered into with unaffiliated third parties.

Services Provided Between HSBC Affiliates:

Under multiple service level agreements, we provide services to and receive services from various HSBC affiliates. The following summarizes these activities:

• Servicing activities for residential mortgage loans across North America are performed both by us and HSBC Finance. As a result, we receive servicing fees from HSBC Finance for services performed on their behalf and pay servicing fees to HSBC Finance for services performed on our behalf. The fees we receive from HSBC Finance are reported in servicing and other fees from HSBC affiliates. Fees we pay to HSBC Finance are reported in support services from HSBC affiliates. This includes fees paid for the servicing of residential mortgage loans (with a carrying amount of $804 million and $837 million at March 31, 2015 and December 31, 2014, respectively) that we purchased from HSBC Finance in 2003 and 2004.

• HSBC North America's technology and certain centralized support services including human resources, corporate affairs, risk management, legal, compliance, tax, finance and other shared services that are centralized within HTSU. HTSU also provides certain item processing and statement processing activities to us. The fees we pay HTSU for the centralized support services and processing activities are included in support services from HSBC affiliates. We also receive fees from HTSU for providing certain administrative services to them. The fees we receive from HTSU are included in servicing and other fees from HSBC affiliates. In certain cases, for facilities used by HTSU, we may guarantee their performance under the lease agreements.

• We use HSBC Global Resourcing (UK) Ltd., an HSBC affiliate located outside of the United States, to provide various support services to our operations including among other areas, customer service, systems, collection and accounting functions. The expenses related to these services are included in support services from HSBC affiliates.

• We utilize HSBC Securities (USA) Inc. ("HSI") for broker dealer, debt underwriting, customer referrals, loan syndication and other treasury and traded markets related services, pursuant to service level agreements. Fees charged by HSI for broker dealer, loan syndication services, treasury and traded markets related services are included in support services from HSBC affiliates. Debt underwriting fees charged by HSI are deferred as a reduction of long-term debt and amortized to interest expense over the life of the related debt. Customer referral fees paid to HSI are netted against customer fee income, which is included in other fees and commissions.

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Other Transactions with HSBC Affiliates

We received revenue from our affiliates for rent on certain office space, which has been recorded as a component of support services from HSBC affiliates. Rental revenue from our affiliates totaled $15 million and $14 million during the three months ended March 31, 2015 and 2014, respectively.

14. Business Segments

We have four distinct business segments that we utilize for management reporting and analysis purposes, which are aligned with HSBC's global businesses and business strategy: Retail Banking and Wealth Management ("RBWM"), Commercial Banking ("CMB"), Global Banking and Markets ("GB&M") and Private Banking ("PB"). There have been no changes in the basis of our segmentation or measurement of segment profit as compared with the presentation in our 2014 Form 10-K.

Our segment results are presented in accordance with HSBC Group accounting and reporting policies, which apply International Financial Reporting Standards ("IFRS") and, as a result, our segment results are prepared and presented using financial information prepared on the basis of HSBC Group's accounting and reporting policies ("Group Reporting Basis") (a non-U.S. GAAP financial measure) as operating results are monitored and reviewed, trends are evaluated and decisions about allocating resources, such as employees, are primarily made on this basis. However, we continue to monitor capital adequacy, establish dividend policy and report to regulatory agencies on a U.S. GAAP basis.

We are currently in the process of re-evaluating the financial information used to manage our businesses, including the scope and content of the U.S. GAAP financial data being reported to our Management and our Board. To the extent we make changes to this reporting in 2015, we will evaluate any impact such changes may have on our segment reporting.

A summary of differences between U.S. GAAP and Group Reporting Basis as they impact our results are presented in Note 23, "Business Segments," in our 2014 Form 10-K. There have been no significant changes since December 31, 2014 in the differences between U.S. GAAP and Group Reporting Basis.

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The following table summarizes the results for each segment on a Group Reporting Basis, as well as provides a reconciliation of total results under the Group Reporting Basis to U.S. GAAP consolidated totals:

	Group Reporting Basis Consolidated Amounts
	RBWM			CMB		GB&M		PB			Other			Adjustments/ Reconciling Items			Total		Group Reporting Basis Adjustments(3)			Group Reporting Basis Reclassi- fications(4)			U.S. GAAP Consolidated Totals
	(in millions)
Three Months Ended March 31, 2015
Net interest income(1)	$	197		$	201	$	118	$	49		$	(6	)	$	(5	)	$	554	$	(14	)	$	66		$	606
Other operating income	87			77		266		24			82			5			541		(10		)	(67		)	464
Total operating income	284			278		384		73			76			—			1,095		(24		)	(1		)	1,070
Loan impairment charges	22			10		8		—			—			—			40		14			(1		)	53
	262			268		376		73			76			—			1,055		(38		)	—			1,017
Operating expenses(2)	281			169		259		58			27			—			794		(17		)	—			777
Profit (loss) before income tax expense	$	(19	)	$	99	$	117	$	15		$	49		$	—		$	261	$	(21	)	$	—		$	240
Balances at end of period:
Total assets	$	19,856		$	30,788	$	198,942	$	8,121		$	804		$	—		$	258,511	$	(56,958	)	$	41		$	201,594
Total loans, net	16,902			29,649		23,341		6,424			—			—			76,316		891			3,548			80,755
Goodwill	581			358		—		325			—			—			1,264		348			—			1,612
Total deposits	29,240			22,209		38,891		10,973			—			—			101,313		(5,975		)	23,756			119,094
Three Months Ended March 31, 2014
Net interest income(1)	$	198		$	187	$	97	$	49		$	(13	)	$	(5	)	$	513	$	(15	)	$	21		$	519
Other operating income	113			68		294		25			25			5			530		(4		)	(26		)	500
Total operating income	311			255		391		74			12			—			1,043		(19		)	(5		)	1,019
Loan impairment charges	2			7		15		(5		)	—			—			19		4			(7		)	16
	309			248		376		79			12			—			1,024		(23		)	2			1,003
Operating expenses(2)	279			158		239		55			25			—			756		(8		)	2			750
Profit (loss) before income tax expense	$	30		$	90	$	137	$	24		$	(13	)	$	—		$	268	$	(15	)	$	—		$	253
Balances at end of period:
Total assets	$	19,143		$	25,594	$	181,545	$	8,231		$	723		$	—		$	235,236	$	(47,888	)	$	(174	)	$	187,174
Total loans, net	16,177			24,509		17,485		6,022			—			—			64,193		1,411			2,719			68,323
Goodwill	581			358		—		325			—			—			1,264		348			—			1,612
Total deposits	30,206			21,254		30,126		12,529			—			—			94,115		(3,247		)	14,663			105,531

⁽¹⁾  Net interest income of each segment represents the difference between actual interest earned on assets and interest paid on liabilities of the segment adjusted for a funding charge or credit. Segments are charged a cost to fund assets (e.g. customer loans) and receive a funding credit for funds provided (e.g. customer deposits) based on equivalent market rates. The objective of these charges/credits is to transfer interest rate risk from the segments to one centralized unit in Balance Sheet Management and more appropriately reflect the profitability of segments.

⁽²⁾  Expenses for the segments include fully apportioned corporate overhead expenses.

⁽³⁾  Represents adjustments associated with differences between the Group Reporting Basis and the U.S. GAAP basis of accounting.

⁽⁴⁾  Represents differences in financial statement presentation between Group Reporting Basis and U.S. GAAP.

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15. Retained Earnings and Regulatory Capital Requirements

Bank dividends are a major source of funds used for payment by us of shareholder dividends and, along with interest earned on investments, cover our operating expenses which consist primarily of interest on outstanding debt. Any significant dividend from HSBC Bank USA would require the approval of the Office of the Comptroller of the Currency. Approval is also required if the total of all dividends HSBC Bank USA declares in any year exceeds the cumulative net profits for that year, combined with the profits for the two preceding years reduced by dividends attributable to those years. Under a separate restriction, payment of dividends is prohibited in amounts greater than undivided profits then on hand, after deducting actual losses and bad debts. Bad debts are debts due and unpaid for a period of six months unless well secured, as defined, and in the process of collection.

The following table summarizes the capital amounts and ratios of HSBC USA and HSBC Bank USA, calculated in accordance with banking regulations in effect as of March 31, 2015 and December 31, 2014:

	March 31, 2015							December 31, 2014
	Capital Amount		Well-Capitalized  Ratio(1)			Actual Ratio		Capital Amount		Well-Capitalized Ratio(1)			Actual Ratio
	(dollars are in millions)
Total capital ratio:(3)
HSBC USA	$	24,732	10.00	%		16.34	%	$	21,017	10.00	%		15.78	%
HSBC Bank USA	26,916		10.00			18.55		22,760		10.00			17.86
Tier 1 capital ratio:(3)
HSBC USA	19,089		6.00			12.61		15,205		6.00			11.41
HSBC Bank USA	22,246		8.00			15.33		17,215		8.00			13.51
Common equity Tier 1 ratio:(3)
HSBC USA	17,830		4.50		(2)	11.78		13,754		4.50		(2)	10.33
HSBC Bank USA	19,863		6.50			13.69		17,215		6.50			13.51
Tier 1 leverage ratio:
HSBC USA	19,089		4.00		(2)	9.91		15,205		4.00		(2)	8.54
HSBC Bank USA	22,246		5.00			12.02		17,215		5.00			10.06
Risk weighted assets:(3)
HSBC USA	151,347							133,211
HSBC Bank USA	145,121							127,456

⁽¹⁾  HSBC USA and HSBC Bank USA are categorized as "well-capitalized," as defined by their principal regulators. To be categorized as well-capitalized under regulatory guidelines, a banking institution must have the ratios reflected in the above table, and must not be subject to a directive, order, or written agreement to meet and maintain specific capital levels. The regulatory ratios for an institution to be well-capitalized under Basel III became effective beginning January 1, 2015 and the new ratios are shown for both periods.

⁽²⁾  There are no common equity Tier 1 or Tier 1 leverage ratio components in the definition of a well-capitalized bank holding company. The ratios shown in both periods are the required regulatory minimum ratios beginning in 2015.

⁽³⁾  At March 31, 2015, risk weighted assets are calculated under the Basel III Standardized Approach, which replaced the Basel I risk-based guidance for determining risk weighted assets beginning January 1, 2015.

In 2013, U.S. banking regulators issued a final rule implementing the Basel III capital framework in the U.S. which, for banking organizations such as HSBC North America and HSBC Bank USA, took effect January 1, 2014 with certain provisions being phased in over time through the beginning of 2019. As a result, the capital ratios in the table above are reported in accordance with the Basel III transition rules within the final rule. In addition, the Basel III final rule introduced the Standardized Approach for risk weighted assets, which replaced the Basel I risk-based guidance for determining risk weighted assets beginning January 1, 2015.

During the first quarter of 2015, HSBC USA repaid $4,000 million of senior long-term debt previously issued to HSBC North America and HSBC Bank USA repaid $900 million of subordinated long-term debt previously issued to HSBC USA. In conjunction with these repayments, HSBC USA received a capital contribution of $4,000 million from its immediate parent, HNAI, in exchange for one share of common stock and HSBC USA made capital contributions to its subsidiary, HSBC Bank USA, of $2,400 million in exchange for two shares of common stock and $2,500 million in exchange for 250 shares of non-cumulative preferred stock. These capital actions were taken to support our growth strategy and to strengthen the Basel III regulatory capital positions of both HSBC USA and HSBC Bank USA.

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16. Variable Interest Entities

In the ordinary course of business, we have organized special purpose entities ("SPEs") primarily to structure financial products to meet our clients' investment needs, to facilitate clients to access and raise financing from capital markets and to securitize financial assets held to meet our own funding needs. For disclosure purposes, we aggregate SPEs based on the purpose, risk characteristics and business activities of the SPEs. An SPE is a VIE if it lacks sufficient equity investment at risk to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack either a) the power through voting or similar rights to direct the activities of the entity that most significantly impacts the entity's economic performance; or b) the obligation to absorb the entity's expected losses, the right to receive the expected residual returns, or both.

Variable Interest Entities  We consolidate VIEs in which we hold a controlling financial interest as evidenced by the power to direct the activities of a VIE that most significantly impact its economic performance and the obligation to absorb losses of, or the right to receive benefits from, the VIE that could be potentially significant to the VIE and therefore are deemed to be the primary beneficiary. We take into account our entire involvement in a VIE (explicit or implicit) in identifying variable interests that individually or in the aggregate could be significant enough to warrant our designation as the primary beneficiary and hence require us to consolidate the VIE or otherwise require us to make appropriate disclosures. We consider our involvement to be significant where we, among other things, (i) provide liquidity put options or other liquidity facilities to support the VIE's debt obligations; (ii) enter into derivative contracts to absorb the risks and benefits from the VIE or from the assets held by the VIE; (iii) provide a financial guarantee that covers assets held or liabilities issued; (iv) design, organize and structure the transaction; and (v) retain a financial or servicing interest in the VIE.

We are required to evaluate whether to consolidate a VIE when we first become involved and on an ongoing basis. In almost all cases, a qualitative analysis of our involvement in the entity provides sufficient evidence to determine whether we are the primary beneficiary. In rare cases, a more detailed analysis to quantify the extent of variability to be absorbed by each variable interest holder is required to determine the primary beneficiary.

Consolidated VIEs  The following table summarizes assets and liabilities related to our consolidated VIEs as of March 31, 2015 and December 31, 2014 which are consolidated on our balance sheets. Assets and liabilities exclude intercompany balances that eliminate on consolidation.

	March 31, 2015				December 31, 2014
	Consolidated Assets		Consolidated Liabilities		Consolidated Assets		Consolidated Liabilities
	(in millions)
Low income housing limited liability partnership:
Other assets	$	372	$	—	$	380	$	—
Long-term debt	—		92		—		92
Interest, taxes and other liabilities	—		86		—		75
Total	$	372	$	178	$	380	$	167

Low income housing limited liability partnershipIn 2009, all low income housing investments held by us at the time were transferred to a Limited Liability Partnership ("LLP") in exchange for debt and equity while a third party invested cash for an equity interest that is mandatorily redeemable at a future date. The LLP was created in order to ensure the utilization of future tax benefits from these low income housing tax projects. The LLP was deemed to be a VIE as it does not have sufficient equity investment at risk to finance its activities. Upon entering into this transaction, we concluded that we are the primary beneficiary of the LLP due to the nature of our continuing involvement and, as a result, consolidate the LLP and report the equity interest issued to the third party investor in other liabilities and the assets of the LLP in other assets on our consolidated balance sheet. The investments held by the LLP represent equity investments in the underlying low income housing partnerships. As a practical expedient, we amortize the investments in proportion to the allocated tax benefits under the proportional amortization method of accounting. The LLP does not consolidate the underlying partnerships because it does not have the power to direct the activities of the partnerships that most significantly impact the economic performance of the partnerships.

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Unconsolidated VIEs  We also have variable interests in other VIEs that are not consolidated because we are not the primary beneficiary. The following table provides additional information on these unconsolidated VIEs, including the variable interests held by us and our maximum exposure to loss arising from our involvements in these VIEs, as of March 31, 2015 and December 31, 2014:

	Variable Interests Held Classified as Assets		Variable Interests Held Classified as Liabilities		Total Assets in Unconsolidated VIEs		Maximum Exposure to Loss
	(in millions)
At March 31, 2015
Asset-backed commercial paper conduits	$	50	$	—	$	10,761	$	2,710
Structured note vehicles	2,848		7		5,876		5,868
Low income housing partnerships	44		38		141		44
Total	$	2,942	$	45	$	16,778	$	8,622
At December 31, 2014
Asset-backed commercial paper conduits	$	29	$	—	$	10,984	$	2,685
Structured note vehicles	2,841		7		5,867		5,860
Low income housing partnerships	44		39		141		44
Total	$	2,914	$	46	$	16,992	$	8,589

Information on the types of variable interest entities with which we are involved, the nature of our involvement and the variable interests held in those entities is presented below.

Asset-backed commercial paper ("ABCP") conduitsWe provide liquidity facilities to Regency, a multi-seller ABCP conduit consolidated by an HSBC affiliate. Customers sell financial assets, such as trade receivables, to Regency, which funds the purchases by issuing short-term highly-rated commercial paper collateralized by the assets acquired. We, along with other financial institutions, provide liquidity facilities to Regency in the form of lines of credit or asset purchase commitments. These liquidity facilities support transactions associated with a specific seller of assets to the conduit and we would only be required to provide support in the event of certain triggers associated with those transactions and assets. Our obligations are generally pari passu with those of other institutions that also provide liquidity support to the same conduit or for the same transactions. We do not provide any program-wide credit enhancements to ABCP conduits.

Each seller of assets to an ABCP conduit typically provides credit enhancements in the form of asset overcollateralization and, therefore, bears the risk of first loss related to the specific assets transferred. We do not transfer our own assets to Regency. We also do not provide the majority of the liquidity facilities to Regency. We have no ownership interests in, perform no administrative duties for, and do not service any of the assets held by Regency. We are not the primary beneficiary and do not consolidate Regency. Credit risk related to the liquidity facilities provided is managed by subjecting these facilities to our normal underwriting and risk management processes. The $2,710 million maximum exposure to loss presented in the table above represents the maximum amount of loans and asset purchases we could be required to fund under the liquidity facilities. The maximum loss exposure is estimated assuming the facilities are fully drawn and the underlying collateralized assets are in default with zero recovery value.

Structured note vehiclesOur involvement in structured note vehicles includes derivatives such as interest rate and currency swaps and investments in the vehicles' debt instruments. In limited circumstances, we entered into total return swaps taking on the risks and benefits of certain structured notes issued by unconsolidated VIEs. The same risks and benefits are passed on to third party entities through back-end total return swaps. We earn a spread for facilitating the transaction. Our maximum exposure to loss is the notional amount of the derivatives wrapping the structured notes. The maximum exposure to loss will occur in the unlikely scenario where the value of the structured notes is reduced to zero and, at the same time, the counterparty of the back-end swap defaults with zero recovery. In other situations, we hold credit default swaps with structured note issuing VIEs under which we receive credit protection on specified reference assets in exchange for the payment of a premium. Through these derivatives, the VIEs assume the credit risk associated with the reference assets which are then passed on to the holders of the debt instruments they issue. Because they create rather than absorb variability, the credit default swaps we hold are not considered variable interests. We record all investments in, and derivative contracts with, unconsolidated structured note vehicles at fair value on our consolidated balance sheet.

Low income housing partnerships Separately from the low income housing LLP discussed above, we invest as a limited partner in low income housing partnerships that operate qualified affordable housing projects and generate tax benefits, including federal low income housing tax credits, for investors. The partnerships are deemed to be VIEs because they do not have sufficient equity

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investment at risk and are structured with non-substantive voting rights. We are not the primary beneficiary of the VIEs and do not consolidate them.

Our investment in low income housing partnerships are recorded in other assets on the consolidated balance sheet. As a practical expedient, we amortize the investment in proportion to the allocated tax benefits under the proportional amortization method of accounting. The maximum exposure to loss shown in the table above represents our recorded investment.

Beneficial interests issued by third-party sponsored securitization entitiesWe hold certain beneficial interests such as mortgage-backed securities issued by third party sponsored securitization entities which may be considered VIEs. The investments are transacted at arm's-length and decisions to invest are based on a credit analysis of the underlying collateral assets or the issuer. We are a passive investor in these issuers and do not have the power to direct the activities of these issuers. As such, we do not consolidate these securitization entities. Additionally, we do not have other involvements in servicing or managing the collateral assets or provide financial or liquidity support to these issuers which potentially give rise to risk of loss exposure. These investments are an integral part of the disclosure in Note 3, "Securities," and Note 18, "Fair Value Measurements," and, therefore, are not disclosed in this note to avoid redundancy.

17. Guarantee Arrangements, Pledged Assets and Collateral

Guarantee Arrangements As part of our normal operations, we enter into credit derivatives and various off-balance sheet guarantee arrangements with affiliates and third parties. These arrangements arise principally in connection with our lending and client intermediation activities and include standby letters of credit and certain credit derivative transactions. The contractual amounts of these arrangements represent our maximum possible credit exposure in the event that we are required to fulfill the maximum obligation under the contractual terms of the guarantee.

The following table presents total carrying value and contractual amounts of our sell protection credit derivatives and major off-balance sheet guarantee arrangements as of March 31, 2015 and December 31, 2014. Following the table is a description of the various arrangements.

	March 31, 2015					December 31, 2014
	Carrying Value			Notional / Maximum Exposure to Loss		Carrying Value			Notional / Maximum Exposure to Loss
	(in millions)
Credit derivatives(1)(4)	$	(1,776	)	$	115,685	$	(1,484	)	$	117,768
Financial standby letters of credit, net of participations(2)(3)	—			6,174		—			5,358
Performance standby letters of credit, net of participations(2)(3)	—			2,943		—			3,083
Liquidity asset purchase agreements(3)	—			2,710		—			2,685
Total	$	(1,776	)	$	127,512	$	(1,484	)	$	128,894

⁽¹⁾  Includes $32,035 million and $32,688 million of notional issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  Includes $880 million and $937 million issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

⁽³⁾  For standby letters of credit and liquidity asset purchase agreements, maximum loss represents losses to be recognized assuming the letter of credit and liquidity facilities have been fully drawn and the obligors have defaulted with zero recovery.

⁽⁴⁾  For credit derivatives, the maximum loss is represented by the notional amounts without consideration of mitigating effects from collateral or recourse arrangements.

Credit-Risk Related Guarantees

Credit derivatives  Credit derivatives are financial instruments that transfer the credit risk of a reference obligation from the credit protection buyer to the credit protection seller who is exposed to the credit risk without buying the reference obligation. We sell credit protection on underlying reference obligations (such as loans or securities) by entering into credit derivatives, primarily in the form of credit default swaps, with various institutions. We account for all credit derivatives at fair value. Where we sell credit protection to a counterparty that holds the reference obligation, the arrangement is effectively a financial guarantee on the reference obligation. Under a credit derivative contract, the credit protection seller will reimburse the credit protection buyer upon occurrence of a credit event (such as bankruptcy, insolvency, restructuring or failure to meet payment obligations when due) as defined in the derivative contract, in return for a periodic premium. Upon occurrence of a credit event, we will pay the counterparty the stated notional amount of the derivative contract and receive the underlying reference obligation. The recovery value of the reference obligation received could be significantly lower than its notional principal amount when a credit event occurs.

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Certain derivative contracts are subject to master netting arrangements and related collateral agreements. A party to a derivative contract may demand that the counterparty post additional collateral in the event its net exposure exceeds certain predetermined limits and when the credit rating falls below a certain grade. We set the collateral requirements by counterparty such that the collateral covers various transactions and products, and is not allocated to specific individual contracts.

We manage our exposure to credit derivatives using a variety of risk mitigation strategies where we enter into offsetting hedge positions or transfer the economic risks, in part or in entirety, to investors through the issuance of structured credit products. We actively manage the credit and market risk exposure in the credit derivative portfolios on a net basis and, as such, retain no or a limited net sell protection position at any time. The following table summarizes our net credit derivative positions as of March 31, 2015 and December 31, 2014:

	March 31, 2015					December 31, 2014
	Carrying / Fair Value			Notional		Carrying / Fair Value			Notional
	(in millions)
Sell-protection credit derivative positions	$	(1,776	)	$	115,685	$	(1,484	)	$	117,768
Buy-protection credit derivative positions	2,142			121,864		1,741			122,969
Net position(1)	$	366		$	6,179	$	257		$	5,201

⁽¹⁾  Positions are presented net in the table above to provide a complete analysis of our risk exposure and depict the way we manage our credit derivative portfolio. The offset of the sell-protection credit derivatives against the buy-protection credit derivatives may not be legally binding in the absence of master netting agreements with the same counterparty. Furthermore, the credit loss triggering events for individual sell protection credit derivatives may not be the same or occur in the same period as those of the buy protection credit derivatives thereby not providing an exact offset.

Standby letters of credit  A standby letter of credit is issued to a third party for the benefit of a customer and is a guarantee that the customer will perform or satisfy certain obligations under a contract. It irrevocably obligates us to pay a specified amount to the third party beneficiary if the customer fails to perform the contractual obligation. We issue two types of standby letters of credit: performance and financial. A performance standby letter of credit is issued where the customer is required to perform some non-financial contractual obligation, such as the performance of a specific act, whereas a financial standby letter of credit is issued where the customer's contractual obligation is of a financial nature, such as the repayment of a loan or debt instrument. As of March 31, 2015, the total amount of outstanding financial standby letters of credit (net of participations) and performance guarantees (net of participations) were $6,174 million and $2,943 million, respectively. As of December 31, 2014, the total amount of outstanding financial standby letters of credit (net of participations) and performance guarantees (net of participations) were $5,358 million and $3,083 million, respectively.

The issuance of a standby letter of credit is subject to our credit approval process and collateral requirements. We charge fees for issuing letters of credit commensurate with the customer's credit evaluation and the nature of any collateral. Included in other liabilities are deferred fees on standby letters of credit, which represent the value of the stand-ready obligation to perform under these guarantees, amounting to $52 million and $50 million at March 31, 2015 and December 31, 2014, respectively. Also included in other liabilities is an allowance for credit losses on unfunded standby letters of credit of $17 million and $16 million at March 31, 2015 and December 31, 2014, respectively.

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The following table summarizes the credit ratings of credit risk related guarantees including the credit ratings of counterparties against which we sold credit protection and financial standby letters of credit as of March 31, 2015 as an indicative proxy of payment risk:

	Average Life (in years)	Credit Ratings of the Obligors or the Transactions
Notional/Contractual Amounts		Investment       Grade		Non-Investment Grade		Total
	(dollars are in millions)
Sell-protection Credit Derivatives(1)
Single name credit default swaps ("CDS")	2.7	$	72,959	$	19,139	$	92,098
Structured CDS	1.8	6,111		652		6,763
Index credit derivatives	2.2	4,840		8,288		13,128
Total return swaps	2.7	3,299		397		3,696
Subtotal		87,209		28,476		115,685
Standby Letters of Credit(2)	1.1	6,717		2,400		9,117
Total		$	93,926	$	30,876	$	124,802

⁽¹⁾  The credit ratings in the table represent external credit ratings for classification as investment grade and non-investment grade.

⁽²⁾  External ratings for most of the obligors are not available. Presented above are the internal credit ratings which are developed using similar methodologies and rating scale equivalent to external credit ratings for purposes of classification as investment grade and non-investment grade.

Our internal groupings are determined based on HSBC's risk rating systems and processes which assign a credit grade based on a scale which ranks the risk of default of a customer. The groupings are determined and used for managing risk and determining level of credit exposure appetite based on the customer's operating performance, liquidity, capital structure and debt service ability. In addition, we also incorporate subjective judgments into the risk rating process concerning such things as industry trends, comparison of performance to industry peers and perceived quality of management. We compare our internal risk ratings to outside external rating agency benchmarks, where possible, at the time of formal review and regularly monitor whether our risk ratings are comparable to the external ratings benchmark data.

A non-investment grade rating of a referenced obligor has a negative impact to the fair value of the credit derivative and increases the likelihood that we will be required to perform under the credit derivative contract. We employ market-based parameters and, where possible, use the observable credit spreads of the referenced obligors as measurement inputs in determining the fair value of the credit derivatives. We believe that such market parameters are more indicative of the current status of payment/performance risk than external ratings by the rating agencies which may not be forward-looking in nature and, as a result, lag behind those market-based indicators.

Non Credit-Risk Related Guarantees and Other Arrangements

Liquidity asset purchase agreements  We provide liquidity facilities to Regency, a multi-seller ABCP conduit consolidated by an HSBC affiliate. Regency finances the purchase of individual assets by issuing commercial paper to third party investors. Each liquidity facility is transaction specific and has a maximum limit. Pursuant to the liquidity agreements, we are obligated, subject to certain limitations, to advance funds in an amount not to exceed the face value of the commercial paper in the event Regency is unable or unwilling to refinance its commercial paper. A liquidity asset purchase agreement is economically a conditional written put option issued to the conduit where the exercise price is the face value of the commercial paper. As of March 31, 2015 and December 31, 2014 we had issued $2,710 million and $2,685 million, respectively, of liquidity facilities to provide liquidity support to ABCP conduits. See Note 16, "Variable Interest Entities," for further information.

Clearinghouses and exchanges  We are a member of various exchanges and clearinghouses that trade and clear securities and/or derivatives contracts. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, members of a clearinghouse may be required to contribute to a guaranty fund to backstop members' obligations to the clearinghouse. As a member, we may be required to pay a proportionate share of the financial obligations of another member who defaults on its obligations to the exchange or the clearinghouse. Our guarantee obligations would arise only if the exchange or clearinghouse had exhausted its resources. Any potential contingent liability under these membership agreements cannot be estimated.

Securitization Activity  In addition to the repurchase risk described above, we have also been involved as a sponsor/seller of loans used to facilitate whole loan securitizations underwritten by our affiliate, HSI. In this regard, we began acquiring residential mortgage loans in 2005 which were warehoused on our balance sheet with the intent of selling them to HSI to facilitate HSI’s whole loan securitization program which was discontinued in 2007. During 2005-2007, we purchased and sold $24 billion of such loans to HSI which were subsequently securitized and sold by HSI to third parties. See "Mortgage Securitization Matters" in Note

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28, "Litigation and Regulatory Matters," in our 2014 Form10-K for additional discussion of related exposure. There have been no significant changes with regards to this exposure since December 31, 2014. The outstanding principal balance on these loans was approximately $5.7 billion at both March 31, 2015 and December 31, 2014, respectively.

Mortgage Loan Repurchase Obligations  In the ordinary course of business, we originate and sell mortgage loans and provide various representations and warranties related to, among other things, the ownership of the loans, the validity of the liens, the loan selection and origination process, and the compliance to the origination criteria established by the agencies. In the event of a breach of our representations and warranties, we may be obligated to repurchase the loans with identified defects or to indemnify the buyers. Our contractual obligation arises only when the breach of representations and warranties are discovered and repurchase is demanded. Historically, these sales had been primarily to government sponsored entities ("GSEs") and, as a result of settlements with FNMA and FHLMC during 2013 and 2014, the repurchase exposure associated with these sales has been substantially resolved. In addition, with the conversion of our mortgage processing and servicing operations to PHH Mortgage in 2013, new agency eligible originations are sold directly to PHH Mortgage and PHH Mortgage is responsible for origination representations and warranties for all loans purchased.

During the first quarter of 2014, we entered into a settlement with the FHLMC for $25 million, reflected in realized losses in the liability rollforward below, which settled our liability for substantially all loans sold to FHLMC from January 1, 2000 through 2013. As a result of the settlement and a re-assessment of the residual exposure, we released $34 million in repurchase reserves. We continue to maintain repurchase reserves for exposure associated with residual risks not covered by the settlement agreement.

The following table provides information about outstanding repurchase demands received from GSEs and other third parties at March 31, 2015 and December 31, 2014:

	March 31, 2015		December 31, 2014
	(in millions)
GSEs	$	2	$	2
Others	1		1
Total	$	3	$	3

In estimating our repurchase liability arising from breaches of representations and warranties, we consider historical losses on residual risks not covered by settlement agreements adjusted for any risk factors not captured in the historical losses.

The following table summarizes the change in our estimated repurchase liability for loans sold to the GSEs and other third parties during the three months ended March 31, 2015 and 2014 for obligations arising from the breach of representations and warranties associated with the sale of these loans:

Three Months Ended March 31,	2015			2014
	(in millions)
Balance at beginning of period	$	27		$	99
Increase (decrease) in liability recorded through earnings	(3		)	(34		)
Realized losses	(1		)	(29		)
Balance at end of period	$	23		$	36

Our remaining mortgage repurchase liability of $23 million at March 31, 2015 represents our best estimate of the loss that has been incurred including interest, resulting from various representations and warranties in the contractual provisions of our mortgage loan sales adjusted for settlements reached with counterparties. Because the level of mortgage loan repurchase losses is dependent upon economic factors, investor demand strategies and other external risk factors such as housing market trends that may change, the level of the liability for mortgage loan repurchase losses requires significant judgment. We have seen recent changes in investor demand trends, including significantly lower levels of demands received, and continue to evaluate our methods of determining the best estimate of loss based on these recent trends. As these estimates are influenced by factors outside our control, there is uncertainty inherent in these estimates making it reasonably possible that they could change. The range of reasonably possible losses in excess of our recorded repurchase liability is between zero and $25 million at March 31, 2015. This estimated range of reasonably possible losses was determined based upon modifying the assumptions utilized in our best estimate of probable losses to reflect what we believe to be reasonably possible adverse assumptions.

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Pledged Assets  

Pledged assets included in the consolidated balance sheet consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Interest bearing deposits with banks	$	397	$	415
Trading assets(1)	2,809		2,886
Securities available-for-sale(2)	24,794		22,023
Securities held-to-maturity	3,410		3,602
Loans(3)	13,488		12,580
Other assets(4)	1,996		2,495
Total	$	46,894	$	44,001

⁽¹⁾  Trading assets are primarily pledged against liabilities associated with repurchase agreements.

⁽²⁾  Securities available-for-sale are primarily pledged against derivatives, public fund deposits, trust deposits and various short-term and long term borrowings, as well as providing capacity for potential secured borrowings from the Federal Home Loan Bank of New York ("FHLB") and the Federal Reserve Bank of New York.

⁽³⁾  Loans are primarily residential mortgage loans pledged against current and potential borrowings from the FHLB and the Federal Reserve Bank of New York.

⁽⁴⁾  Other assets represent cash on deposit with non-banks related to derivative collateral support agreements.

Debt securities pledged as collateral that can be sold or repledged by the secured party continue to be reported on the consolidated balance sheet. The fair value of securities available-for-sale that can be sold or repledged was $9,869 million and $8,348 million at March 31, 2015 and December 31, 2014, respectively. The fair value of trading assets that can be sold or repledged was $2,809 million and $2,886 million at March 31, 2015 and December 31, 2014, respectively.

The fair value of collateral we accepted but not reported on the consolidated balance sheet that can be sold or repledged was $8,608 million and $6,765 million at March 31, 2015 and December 31, 2014, respectively. This collateral was obtained under security resale agreements. Of this collateral, $1,182 million and $2,226 million has been sold or repledged as collateral under repurchase agreements or to cover short sales at March 31, 2015 and December 31, 2014, respectively.

Offsetting of Resale and Repurchase Agreements and Securities Borrowing and Lending Agreements

We enter into purchases and borrowings of securities under agreements to resell (resale agreements) and sales of securities under agreements to repurchase (repurchase agreements) identical or substantially the same securities. Resale and repurchase agreements are generally accounted for as secured lending and secured borrowing transactions, respectively.

The amounts advanced under resale agreements and the amounts borrowed under repurchase agreements are carried on the consolidated balance sheets at the amount advanced or borrowed, plus accrued interest to date. Interest earned on resale agreements is reported as interest income. Interest paid on repurchase agreements is reported as interest expense. We offset resale and repurchase agreements executed with the same counterparty under legally enforceable netting agreements that meet the applicable netting criteria as permitted by generally accepted accounting principles.

Repurchase agreements may require us to deposit cash or other collateral with the lender. In connection with resale agreements, it is our policy to obtain possession of collateral, which may include the securities purchased, with market value in excess of the principal amount loaned. The market value of the collateral subject to the resale and repurchase agreements is regularly monitored, and additional collateral is obtained or provided when appropriate, to ensure appropriate collateral coverage of these secured financing transactions.

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The following table provides information about repurchase agreements and resell agreements that are subject to offset as of March 31, 2015 and December 31, 2014:

					Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet(1)	Net Amounts Presented in the Balance Sheet	Financial Instruments (2)	Cash Collateral Received / Pledged	Net Amount (3)
	(in millions)
As of March 31, 2015:
Assets:
Securities purchased under agreements to resell	$	8,608	1,643	6,965	6,965	—	$	—
Liabilities:
Securities sold under repurchase agreements	$	13,860	1,643	12,217	12,217	—	$	—
As of December 31, 2014:
Assets:
Securities purchased under agreements to resell	$	7,165	5,752	1,413	1,413	—	$	—
Liabilities:
Securities sold under repurchase agreements	$	13,459	5,752	7,707	7,707	—	$	—

⁽¹⁾  Represents recognized amount of resale and repurchase agreements with counterparties subject to legally enforceable netting agreements that meet the applicable netting criteria as permitted by generally accepted accounting principles.

⁽²⁾  Represents securities received or pledged to cover financing transaction exposures.

⁽³⁾  Represents the amount of our exposure that is not collateralized / covered by pledged collateral.

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18. Fair Value Measurements

Accounting principles related to fair value measurements provide a framework for measuring fair value that focuses on the exit price that would be received to sell an asset or paid to transfer a liability in the principal market (or in the absence of the principal market, the most advantageous market) accessible in an orderly transaction between willing market participants (the "Fair Value Framework"). Where required by the applicable accounting standards, assets and liabilities are measured at fair value using the "highest and best use" valuation premise. Fair value measurement guidance clarifies that financial instruments do not have alternative use and, as such, the fair value of financial instruments should be determined using an “in-exchange” valuation premise. However, the fair value measurement literature provides a valuation exception and permits an entity to measure the fair value of a group of financial assets and financial liabilities with offsetting credit risks and/or market risks based on the exit price it would receive or pay to transfer the net risk exposure of a group of assets or liabilities if certain conditions are met. We elected to apply the measurement exception to a group of derivative instruments with offsetting credit risks and market risks, which primarily relate to interest rate, foreign currency, debt and equity price risk, and commodity price risk as of the reporting date.

Fair Value Adjustments  The best evidence of fair value is quoted market price in an actively traded market, where available. In the event listed price or market quotes are not available, valuation techniques that incorporate relevant transaction data and market parameters reflecting the attributes of the asset or liability under consideration are applied. Where applicable, fair value adjustments are made to ensure the financial instruments are appropriately recorded at fair value. The fair value adjustments reflect the risks associated with the products, contractual terms of the transactions, and the liquidity of the markets in which the transactions occur. The fair value adjustments are broadly categorized by the following major types:

Credit risk adjustment - The credit risk adjustment is an adjustment to a group of financial assets and financial liabilities, predominantly derivative assets and derivative liabilities, to reflect the credit quality of the parties to the transaction in arriving at fair value. A credit valuation adjustment to a financial asset is required to reflect the default risk of the counterparty. A debit valuation adjustment to a financial liability is recorded to reflect the default risk of HUSI.

Liquidity risk adjustment - The liquidity risk adjustment (primarily in the form of bid-offer adjustment) reflects the cost that would be incurred to close out the market risks by hedging, disposing or unwinding the position. Valuation models generally produce mid market values. The bid-offer adjustment is made in such a way that results in a measure that reflects the exit price that most represents the fair value of the financial asset or financial liability under consideration or, where applicable, the fair value of the net market risk exposure of a group of financial assets or financial liabilities. These adjustments relate primarily to Level 2 assets.

Model valuation adjustment - Where fair value measurements are determined using an internal valuation model based on observable and unobservable inputs, certain valuation inputs may be less readily determinable. There may be a range of possible valuation inputs that market participants may assume in determining the fair value measurement. The resultant fair value measurement has inherent measurement risk if one or more parameters are unobservable and must be estimated. An input valuation adjustment is necessary to reflect the likelihood that market participants may use different input parameters, and to mitigate the possibility of measurement error. In addition, the values derived from valuation techniques are affected by the choice of valuation model and model limitation. When different valuation techniques are available, the choice of valuation model can be subjective. Furthermore, the valuation model applied may have measurement limitations. In those cases, an additional valuation adjustment is also applied to mitigate the measurement risk. Model valuation adjustments are not material and relate primarily to Level 2 instruments.

We apply stress scenarios in determining appropriate liquidity risk and model risk adjustments for Level 3 fair values by reviewing the historical data for unobservable inputs (e.g., correlation, volatility). Some stress scenarios involve a 95 percent confidence interval (i.e., two standard deviations). Other stress scenarios may be performed using highly stressed historical inputs such as credit spreads experienced during a credit crisis. We also utilize unobservable parameter adjustments when instruments are valued using internally developed models which reflects the uncertainty in the value estimates provided by the model.

Valuation of uncollateralized derivatives - During 2014, we adopted a funding fair value adjustment ("FFVA") to reflect the estimated present value of the future market funding cost or benefit associated with funding uncollateralized derivative exposure at rates other than the Overnight Indexed Swap ("OIS") rate. See "Valuation Techniques - Derivatives" below for additional details.

Fair Value Hierarchy  The Fair Value Framework establishes a three-tiered fair value hierarchy as follows:

Level 1 quoted market price - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 valuation technique using observable inputs - Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are inactive, and measurements determined using valuation models where all significant inputs are observable, such as interest rates and yield curves that are observable at commonly quoted intervals.

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Level 3 valuation technique with significant unobservable inputs - Level 3 inputs are unobservable inputs for the asset or liability and include situations where fair values are measured using valuation techniques based on one or more significant unobservable input.

Classification within the fair value hierarchy is based on whether the lowest hierarchical level input that is significant to the fair value measurement is observable. As such, the classification within the fair value hierarchy is dynamic and can be transferred to other hierarchy levels in each reporting period. Transfers between leveling categories are assessed, determined and recognized at the end of each reporting period.

Valuation Control Framework We have established a control framework which is designed to ensure that fair values are either determined or validated by a function independent of the risk-taker. To that end, the ultimate responsibility for the determination of fair values rests with Finance. Finance has established an independent price validation process to ensure that the assets and liabilities measured at fair value are properly stated.

A valuation committee, chaired by the Head of Business Finance of GB&M, meets monthly to review, monitor and discuss significant valuation matters arising from credit and market risks. The committee is responsible for reviewing and approving valuation policies and procedures including any valuation adjustments pertaining to, among other things, independent price verification, market liquidity, unobservable inputs, model uncertainty and counterparty credit risk. All valuation models are reviewed by the valuation committee in terms of model development, enhancements and performance. All models are independently reviewed by the Markets IMR function and applicable valuation model recommendations are reported to and discussed with the valuation committee. Significant valuation risks identified in business activities are corroborated and addressed by the committee members and, where applicable, are escalated to the Chief Financial Officer of HUSI and the Audit Committee of the Board of Directors.

Where fair value measurements are determined based on information obtained from independent pricing services or brokers, Finance applies appropriate validation procedures to substantiate fair value. For price validation purposes, quotations from at least two independent pricing sources are obtained for each financial instrument, where possible.

The following factors are considered in determining fair values:

▪ similarities between the asset or the liability under consideration and the asset or liability for which quotation is received;

▪ collaboration of pricing by referencing to other independent market data such as market transactions and relevant benchmark indices;

▪ consistency among different pricing sources;

▪ the valuation approach and the methodologies used by the independent pricing sources in determining fair value;

▪ the elapsed time between the date to which the market data relates and the measurement date;

▪ the source of the fair value information; and

▪ whether the security is traded in an active or inactive market.

Greater weight is given to quotations of instruments with recent market transactions, pricing quotes from dealers who stand ready to transact, quotations provided by market-makers who structured such instrument and market consensus pricing based on inputs from a large number of survey participants. Any significant discrepancies among the external quotations are reviewed and adjustments to fair values are recorded where appropriate. Where the transaction volume of a specific instrument has been reduced and the fair value measurement becomes less transparent, Finance will apply more detailed procedures to understand and challenge the appropriateness of the unobservable inputs and the valuation techniques used by the independent pricing service. Where applicable, Finance will develop a fair value estimate using its own pricing model inputs to test reasonableness. Where fair value measurements are determined using internal valuation models, Finance will validate the fair value measurement by either developing unobservable inputs based on the industry consensus pricing surveys in which we participate or back testing by observing the actual settlements occurring soon after the measurement date. Any significant valuation adjustments are reported to and discussed with the valuation committee.

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Fair Value of Financial Instruments  The fair value estimates, methods and assumptions set forth below for our financial instruments, including those financial instruments carried at cost, are made solely to comply with disclosures required by generally accepted accounting principles in the United States and should be read in conjunction with the financial statements and notes included in this report.

The following table summarizes the carrying value and estimated fair value of our financial instruments at March 31, 2015 and December 31, 2014:

March 31, 2015	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Short-term financial assets	$	33,260	$	33,260	$	972	$	32,249	$	39
Federal funds sold and securities purchased under resale agreements	6,965		6,965		—		6,965		—
Non-derivative trading assets	15,938		15,938		2,912		9,925		3,101
Derivatives	8,403		8,403		8		8,350		45
Securities	47,111		47,446		25,141		22,305		—
Commercial loans, net of allowance for credit losses	61,113		62,494		—		—		62,494
Commercial loans designated under fair value option and held for sale	255		255		—		255		—
Commercial loans held for sale	36		36		—		36		—
Consumer loans, net of allowance for credit losses	19,642		18,143		—		—		18,143
Consumer loans held for sale:
Residential mortgages	24		25		—		20		5
Other consumer	90		90		—		—		90
Financial liabilities:
Short-term financial liabilities	$	15,710	$	15,710	$	—	$	15,671	$	39
Deposits:
Without fixed maturities	109,625		109,625		—		109,625		—
Fixed maturities	2,521		2,524		—		2,524		—
Deposits designated under fair value option	6,948		6,948		—		5,022		1,926
Non-derivative trading liabilities	646		646		477		169		—
Derivatives	11,846		11,846		19		11,798		29
Long-term debt	20,387		21,259		—		21,259		—
Long-term debt designated under fair value option	9,033		9,033		—		8,391		642

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December 31, 2014	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Short-term financial assets	$	31,746	$	31,746	$	891	$	30,807	$	48
Federal funds sold and securities purchased under resale agreements	1,413		1,413		—		1,413		—
Non-derivative trading assets	15,490		15,490		2,675		9,722		3,093
Derivatives	7,258		7,258		10		7,200		48
Securities	43,609		43,835		22,048		21,787		—
Commercial loans, net of allowance for credit losses	57,595		58,891		—		—		58,891
Commercial loans designated under fair value option and held for sale	384		384		—		384		—
Commercial loans held for sale	144		144		—		144		—
Consumer loans, net of allowance for credit losses	19,466		17,896		—		—		17,896
Consumer loans held for sale:
Residential mortgages	18		19		—		14		5
Other consumer	66		66		—		—		66
Financial liabilities:
Short-term financial liabilities	$	12,861	$	12,861	$	—	$	12,813	$	48
Deposits:
Without fixed maturities	105,962		105,962		—		105,962		—
Fixed maturities	2,810		2,813		—		2,813		—
Deposits designated under fair value option	7,346		7,346		—		5,378		1,968
Non-derivative trading liabilities	705		705		653		52		—
Derivatives	8,413		8,413		8		8,376		29
Long-term debt	18,733		19,524		—		19,524		—
Long-term debt designated under fair value option	8,791		8,791		—		8,144		647

Loan values presented in the table above were determined using the Fair Value Framework for measuring fair value, which is based on our best estimate of the amount within a range of value we believe would be received in a sale as of the balance sheet date (i.e. exit price). The secondary market demand and estimated value for our residential mortgage loans has been heavily influenced by the challenging economic conditions during the past several years, including house price depreciation, elevated unemployment, changes in consumer behavior, changes in discount rates and the lack of financing options available to support the purchase of receivables. For certain consumer loans, investors incorporate numerous assumptions in predicting cash flows, such as future interest rates, higher charge-off levels, slower voluntary prepayment speeds, different default and loss curves and estimated collateral values than we, as the servicer of these loans, believe will ultimately be the case. The investor's valuation process reflects this difference in overall cost of capital assumptions as well as the potential volatility in the underlying cash flow assumptions, the combination of which may yield a significant pricing discount from our intrinsic value. The estimated fair values at March 31, 2015 and December 31, 2014 reflect these market conditions. The increase in the relative fair value of our residential mortgage loans since December 31, 2014 reflects the conditions in the housing industry which have continued to show improvement in 2015 due to improvements in property values as well as lower required market yields and increased investor demand for these types of receivables.

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Assets and Liabilities Recorded at Fair Value on a Recurring Basis  The following table presents information about our assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value:

	Fair Value Measurements on a Recurring Basis
March 31, 2015	Level 1		Level 2		Level 3		Gross Balance		Netting(1)			Net Balance
	(in millions)
Assets:
Trading Securities, excluding derivatives:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	$	2,912	$	107	$	—	$	3,019	$	—		$	3,019
Obligations of U.S. States and political subdivisions	—		586		—		586		—			586
Collateralized debt obligations	—		—		253		253		—			253
Asset-backed securities:
Residential mortgages	—		139		—		139		—			139
Student Loans	—		88		—		88		—			88
Corporate and other domestic debt securities	—		—		2,848		2,848		—			2,848
Debt Securities issued by foreign entities:
Corporate	—		183		—		183		—			183
Government-backed	—		5,494		—		5,494		—			5,494
Equity securities	—		18		—		18		—			18
Precious metals trading	—		3,310		—		3,310		—			3,310
Derivatives(2):
Interest rate contracts	32		51,719		21		51,772		—			51,772
Foreign exchange contracts	22		27,735		19		27,776		—			27,776
Equity contracts	—		2,245		165		2,410		—			2,410
Precious metals contracts	33		794		—		827		—			827
Credit contracts	—		4,025		258		4,283		—			4,283
Derivatives netting	—		—		—		—		(78,665		)	(78,665		)
Total derivatives	87		86,518		463		87,068		(78,665		)	8,403
Securities available-for-sale:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	25,141		2,721		—		27,862		—			27,862
Obligations of U.S. states and political subdivisions	—		748		—		748		—			748
Asset-backed securities:
Commercial mortgages	—		29		—		29		—			29
Home equity	—		85		—		85		—			85
Other	—		94		—		94		—			94
Debt Securities issued by foreign entities:
Corporate	—		360		—		360		—			360
Government-backed	—		3,753		—		3,753		—			3,753
Equity securities	—		165		—		165		—			165
Loans(3)	—		255		—		255		—			255
Mortgage servicing rights(4)	—		—		141		141		—			141
Total assets	$	28,140	$	104,653	$	3,705	$	136,498	$	(78,665	)	$	57,833
Liabilities:
Deposits in domestic offices(5)	$	—	$	5,022	$	1,926	$	6,948	$	—		$	6,948
Trading liabilities, excluding derivatives	477		169		—		646		—			646
Derivatives(2):
Interest rate contracts	58		52,183		1		52,242		—			52,242
Foreign exchange contracts	47		26,315		19		26,381		—			26,381
Equity contracts	—		1,603		122		1,725		—			1,725
Precious metals contracts	31		645		—		676		—			676
Credit contracts	—		3,932		66		3,998		—			3,998
Derivatives netting	—		—		—		—		(73,176		)	(73,176		)
Total derivatives	136		84,678		208		85,022		(73,176		)	11,846
Long-term debt(5)	—		8,391		642		9,033		—			9,033
Total liabilities	$	613	$	98,260	$	2,776	$	101,649	$	(73,176	)	$	28,473

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	Fair Value Measurements on a Recurring Basis
December 31, 2014	Level 1		Level 2		Level 3		Gross Balance		Netting(1)			Net Balance
	(in millions)
Assets:
Trading Securities, excluding derivatives:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	$	2,675	$	48	$	—	$	2,723	$	—		$	2,723
Obligations of U. S. States and political subdivisions	—		591		—		591		—			591
Collateralized debt obligations	—		—		253		253		—			253
Asset-backed securities:
Residential mortgages	—		142		—		142		—			142
Student loans	—		86		—		86		—			86
Corporate and other domestic debt securities	—		1		2,840		2,841		—			2,841
Debt Securities issued by foreign entities:
Corporate	—		184		—		184		—			184
Government-backed	—		6,656		—		6,656		—			6,656
Equity securities	—		22		—		22		—			22
Precious metals trading	—		1,992		—		1,992		—			1,992
Derivatives(2):
Interest rate contracts	46		46,012		1		46,059		—			46,059
Foreign exchange contracts	—		22,241		23		22,264		—			22,264
Equity contracts	—		2,212		180		2,392		—			2,392
Precious metals contracts	59		1,013		—		1,072		—			1,072
Credit contracts	—		3,899		296		4,195		—			4,195
Derivatives netting	—		—		—		—		(68,724		)	(68,724		)
Total derivatives	105		75,377		500		75,982		(68,724		)	7,258
Securities available-for-sale:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	22,048		3,117		—		25,165		—			25,165
Obligations of U.S. states and political subdivisions	—		667		—		667		—			667
Asset-backed securities:
Commercial mortgages	—		43		—		43		—			43
Home equity	—		89		—		89		—			89
Other	—		94		—		94		—			94
Debt Securities issued by foreign entities:
Corporate	—		517		—		517		—			517
Government-backed	—		3,398		—		3,398		—			3,398
Equity securities	—		167		—		167		—			167
Loans(3)	—		384		—		384		—			384
Mortgage servicing rights(4)	—		—		159		159		—			159
Total assets	$	24,828	$	93,575	$	3,752	$	122,155	$	(68,724	)	$	53,431
Liabilities:
Deposits in domestic offices(5)	$	—	$	5,378	$	1,968	$	7,346	$	—		$	7,346
Trading liabilities, excluding derivatives	653		52		—		705		—			705
Derivatives(2):
Interest rate contracts	43		46,683		1		46,727		—			46,727
Foreign exchange contracts	13		20,847		23		20,883		—			20,883
Equity contracts	—		1,661		138		1,799		—			1,799
Precious metals contracts	18		596		—		614		—			614
Credit contracts	—		3,941		86		4,027		—			4,027
Derivatives netting	—		—		—		—		(65,637		)	(65,637		)
Total derivatives	74		73,728		248		74,050		(65,637		)	8,413
Long-term debt(5)	—		8,144		647		8,791		—			8,791
Total liabilities	$	727	$	87,302	$	2,863	$	90,892	$	(65,637	)	$	25,255

⁽¹⁾  Represents counterparty and cash collateral netting which allow the offsetting of amounts relating to certain contracts if certain conditions are met.

⁽²⁾  Includes trading derivative assets of $6,506 million and $5,602 million and trading derivative liabilities of $10,642 million and $7,459 million as of March 31, 2015 and December 31, 2014, respectively, as well as derivatives held for hedging and commitments accounted for as derivatives.

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⁽³⁾  Includes certain commercial loans held for sale which we have elected to apply the fair value option. See Note 6, "Loans Held for Sale," for further information.

⁽⁴⁾  See Note 7, "Intangible Assets," for additional information.

⁽⁵⁾  See Note 10, "Fair Value Option," for additional information.

Transfers between levels of the fair value hierarchy are recognized at the end of each reporting period.

Transfers between Levels 1 and 2 measurements  There were no transfers between Levels 1 and 2 during the three months ended March 31, 2015 and 2014.

Information on Level 3 assets and liabilities  The following table summarizes additional information about changes in the fair value of Level 3 assets and liabilities during the three months ended March 31, 2015 and 2014. As a risk management practice, we may risk manage the Level 3 assets and liabilities, in whole or in part, using securities and derivative positions that are classified as Level 1 or Level 2 measurements within the fair value hierarchy. Since those Level 1 and Level 2 risk management positions are not included in the table below, the information provided does not reflect the effect of such risk management activities related to the Level 3 assets and liabilities.

	Jan. 1, 2015			Total Gains and  (Losses) Included in(1)						Purch- ases		Issu- ances			Settle- ments			Transfers Into Level 3		Transfers Out of Level 3			Mar. 31, 2015			Current Period Unrealized Gains (Losses)
				Trading Revenue (Loss)			Other Revenue
	(in millions)
Assets:
Trading assets, excluding derivatives:
Collateralized debt obligations	$	253		$	9		$	—		$	—	$	—		$	(8	)	$	—	$	—		$	254		$	7
Corporate and other domestic debt securities	2,840			—			—			8		—			—			—		—			2,848			—
Derivatives, net(2):
Interest rate contracts	—			19			1			—		—			—			—		—			20			20
Foreign exchange contracts	—			—			—			—		—			—			—		—			—			—
Equity contracts	42			23			—			—		—			(21		)	—		(1		)	43			14
Credit contracts	210			(12		)	—			—		—			(6		)	—		—			192			(40		)
Mortgage servicing rights(3)	159			—			(14		)	—		—			(4		)	—		—			141			(14		)
Total assets	$	3,504		$	39		$	(13	)	$	8	$	—		$	(39	)	$	—	$	(1	)	$	3,498		$	(13	)
Liabilities:
Deposits in domestic offices(4)	$	(1,968	)	$	—		$	(19	)	$	—	$	(89	)	$	49		$	—	$	101		$	(1,926	)	$	(13	)
Long-term debt(4)	(647		)	—			(7		)	—		(87		)	79			—		20			(642		)	(6		)
Total liabilities	$	(2,615	)	$	—		$	(26	)	$	—	$	(176	)	$	128		$	—	$	121		$	(2,568	)	$	(19	)

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	Jan. 1, 2014			Total Gains and  (Losses) Included in(1)						Purch- ases		Issu- ances			Settle- ments			Transfers Into Level 3			Transfers Out of Level 3		Mar. 31, 2014			Current Period Unrealized Gains (Losses)
				Trading Revenue (Loss)			Other Revenue
	(in millions)
Assets:
Trading assets, excluding derivatives:
Collateralized debt obligations	$	254		$	7		$	—		$	—	$	—		$	(3	)	$	—		$	—	$	258		$	7
Corporate and other domestic debt securities	2,260			(5		)	—			553		—			—			—			—		2,808			(6		)
Government debt securities issued by foreign entities	121			2			—			—		—			(6		)	—			—		117			(4		)
Derivatives, net(2):
Interest rate contracts	1			—			—			—		—			—			—			—		1			—
Foreign exchange contracts	95			1			—			—		—			(6		)	—			6		96			1
Equity contracts	3			19			—			—		—			(7		)	4			5		24			12
Precious metals contracts	(2		)	2			—			—		—			—			—			—		—			—
Credit contracts	191			(13		)	—			—		—			3			—			—		181			(28		)
Mortgage servicing rights(3)	227			—			(12		)	—		—			(10		)	—			—		205			(12		)
Total assets	$	3,150		$	13		$	(12	)	$	553	$	—		$	(29	)	$	4		$	11	$	3,690		$	(30	)
Liabilities:
Deposits in domestic offices(4)	$	(2,334	)	$	(124	)	$	—		$	—	$	(25	)	$	167		$	(68	)	$	140	$	(2,244	)	$	(23	)
Long-term debt(4)	(900		)	93			—			—		(43		)	47			—			71		(732		)	(2		)
Total liabilities	$	(3,234	)	$	(31	)	$	—		$	—	$	(68	)	$	214		$	(68	)	$	211	$	(2,976	)	$	(25	)

⁽¹⁾  Includes realized and unrealized gains and losses.

⁽²⁾  Level 3 net derivatives included derivative assets of $463 million and derivative liabilities of $208 million as of March 31, 2015 and derivative assets of $694 million and derivative liabilities of $392 million as of March 31, 2014.

⁽³⁾  See Note 7, "Intangible Assets," for additional information.

⁽⁴⁾  See Note 10, "Fair Value Option," for additional information.

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The following table presents quantitative information about the unobservable inputs used to determine the recurring fair value measurement of assets and liabilities classified as Level 3 fair value measurements as of March 31, 2015 and December 31, 2014:

March 31, 2015
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Collateralized debt obligations	254		Broker quotes or consensus pricing and, where applicable, discounted cash flows	Prepayment rates	1% - 6%
				Conditional default rates	6% - 7%
				Loss severity rates	90% - 91%
Corporate and other domestic debt securities	2,848		Discounted cash flows	Spread volatility on collateral assets	1% - 4%
				Correlation between insurance claim shortfall and collateral value	80%
Interest rate derivative contracts	20		Market comparable adjusted for probability to fund	Probability to fund for rate lock commitments	6% - 99%
Foreign exchange derivative contracts(1)	—		Option pricing model	Implied volatility of currency pairs	17% - 22%
Equity derivative contracts(1)	43		Option pricing model	Equity / Equity Index volatility	13% - 65%
				Equity / Equity and Equity / Index correlation	47% - 59%
Credit derivative contracts	192		Option pricing model	Correlation of defaults of a portfolio of reference credit names	49% - 52%
				Issuer by issuer correlation of defaults	82% - 83%
Mortgage servicing rights	141		Option adjusted discounted cash flows	Constant prepayment rates	11% - 51%
				Option adjusted spread	8% - 14%
				Estimated annualized costs to service	$91 - $333 per account
Deposits in domestic offices (structured deposits)(1)(2)	(1,926	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	17% - 22%
				Equity / Equity Index volatility	13% - 65%
				Equity / Equity and Equity / Index correlation	47% - 59%
Long-term debt (structured notes)(1)(2)	(642	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	17% - 22%
				Equity / Equity Index volatility	13% - 65%
				Equity / Equity and Equity / Index correlation	47% - 59%

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December 31, 2014
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Collateralized debt obligations	253		Broker quotes or consensus pricing and, where applicable, discounted cash flows	Prepayment rates	1% - 6%
				Conditional default rates	6% - 7%
				Loss severity rates	90% - 91%
Corporate and other domestic debt securities	2,840		Discounted cash flows	Spread volatility on collateral assets	2% - 4%
				Correlation between insurance claim shortfall and collateral value	80%
Interest rate derivative contracts	—		Market comparable adjusted for probability to fund	Probability to fund for rate lock commitments	6% - 98%
Foreign exchange derivative contracts(1)	—		Option pricing model	Implied volatility of currency pairs	10% - 17%
Equity derivative contracts(1)	42		Option pricing model	Equity / Equity Index volatility	11% - 60%
				Equity / Equity and Equity / Index correlation	47% - 73%
Credit derivative contracts	210		Option pricing model	Correlation of defaults of a portfolio of reference credit names	52% - 57%
				Issuer by issuer correlation of defaults	82% - 83%
Mortgage servicing rights	159		Option adjusted discounted cash flows	Constant prepayment rates	10% - 49%
				Option adjusted spread	8% - 19%
				Estimated annualized costs to service	$91 - $333 per account
Deposits in domestic offices (structured deposits)(1)(2)	(1,968	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	10% - 17%
				Equity / Equity Index volatility	11% - 60%
				Equity / Equity and Equity / Index correlation	47% - 73%
Long-term debt (structured notes)(1)(2)	(647	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	10% - 17%
				Equity / Equity Index volatility	11% - 60%
				Equity / Equity and Equity / Index correlation	47% - 73%

⁽¹⁾  We are the client-facing entity and we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market neutral. The corresponding intra-group derivatives are presented as equity derivatives and foreign exchange derivatives in the table.

⁽²⁾  Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs.

Significant Unobservable Inputs for Recurring Fair Value Measurements

Collateralized Debt Obligations ("CDOs")

▪ Prepayment rate - The rate at which borrowers pay off the mortgage loans early. The prepayment rate is affected by a number of factors including the location of the mortgage collateral, the interest rate type of the mortgage loans, borrowers' credit and sensitivity to interest rate movement. The prepayment rate of our CDOs portfolio is tilted towards the low end of the range.

▪ Default rate - Annualized percentage of default rate over a group of collateral such as residential or commercial mortgage loans. The default rate and loss severity rate are positively correlated. The default rate of our portfolio is close to the mid-point of the range.

▪ Loss severity rate - Included in our Level 3 CDOs portfolio are collateralized loan obligations (CLOs) and trust preferred securities which are about equally distributed. The loss severity rate for trust preferred securities as of March 31, 2015 is about 1.8 times that of CLOs.

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Derivatives

▪ Correlation of default - The default correlation of a group of credit exposures measures the likelihood that the credit references within a group will default together. The default correlation is a significant input to structured credit products such as nth-to-default swaps. In addition, the correlation between the currency and the default risk of the reference credits is a critical input to a foreign currency denominated credit default swap where the correlation is not observable.

▪ Implied volatility - The implied volatility is a significant pricing input for freestanding or embedded options including equity, foreign currency and interest rate options. The level of volatility is a function of the nature of the underlying risk, the level of strike price and the years to maturity of the option. Depending on the underlying risk and tenure, we determine the implied volatility based on observable input where information is available. However, substantially all of the implied volatilities are derived based on historical information. The implied volatility for different foreign currency pairs is between 17 percent and 22 percent while the implied volatility for equity/equity or equity/equity index is between 13 percent and 65 percent, respectively at March 31, 2015. Although implied foreign currency volatility and equity volatility appear to be widely distributed at the portfolio level, the deviation of implied volatility on a trade-by-trade basis is narrower. The average deviation of implied volatility for the foreign currency pair and at-the-money equity option are 7 percent and 6 percent, respectively at March 31, 2015.

▪ Correlations of a group of foreign currency or equity - Correlation measures the relative change in values among two or more variables (i.e., equity or foreign currency pair). Variables can be positively or negatively correlated. Correlation is a key input in determining the fair value of a derivative referenced to a basket of variables such as equities or foreign currencies. A majority of the correlations are not observable, but are derived based on historical data. The correlation between equity/equity and equity/equity index was between 47 percent and 59 percent at March 31, 2015.

Sensitivity of Level 3 Inputs to Fair Value Measurements

Collateralized debt obligations - Probability of default, prepayment speed and loss severity rate are significant unobservable inputs. Significant increase (decrease) in these inputs will result in a lower (higher) fair value measurement of a collateralized debt obligation. A change in assumption for default probability is often accompanied by a directionally similar change in loss severity, and a directionally opposite change in prepayment speed.

Corporate and domestic debt securities - The fair value measurements of certain corporate debt securities are affected by the fair value of the underlying portfolios of investments used as collateral and the make-whole guarantee provided by third party guarantors. The probability that the collateral fair value declines below the collateral call threshold concurrent with the guarantors failure to perform its make whole obligation is unobservable. The increase (decrease) in the probability the collateral value falls below the collateral call threshold is often accompanied by a directionally similar change in default probability of the guarantor.

Credit derivatives - Correlation of default among a basket of reference credit names is a significant unobservable input if the credit attributes of the portfolio are not within the parameters of relevant standardized CDS indices. Significant increase (decrease) in the unobservable input will result in a lower (higher) fair value measurement of the credit derivative. A change in assumption for default correlation is often accompanied by a directionally similar change in default probability and loss rates of other credit names in the basket.

Equity and foreign exchange derivatives - The fair value measurement of a structured equity or foreign exchange derivative is primarily affected by the implied volatility of the underlying equity price or exchange rate of the paired foreign currencies. The implied volatility is not observable. Significant increase (decrease) in the implied volatility will result in a higher (lower) fair value of a long position in the derivative contract.

Significant Transfers Into and Out of Level 3 Measurements During the three months ended March 31, 2015, we transferred $101 million of deposits in domestic offices and $20 million of long-term debt, which we have elected to carry at fair value, from Level 3 to Level 2 as a result of the embedded derivative no longer being unobservable as the derivative option is closer to maturity and there is more observability in short term volatility.

During the three months ended March 31, 2014, we transferred $140 million of deposits in domestic offices and $71 million of long-term debt, which we have elected to carry at fair value, from Level 3 to Level 2 as a result of the embedded derivative no longer being unobservable as the derivative option is closer in maturity and there is more observability in short term volatility. Additionally, during the three months ended March 31, 2014, we transferred $68 million of deposits in domestic offices, which we have elected to carry at fair value, from Level 2 to Level 3 as a result of a change in the observability of underlying instruments that resulted in the embedded derivative being unobservable.

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Assets and Liabilities Recorded at Fair Value on a Non-recurring Basis  Certain financial and non-financial assets are measured at fair value on a non-recurring basis and therefore, are not included in the tables above. These assets include (a) mortgage and commercial loans classified as held for sale reported at the lower of amortized cost or fair value and (b) impaired loans or assets that are written down to fair value based on the valuation of underlying collateral during the period. These instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustment in certain circumstances (e.g., impairment). The following table presents the fair value hierarchy level within which the fair value of the financial and non-financial assets has been recorded as of March 31, 2015 and December 31, 2014. The gains (losses) during the three months ended March 31, 2015 and 2014 are also included.

	Non-Recurring Fair Value Measurements as of March 31, 2015								Total Gains (Losses) For the Three Months Ended March 31, 2015
	Level 1		Level 2		Level 3		Total
	(in millions)
Residential mortgage loans held for sale(1)	$	—	$	1	$	5	$	6	$	—
Consumer loans(2)	—		37		—		37		(10		)
Commercial loans held for sale(3)	—		35		—		35		(8		)
Impaired commercial loans(4)	—		—		48		48		—
Real estate owned(5)	—		22		—		22		1
Total assets at fair value on a non-recurring basis	$	—	$	95	$	53	$	148	$	(17	)

	Non-Recurring Fair Value Measurements as of December 31, 2014								Total Gains (Losses) For the Three Months Ended March 31, 2014
	Level 1		Level 2		Level 3		Total
	(in millions)
Residential mortgage loans held for sale(1)	$	—	$	—	$	5	$	5	$	3
Consumer loans(2)	—		164		—		164		(15		)
Commercial loans held for sale(3)	—		77		—		77		—
Impaired commercial loans(4)	—		—		53		53		(6		)
Real estate owned(5)	—		19		—		19		1
Total assets at fair value on a non-recurring basis	$	—	$	260	$	58	$	318	$	(17	)

⁽¹⁾  As of March 31, 2015 and December 31, 2014, the fair value of the loans held for sale was below cost. Certain residential mortgage loans held for sale have been classified as a Level 3 fair value measurement within the fair value hierarchy as the underlying real estate properties which determine fair value are illiquid assets as a result of market conditions and significant inputs in estimating fair value were unobservable. Additionally, the fair value of these properties is affected by, among other things, the location, the payment history and the completeness of the loan documentation.

⁽²⁾  Represents residential mortgage loans held for investment whose carrying amount was reduced during the periods presented based on the fair value of the underlying collateral.

⁽³⁾  As of March 31, 2015 and December 31, 2014, the fair value of the loans held for sale was below cost.

⁽⁴⁾  Certain commercial loans have undergone troubled debt restructurings and are considered impaired. As a matter of practical expedient, we measure the credit impairment of a collateral-dependent loan based on the fair value of the collateral asset. The collateral often involves real estate properties that are illiquid due to market conditions. As a result, these loans are classified as a Level 3 fair value measurement within the fair value hierarchy.

⁽⁵⁾  Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value unadjusted for transaction costs.

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The following tables present quantitative information about non-recurring fair value measurements of assets and liabilities classified with Level 3 of the fair value hierarchy as of March 31, 2015 and December 31, 2014:

As of March 31, 2015
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Residential mortgage loans held for sale	$	5	Valuation of third party appraisal on underlying collateral	Loss severity rates	0% - 100%
Impaired commercial loans	48		Valuation of third party appraisal on underlying collateral	Loss severity rates	17% - 40%

As of December 31, 2014
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Residential mortgage loans held for sale	$	5	Valuation of third party appraisal on underlying collateral	Loss severity rates	0% - 100%
Impaired commercial loans	53		Valuation of third party appraisal on underlying collateral	Loss severity rates	8% - 47%

Significant Unobservable Inputs for Non-Recurring Fair Value Measurements

Residential mortgage loans held for sale primarily represent subprime residential mortgage loans which were previously acquired with the intent of securitizing or selling them to third parties. The weighted average loss severity rate for these loans was approximately 68 percent at March 31, 2015. These severity rates are primarily impacted by the value of the underlying collateral securing the loans.

Impaired loans represent commercial loans. The weighted average severity rate for these loans was approximately 32 percent at March 31, 2015. These severity rates are primarily impacted by the value of the underlying collateral securing the loans.

Valuation Techniques  Following is a description of valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for those financial instruments not recorded at fair value for which fair value disclosure is required.

Short-term financial assets and liabilities - The carrying amount of certain financial assets and liabilities recorded at cost is considered to approximate fair value because they are short-term in nature, bear interest rates that approximate market rates, and generally have negligible credit risk. These items include cash and due from banks, interest bearing deposits with banks, customer acceptance assets and liabilities, short-term borrowings and dividends payable.

Federal funds sold and purchased and securities purchased and sold under resale and repurchase agreements - Federal funds sold and purchased and securities purchased and sold under resale and repurchase agreements are recorded at cost. A significant majority of these transactions are short-term in nature and, as such, the recorded amounts approximate fair value. For transactions with long-dated maturities, fair value is based on dealer quotes for instruments with similar terms and collateral.

Loans - Except for certain commercial loans held for sale for which the fair value option has been elected, we do not record loans at fair value on a recurring basis. From time to time, we record impairments to loans. The write-downs can be based on observable market price of the loan, the underlying collateral value or a discounted cash flow analysis. In addition, fair value estimates are determined based on the product type, financial characteristics, pricing features and maturity.

• Loans held for sale – Certain residential mortgage whole loans, consumer receivables and commercial loans are recorded at the lower of amortized cost or fair value. Where available, we measure held for sale mortgage whole loans based on transaction prices of loan portfolios of similar characteristics observed in the whole loan market. Adjustments are made to reflect differences in collateral location, loan-to-value ratio, FICO scores, vintage year, default rates, the completeness of the loan documentationand other risk characteristics. The fair value estimates of consumer receivables and commercial loans are determined primarily using the discounted cash flow method with estimated inputs in prepayment rates, default rates, loss severity, and market rate of return.

• Commercial loans held for sale designated under FVO – We record certain commercial loans held for sale at fair value. Where available, fair value is based on observable market consensus pricing obtained from independent sources, relevant broker quotes or observed market prices of instruments with similar characteristics. Where observable market parameters are not available, fair value is determined based on contractual cash flows adjusted for estimates of prepayment rates, expected default rates and loss severity discounted at management's estimate of the expected rate of return required by market participants. We also consider loan specific risk mitigating factors such as collateral arrangements in determining the fair value estimate.

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• Commercial loans – Commercial loans and commercial real estate loans are valued by discounting the contractual cash flows, adjusted for prepayments and the borrower’s credit risk, using a discount rate that reflects the current rates offered to borrowers of similar credit standing for the remaining term to maturity and, when applicable, our own estimate of liquidity premium.

• Commercial impaired loans – Generally represents collateral dependent commercial loans with fair value determined based on pricing quotes obtained from an independent third party appraisal.

• Consumer loans – The estimated fair value of our consumer loans were determined by developing an approximate range of value from a mix of various sources as appropriate for the respective pool of assets. These sources included estimates from an HSBC affiliate which reflect over-the-counter trading activity, forward looking discounted cash flow models using assumptions consistent with those which would be used by market participants in valuing such receivables; trading input from other market participants which includes observed primary and secondary trades; where appropriate, the impact of current estimated rating agency credit tranching levels with the associated benchmark credit spreads; and general discussions held directly with potential investors. For revolving products, the estimated fair value excludes future draws on the available credit line as well as other items and, therefore, does not include the fair value of the entire relationship.

Valuation inputs include estimates of future interest rates, prepayment speeds, default and loss curves, estimated collateral value and market discount rates reflecting management’s estimate of the rate that would be required by investors in the current market given the specific characteristics and inherent credit risk of the receivables. Some of these inputs are influenced by collateral value changes and unemployment rates. Where available, such inputs are derived principally from or corroborated by observable market data. We perform analytical reviews of fair value changes on a quarterly basis and periodically validate our valuation methodologies and assumptions based on the results of actual sales of such receivables. In addition, from time to time, we may engage a third party valuation specialist to measure the fair value of a pool of receivables. Portfolio risk management personnel provide further validation through discussions with third party brokers and other market participants. Since an active market for these receivables does not exist, the fair value measurement process uses unobservable significant inputs specific to the performance characteristics of the various receivable portfolios.

Lending-related commitments - The fair value of commitments to extend credit, standby letters of credit and financial guarantees are not included in the table. The majority of the lending related commitments are not carried at fair value on a recurring basis nor are they actively traded. These instruments generate fees, which approximate those currently charged to originate similar commitments, which are recognized over the term of the commitment period. Deferred fees on commitments and standby letters of credit totaled $52 million and $50 million at March 31, 2015 and December 31, 2014, respectively.

Precious metals trading - Precious metals trading primarily includes physical inventory which is valued using spot prices.

Securities - Where available, debt and equity securities are valued based on quoted market prices. If a quoted market price for the identical security is not available, the security is valued based on quotes from similar securities, where possible. For certain securities, internally developed valuation models are used to determine fair values or validate quotes obtained from pricing services. The following summarizes the valuation methodology used for our major security classes:

• U.S. Treasury, U.S. Government agency issued or guaranteed and obligations of U.S. state and political subdivisions – As these securities transact in an active market, fair value measurements are based on quoted prices for the identical security or quoted prices for similar securities with adjustments as necessary made using observable inputs which are market corroborated.

• U.S. Government sponsored enterprises – For government sponsored mortgage-backed securities which transact in an active market, fair value measurements are based on quoted prices for the identical security or quoted prices for similar securities with adjustments as necessary made using observable inputs which are market corroborated. For government sponsored mortgage-backed securities which do not transact in an active market, fair value is determined primarily based on pricing information obtained from pricing services and is verified by internal review processes.

• Asset-backed securities, including collateralized debt obligations – Fair value is primarily determined based on pricing information obtained from independent pricing services adjusted for the characteristics and the performance of the underlying collateral.

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The following tables provide additional information relating to asset-backed securities as well as certain collateralized debt obligations held as of March 31, 2015:

Trading asset-backed securities:

Rating of Securities:(1)	Collateral Type:	Level 2		Level 3		Total
		(in millions)
AAA -A	Residential mortgages - Alt A	$	80	$	—	$	80
	Residential mortgages - Subprime	53		—		53
	Student loans	88		—		88
	Total AAA -A	221		—		221
BBB -B	Collateralized debt obligations	—		253		253
CCC-Unrated	Residential mortgages - Subprime	6		—		6
		$	227	$	253	$	480

Available-for-sale securities backed by collateral:

Rating of Securities:(1)	Collateral Type:	Level 2		Level 3		Total
		(in millions)
AAA -A	Commercial mortgages	$	29	$	—	$	29
	Home equity - Alt A	85		—		85
	Other	94		—		94
	Total AAA -A	$	208	$	—	$	208

⁽¹⁾   We utilize S&P as the primary source of credit ratings in the tables above. If S&P ratings are not available, ratings by Moody's and Fitch are used in that order. Ratings for collateralized debt obligations represent the ratings associated with the underlying collateral.

• Other domestic debt and foreign debt securities (corporate and government) - For non-callable corporate securities, a credit spread scale is created for each issuer. These spreads are then added to the equivalent maturity U.S. Treasury yield to determine current pricing. Credit spreads are obtained from the new market, secondary trading levels and dealer quotes. For securities with early redemption features, an option adjusted spread ("OAS") model is incorporated to adjust the spreads determined above. Additionally, we survey the broker/dealer community to obtain relevant trade data including benchmark quotes and updated spreads.

• Equity securities – Except for those legacy investments in hedge funds, since most of our securities are transacted in active markets, fair value measurements are determined based on quoted prices for the identical security. For hedge fund investments, we receive monthly statements from the investment manager with the estimated fair value.

Derivatives – Derivatives are recorded at fair value. Asset and liability positions in individual derivatives that are covered by legally enforceable master netting agreements, including receivables (payables) for cash collateral posted (received), are offset and presented net in accordance with accounting principles which allow the offsetting of amounts.

Derivatives traded on an exchange are valued using quoted prices. OTC derivatives, which comprise a majority of derivative contract positions, are valued using valuation techniques. The fair value for the majority of our derivative instruments are determined based on internally developed models that utilize independently corroborated market parameters, including interest rate yield curves, option volatilities, and currency rates. For complex or long-dated derivative products where market data is not available, fair value may be affected by the underlying assumptions about, among other things, the timing of cash flows, expected exposure, probability of default and recovery rates. The fair values of certain structured derivative products are sensitive to unobservable inputs such as default correlations of the referenced credit and volatilities of embedded options. These estimates are susceptible to significant change in future periods as market conditions change.

We use the OIS curves as inputs to measure the fair value of collateralized derivatives. Historically, we valued uncollateralized derivatives by discounting expected future cash flows at a benchmark interest rate, typically LIBOR or its equivalent. In line with evolving industry practice, we changed this approach during 2014. We now view the OIS curve as the base discounting curve for all derivatives, both collateralized and uncollateralized, and have adopted a FFVA to reflect the estimated present value of the future market funding cost or benefit associated with funding uncollateralized derivative exposure at rates other than the OIS rate. This is an area in which a full industry consensus has not yet emerged. We will continue to monitor industry evolution and refine the calculation methodology as necessary.

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Significant inputs related to derivative classes are broken down as follows:

• Credit Derivatives – Use credit default curves and recovery rates which are generally provided by broker quotes and various pricing services. Certain credit derivatives may also use correlation inputs in their model valuation. Correlation is derived using market quotes from brokers and various pricing services.

• Interest Rate Derivatives – Swaps use interest rate curves based on currency that are actively quoted by brokers and other pricing services. Options will also use volatility inputs which are also quoted in the broker market.

• Foreign Exchange ("FX") Derivatives – FX transactions, to the extent possible, use spot and forward FX rates which are quoted in the broker market. Where applicable, we also use implied volatility of currency pairs as inputs.

• Equity Derivatives – Use listed equity security pricing and implied volatilities from equity traded options position.

• Precious Metal Derivatives – Use spot and forward metal rates which are quoted in the broker market.

As discussed earlier, we make fair value adjustments to model valuations in order to ensure that those values represent appropriate estimates of fair value. These adjustments, which are applied consistently over time, are generally required to reflect factors such as bid-ask spreads and counterparty credit risk that can affect prices in arms-length transactions with unrelated third parties. Such adjustments are based on management judgment and may not be observable.

We estimate the counterparty credit risk for financial assets and own credit standing for financial liabilities (the "credit risk adjustments") in determining the fair value measurement. For derivative instruments, we calculate the credit risk adjustment by applying the probability of default of the counterparty to the expected exposure, and multiplying the result by the expected loss given default. We also take into consideration the risk mitigating factors including collateral agreements and master netting arrangements in determining credit risk adjustments. We estimate the implied probability of default based on the credit spread of the specific counterparty observed in the credit default swap market. Where credit default spread of the counterparty is not available, we use the credit default spread of a specific proxy (e.g. the credit default swap spread of the counterparty's parent). Where specific proxy credit default swap is not available, we apply a blended approach based on a combination of credit default swaps referencing to credit names of similar credit standing and the historical rating-based probability of default.

Real estate owned - Fair value is determined based on third party appraisals obtained at the time we take title to the property and, if less than the carrying amount of the loan, the carrying amount of the loan is adjusted to the fair value. The carrying amount of the property is further reduced, if necessary, at least every 45 days to reflect observable local market data, including local area sales data.

Mortgage servicing rights - We elected to measure residential mortgage servicing rights, which are classified as intangible assets, at fair value. The fair value for the residential mortgage servicing rights is determined based on an option adjusted approach which involves discounting servicing cash flows under various interest rate projections at risk-adjusted rates. The valuation model also incorporates our best estimate of the prepayment speed of the mortgage loans, current cost to service and discount rates which are unobservable. As changes in interest rates is a key factor affecting the prepayment speed and hence the fair value of the mortgage servicing rights, we use various interest rate derivatives and forward purchase contracts of mortgage-backed securities to risk-manage the mortgage servicing rights.

Structured notesand deposits – Structured notes and deposits are hybrid instruments containing embedded derivatives and are elected to be measured at fair value in their entirety under fair value option accounting principles. The valuation of hybrid instruments is predominantly driven by the derivative features embedded within the instruments. The valuation of embedded derivatives may include significant unobservable inputs such as correlation of the referenced credit names or volatility of the embedded option.

Cash flows of the funded notes and deposits are discounted at the relevant interest rates for the duration of the instrument adjusted for our own credit spreads. The credit spreads so applied are determined with reference to our own debt issuance rates observed in primary and secondary markets, internal funding rates, and the structured note rates in recent executions.

Long-term debt – We elected to apply fair value option to certain own debt issuances for which fair value hedge accounting otherwise would have been applied. These own debt issuances elected under FVO are traded in secondary markets and, as such, the fair value is determined based on observed prices for the specific instrument. The observed market price of these instruments reflects the effect of our own credit spreads. The credit spreads applied to these instruments were derived from the spreads at the measurement date.

For long-term debt recorded at cost, fair value is determined based on quoted market prices where available. If quoted market prices are not available, fair value is based on dealer quotes, quoted prices of similar instruments, or internally developed valuation models adjusted for own credit risks.

Deposits – For fair value disclosure purposes, the carrying amount of deposits with no stated maturity (e.g., demand, savings, and certain money market deposits), which represents the amount payable upon demand, is considered to generally approximate fair value. For deposits with stated maturities, fair value is estimated by discounting cash flows using market interest rates currently offered on deposits with similar characteristics and maturities.

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19. Litigation and Regulatory Matters

The following supplements, and should be read together with, the disclosure in Note 28, "Litigation and Regulatory Matters," in our 2014 Form 10-K. Only those matters with significant updates and new matters since our disclosure in our 2014 Form 10-K are reported herein.

In addition to the matters described below, and in our 2014 Form 10-Ks, in the ordinary course of business, we are routinely named as defendants in, or as parties to, various legal actions and proceedings relating to activities of our current and/or former operations. These legal actions and proceedings may include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive relief. In the ordinary course of business, we also are subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. In connection with formal and informal inquiries by these regulators, we receive numerous requests, subpoenas and orders seeking documents, testimony and other information in connection with various aspects of our regulated activities.

In view of the inherent unpredictability of litigation and regulatory matters, particularly where the damages sought are substantial or indeterminate or when the proceedings or investigations are in the early stages, we cannot determine with any degree of certainty the timing or ultimate resolution of litigation and regulatory matters or the eventual loss, fines, penalties or business impact, if any, that may result. We establish reserves for litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. Once established, reserves are adjusted from time to time, as appropriate, in light of additional information. The actual costs of resolving litigation and regulatory matters, however, may be substantially higher than the amounts reserved for those matters.

For the litigation and governmental and regulatory matters disclosed below and inNote 28, "Litigation and Regulatory Matters," in our 2014 Form 10-K as to which a loss in excess of accrued liability is reasonably possible in future periods and for which there is sufficient currently available information on the basis of which management believes it can make a reliable estimate, we believe a reasonable estimate could be as much as $60 million for HUSI and its U.S. affiliates. The litigation and governmental and regulatory matters underlying this estimate of possible loss will change from time to time and actual results may differ significantly from this current estimate.

Based on the facts currently known, in respect of each of the below investigations, it is not practicable at this time for us to determine the terms on which these ongoing investigations will be resolved or the timing of such resolution or for us to estimate reliably the amounts, or range of possible amounts, of any fines and/or penalties. As matters progress, it is possible that any fines and/or penalties could be significant.

Given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could have a material adverse effect on our consolidated financial statements in any particular quarterly or annual period.

Credit Card Litigation  In the Speedy Stop Food Stores LLC v. Visa Inc. (Tex. Dist. Ct., Victoria City, No. 13-10-75377-A) case, the court granted plaintiff’s motion for partial summary judgment on the issue of whether plaintiff has antitrust standing and denied defendants’ motion for partial summary judgment on the same issue in April 2015. Discovery is proceeding.

Salveson v. JPMorgan Chase et al. (N.D.Cal. No. 13-CV-5816) The motion for reconsideration of the court’s order granting defendants’ motion to dismiss is fully briefed, and we await a decision from the court.

Checking Account Overdraft Litigation In March 2015, plaintiffs in the state court action (Ofra Levin et al v. HSBC Bank USA, N.A. et al. (N.Y. Sup. Ct. 650562/11) (“State Action”)) filed papers in support of an agreement reached with HSBC Bank USA to settle the claims on a class wide basis for $30 million. The settlement is subject to court approval. The court has scheduled a preliminary approval hearing for July 7, 2015, at which time the court will also consider the federal plaintiffs' motion to intervene in the action.

In the federal court multidistrict litigation (In re HSBC Bank, USA, N.A. Debit Card Overdraft Fee Litigation (E.D.N.Y. 2:13-MD-02451)), HSBC Bank USA filed a motion to stay the federal court action given the settlement in the State Action. Plaintiffs opposed the motion and filed a cross-motion for injunctive relief seeking to prevent the settlement in the State Action from proceeding. In April 2015, the court issued an order denying plaintiffs’ motion for an injunction and granting, in part, HSBC Bank USA’s motion for a stay. The court ruled that discovery may proceed but that the pending motion for class certification would be held in abeyance pending proceedings in the State Action regarding approval of the settlement.

DeKalb County, et al. v. HSBC North America Holdings Inc., et al. In March 2015, the court denied the HSBC defendants’ motion for summary judgment.

Lender-Placed Insurance Matters In April 2015, the court granted preliminary approval of the settlement reached by the parties in the Weller, et al. v. HSBC Mortgage Services, Inc., et al. (D. Col. No. 13-CV-00185) putative class action regarding lender

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placed flood insurance. Under the agreement, HSBC agreed to pay $1.8 million inclusive of claims, attorneys’ fees and administrative costs. The court has scheduled a final settlement approval hearing for October 2015.

Private Mortgage Insurance Matters The court denied the HSBC defendants’ motion for summary judgment, without prejudice.

People of the State of New York v. HSBC Bank USA, National Association and HSBC Mortgage Corporation (USA) On March 30, 2015, the court granted HSBC Mortgage Corporation’s ("HSBC Mortgage") motion for summary judgment and dismissed the New York Attorney General’s (“AG”) Petition. The AG may appeal the court’s decision.

Precious Metals Fix Matters

In re Commodity Exchange Inc., Gold Futures and Options Trading Litigation (Gold Fix Litigation) A second consolidated amended complaint was filed in March 2015, and defendants must file their consolidated response thereto on April 30, 2015.

In re London Silver Fixing, Ltd. Antitrust Litigation (Silver Fix Litigation) Defendants filed a consolidated response to the consolidated amended complaint in March 2015. Plaintiffs filed a second amended complaint in response to the motion in April 2015.

Platinum and Palladium Fix Litigation Plaintiffs filed a consolidated amended complaint in April 2015. Defendants’ consolidated response thereto is due in June 2015.

Madoff Litigation

In December 2008, Bernard L. Madoff ("Madoff") was arrested and ultimately pleaded guilty to running a Ponzi scheme and a trustee was appointed for the liquidation of his firm, Bernard L. Madoff Investment Securities LLC ("Madoff Securities"), an SEC-registered broker-dealer and investment adviser. Various non-U.S. HSBC companies provided custodial, administration and similar services to a number of funds incorporated outside the United States whose assets were invested with Madoff Securities. Plaintiffs (including funds, funds investors and the Madoff Securities trustee, as described below) have commenced Madoff-related proceedings against numerous defendants in a multitude of jurisdictions. Various HSBC companies have been named as defendants in suits in the United States, Ireland, Luxembourg and other jurisdictions. Certain suits (which include U.S. putative class actions) allege that the HSBC defendants knew or should have known of Madoff's fraud and breached various duties to the funds and fund investors.

In March 2015, the U.S. Supreme Court denied the Herald and Thema plaintiffs’ petition for writ ofcertiorari in the In re Herald, Primeo and Thema Securities Litigation. The dismissal of the Herald and Thema plaintiffs’ claims on grounds of forum non conveniens is now complete.

There are many factors that may affect the range of possible outcomes, and the resulting financial impact, of the various Madoff-related proceedings including, but not limited to, the circumstances of the fraud, the multiple jurisdictions in which proceedings have been brought and the number of different plaintiffs and defendants in such proceedings. For these reasons, among others, we are unable to reasonably estimate the aggregate liability or ranges of liability that might arise as a result of these claims but they could be significant. In any event, we consider that we have good defenses to these claims and will continue to defend them vigorously.

Benchmark Rate Litigation

Defendants’ motions to dismiss the amended complaints filed in individual actions were heard in the first quarter of 2015.

Residential Funding Litigation

In December 2013, Residential Funding Company, LLC (“RFC”) filed an action against HSBC Mortgage in Minnesota state court relating to alleged losses RFC suffered as a result of its purchase of approximately 8,800 mortgage loans from HSBC Mortgage between 1986 and 2007. The action subsequently was removed and transferred to the U.S. District Court for the Southern District of New York (“S.D.N.Y.”) and then referred to the Bankruptcy Court for the S.D.N.Y. for disposition in connection with RFC’s pending bankruptcy action. Residential Funding Co. v. HSBC Mortg. Corp. (USA), Adv. Proc. No. 14-01915(MG). An amended complaint was subsequently filed with Rescap Liquidating Trust, as successor to RFC f/k/a Residential Funding Corporation as the named plaintiff. RFC alleges claims for breach of contract for alleged breach of representations and warranties concerning the quality and characteristics of the mortgage loans and contractual indemnification for alleged losses incurred by RFC arising out of purported defects in loans that RFC purchased from HSBC Mortgage and subsequently sold to third parties. In February 2015, the court granted in part and denied in part HSBC Mortgage’s motion to dismiss. The court dismissed breach of contract claims relating to loans purchased before May 14, 2006 on statute of limitations grounds but allowed other claims to proceed. Discovery is proceeding.

Mortgage Securitization Pool Trust Litigation Additional actions have been filed against HSBC Bank USA in its role as trustee for certain trusts by National Credit Union Administration Board, as liquidating agent, and the Western and Southern Life Insurance Company, et al., in the U.S. District Court for the Southern District of New York and Ohio state court, respectively, alleging that the trusts have sustained losses to collateral. These matters are at very early stages.

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Shareholder Derivative Action The nominal corporate defendants (HSBC, HSBC Bank USA, HSBC North America and HSBC USA) filed a motion to dismiss the amended complaint in March 2015. Individual defendants who have been served also responded to the amended complaint.

Charlotte Freeman, et al. v. HSBC Holdings plc, et al.Defendants filed a motion to dismiss in March 2015. In response, plaintiffs filed an amended complaint in April 2015. Motions to dismiss are to be filed in May 2015.

Alfredo Villoldo, et al. v. HSBC Bank USA, N.A., et al. HSBC and HSBC Bank USA filed a motion to dismiss in April 2015.

Other Regulatory and Law Enforcement Investigations 

In November 2014, the Argentine tax authority filed a complaint alleging an unlawful association between HSBC Private Bank Suisse SA, HSBC Bank Argentina and HSBC Bank USA and certain HSBC officers, which allegedly enabled HSBC customers to evade Argentine tax obligations. The Argentine Congress has convened a special committee to investigate the matter and issues related to allegations of evasion of Argentine income taxes broadly. The Committee met on April 1, 2015 and is expected to continue to meet weekly and we are monitoring its proceedings.

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20. New Accounting Pronouncements

The following new accounting pronouncements were adopted effective January 1, 2015:

Ÿ Residential Real Estate Collateralized Consumer Mortgage Loans In January 2014, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") to define an in-substance repossession or foreclosure of residential real estate for purposes of determining whether or not an entity should derecognize a consumer mortgage loan collateralized by that real estate. Under the standard, an in-substance repossession or foreclosure has occurred if the entity has obtained legal title to the real estate as a result of the completion of a foreclosure (even if the borrower has rights to reclaim the property after the foreclosure upon the payment of certain amounts specified by law), or if, through a deed in lieu of foreclosure or other legal agreement, the borrower conveys all interest in the real estate to the entity in satisfaction of the loan. The standard also requires entities to disclose both the amount of foreclosed residential real estate held as well as the recorded investment in consumer mortgage loans collateralized by residential real estate that the entity is in the process of foreclosing upon. We adopted this guidance on January 1, 2015. The adoption of this standard did not have any impact on our financial statements. See Note 4, "Loans," for the new disclosure required by this standard.

• Repurchase to Maturity Transactions, Repurchase Financings, and Disclosures In June 2014, the FASB issued an ASU which changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting and requires secured borrowing accounting for the repurchase agreement in a contemporaneous repurchase financing arrangement. The accounting changes in the ASU are effective for all annual and interim periods beginning January 1, 2015. The ASU also requires new disclosure about repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings to be presented for annual periods beginning January 1, 2015, and for interim periods beginning April 1, 2015. The adoption of this guidance did not have a significant impact on our financial position or results of operations.

The following are accounting pronouncements which will be adopted in future periods:

Ÿ Recognition of Revenue from Contracts with Customers In May 2014, the FASB issued an ASU which provides a principles-based framework for revenue recognition that supersedes virtually all previously issued revenue recognition guidance. Additionally, the ASU requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The core principle of the five-step revenue recognition framework is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU will be effective for all annual and interim periods beginning January 1, 2017. The amendments in the ASU may be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of adoption recognized in equity at the date of initial application. We are currently evaluating the potential impact of adopting this ASU, including determining which transition method to apply.

Ÿ Amendments to the Consolidation Analysis In February 2015, the FASB issued an ASU which rescinds the deferral of VIE consolidation guidance for reporting entities with interests in certain investment funds and provides a new scope exception to registered money market funds and similar unregistered money market funds. The ASU makes several other amendments including a) the elimination of certain criteria previously used for determining whether fees paid to a decision maker represent a variable interest; b) revising the consolidation model for limited partnerships and similar entities which could be variable interest entities or voting interest entities; c) excluding certain fees paid to a decision maker from the risk and benefit test in the primary beneficiary determination if certain conditions are met; and d) reduces the application of the related party guidance for VIEs. The ASU will be effective for all annual and interim periods beginning January 1, 2016 and the guidance can be applied either retrospectively or by recording a cumulative effect adjustment to equity with early adoption permitted. We are currently evaluating the potential impact of adopting this ASU, but currently do not expect the adoption of this guidance will have a significant impact on our financial position or results of operations.

There have been no additional accounting pronouncements issued during the first quarter of 2015 that are expected to have or could have a significant impact on our financial position or results of operations.

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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain matters discussed throughout this Form 10-Q are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, we may make or approve certain statements in future filings with the United States Securities and Exchange Commission ("SEC"), in press releases, or oral or written presentations by representatives of HSBC USA Inc. ("HSBC USA" and together with its subsidiaries, "HUSI") that are not statements of historical fact and may also constitute forward-looking statements. Words such as “may”, “will”, “should”, “would”, “could”, “appears”, “believe”, “intends”, “expects”, “estimates”, “targeted”, “plans”, “anticipates”, “goal”, and similar expressions are intended to identify forward-looking statements but should not be considered as the only means through which these statements may be made. These matters or statements will relate to our future financial condition, economic forecast, results of operations, plans, objectives, performance or business developments and will involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from that which was expressed or implied by such forward-looking statements.

All forward-looking statements are, by their nature, subject to risks and uncertainties, many of which are beyond our control. Our actual future results may differ materially from those set forth in our forward-looking statements. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those in the forward-looking statements:

• uncertain market and economic conditions, uncertainty relating to the U.S. debt and budget matters, the potential for future downgrading of U.S. debt ratings, a decline in housing prices, unemployment levels, tighter credit conditions, changes in interest rates or a prolonged period of low or negative interest rates, the availability of liquidity, unexpected geopolitical events, heightened market concerns over sovereign creditworthiness in over-indebted countries, changes in consumer confidence and consumer spending, and consumer perception as to the continuing availability of credit and price competition in the market segments we serve;

• changes in laws and regulatory requirements;

• the ability to deliver on our regulatory priorities;

• extraordinary government actions as a result of market turmoil;

• capital and liquidity requirements under Basel III, the Federal Reserve Board's ("FRB") Comprehensive Capital Analysis and Review ("CCAR"), and the Dodd-Frank Act stress testing ("DFAST");

• changes in central banks' policies with respect to the provision of liquidity support to financial markets;

• the ability of HSBC Holdings plc ("HSBC" and, together with its subsidiaries, "HSBC Group") and HSBC Bank USA, National Association ("HSBC Bank USA") to fulfill the requirements imposed by the deferred prosecution agreements with the U.S. Department of Justice, the U.S. Attorney's Office for the Eastern District of New York, and the U.S. Attorney's Office for the Northern District of West Virginia, our agreement with the Office of the Comptroller of the Currency, our other consent agreements as well as guidance from regulators generally;

• the use of us as a conduit for illegal activities without our knowledge by third parties;

• the ability to successfully manage our risks;

• the financial condition of our clients and counterparties and our ability to manage counterparty risk;

• concentrations of credit and market risk;

• the ability to successfully implement changes to our operational practices as needed and/or required from time to time;

• damage to our reputation;

• the ability to attract and retain customers and to retain key employees;

• the effects of competition in the markets where we operate including increased competition for non-bank financial services companies, including securities firms;

• disruption in our operations from the external environment arising from events such as natural disasters, terrorist attacks, global pandemics, or essential utility outages;

• a failure in or a breach of our operation or security systems or infrastructure, or those of third party servicers or vendors, including as a result of cyber attacks;

• third party suppliers' and outsourcing vendors' ability to provide adequate services;

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• losses suffered due to the negligence or misconduct of our employees or the negligence or misconduct on the part of employees of third parties;

• our ability to meet our funding requirements;

• adverse changes to our credit ratings;

• our ability to cross-sell our products to existing customers;

• increases in our allowance for credit losses and changes in our assessment of our loan portfolios;

• changes in Financial Accounting Standards Board ("FASB") and International Accounting Standards Board ("IASB") accounting standards and their interpretation;

• heightened regulatory and government enforcement scrutiny of financial institutions;

• continued heightened regulatory scrutiny with respect to residential mortgage servicing practices, with particular focus on loss mitigation, foreclosure prevention and outsourcing;

• changes to our mortgage servicing and foreclosure practices;

• changes in the methodology for determining benchmark rates;

• heightened regulatory and government enforcement scrutiny of financial markets, with a particular focus on foreign exchange;

• the possibility of incorrect assumptions or estimates in our financial statements, including reserves related to litigation, deferred tax assets and the fair value of certain assets and liabilities;

• changes in bankruptcy laws to allow for principal reductions or other modifications to mortgage loan terms;

• additional financial contribution requirements to the HSBC North America Holdings Inc. ("HSBC North America") pension plan; and

• unexpected and/or increased expenses relating to, among other things, litigation and regulatory matters, remediation efforts, penalties and fines.

• the other risk factors and uncertainties described under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014 ("2014 Form 10-K").

Forward-looking statements are based on our current views and assumptions and speak only as of the date they are made. We undertake no obligation to update any forward-looking statement to reflect subsequent circumstances or events. You should, however, consider any additional disclosures of a forward-looking nature that arise after the date hereof as may be discussed in any of our subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

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Executive Overview

HSBC USA is an indirect wholly-owned subsidiary of HSBC North America, which is an indirect wholly-owned subsidiary of HSBC. HUSI may also be referred to in Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") as "we", "us" or "our".

Current Environment  The U.S. economy continued its recovery during the first quarter of 2015. While consumer sentiment reached an 11 year high in January, modest declines occurred in February and March due to bad weather and a bump in gasoline prices which resulted in overall sentiment remaining broadly flat at March 31, 2015 compared with year-end levels. In March, the Federal Reserve Board dropped its assurance that it would remain patient before acting on rates, however indications were that future increases may begin later and with a smaller succession of increases than previously expected. The prolonged period of low interest rates continues to put pressure on spreads earned on our deposit base.

Although the number of jobs created in March was much lower than anticipated, the U.S. economy added almost 600 thousand jobs during the first quarter of 2015, while the number of long-term unemployed fell almost 8 percent since December 31, 2014 and total unemployment fell to 5.5 percent as of March 2015. Despite these trends, headwinds remain as wage growth remains weak, an elevated number of part-time workers continue to seek full-time work, the number of discouraged people who have stopped looking for work remains elevated and economic uncertainty remains high in many economies outside the U.S., including Latin America where tepid economic activity has continued into the first quarter of 2015. The sustainability of the economic recovery will be determined by numerous variables including consumer sentiment, energy prices, credit market volatility, employment levels and housing market conditions which will impact corporate earnings and the capital markets. These conditions in combination with global economic conditions, fiscal policy, geo-political concerns and the impact of recent regulatory changes including the on-going implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act" or "Dodd-Frank") and the heightened regulatory and government scrutiny of financial institutions will continue to impact our results in 2015 and beyond.

While the housing market in the U.S. continues to recover, the strength of recovery varies by market. Certain courts and state legislatures have issued rules or statutes relating to foreclosures and scrutiny of foreclosure documentation has increased in some courts. Also, in some areas, officials are requiring additional verification of information filed prior to the foreclosure proceeding. The combination of these factors has led to a significant backlog of foreclosures in several jurisdictions which will continue to take time to resolve.

Performance, Developments and Trends The following table sets forth selected financial highlights of HSBC USA for the three months ended March 31, 2015 and 2014 and as of March 31, 2015 and December 31, 2014:

Three Months Ended March 31,	2015			2014
	(dollars are in millions)
Net Income	$	164		$	104
Rate of return on average:
Total assets	.3		%	.2		%
Total common shareholders' equity	3.8			2.3
Net interest margin	1.39			1.30
Efficiency ratio	72.6			73.6
Commercial net charge-off ratio(1)	.04			.20
Consumer net charge-off ratio(1)	.49			.51

⁽¹⁾  Excludes loans held for sale.

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	March 31, 2015			December 31, 2014
	(dollars are in millions)
Additional Select Ratios:
Allowance as a percent of loans(1)	.86		%	.87		%
Commercial allowance as a percent of loans(1)	.87			.85
Consumer allowance as a percent of loans(1)	.85			.96
Consumer two-months-and-over contractual delinquency	5.24			5.59
Loans to deposits ratio(2)	93.52			91.94
Total capital to risk weighted assets	16.34			15.78
Tier 1 capital to risk weighted assets	12.61			11.41
Common equity Tier 1 ratio	11.78			10.33
Total shareholders’ equity to total assets	10.45			9.14
Select Balance Sheet Data:
Cash and interest bearing deposits with banks	$	33,221		$	31,698
Trading assets	22,444			21,092
Securities available-for-sale	33,096			30,140
Loans:
Commercial loans	61,647			58,087
Consumer loans	19,811			19,654
Total loans	81,458			77,741
Deposits	119,094			116,118

⁽¹⁾  Excludes loans held for sale.

⁽²⁾  Represents period end loans, net of allowance for loan losses, as a percentage of domestic deposits equal to or less than $100,000.

Net income was $164 million during the three months ended March 31, 2015 compared with income of $104 million during the three months ended March 31, 2014. Income before income tax was $240 million during the three months ended March 31, 2015 compared with income of $253 million during the three months ended March 31, 2014. The slight decrease in income before income tax reflects a higher provision for credit losses, higher operating expenses and lower other revenues, partially offset by higher net interest income.

Our results in all periods were impacted by the change in the fair value of our own debt attributable to credit spread for which we have elected fair value option which distorts comparability of the performance trends of our business between periods. The following table summarizes the impact of this item for all periods presented:

Three Months Ended March 31,	2015			2014
	(in millions)
Income before income tax, as reported	$	240		$	253
Fair value movement on own fair value option debt attributable to credit spread	(70		)	(19		)
Adjusted performance(1)	$	170		$	234

⁽¹⁾  Represents a non-U.S. GAAP financial measure.

Excluding the impact of the change in the fair value of our own debt attributable to credit spread for which we have elected fair value option in the table above, our adjusted performance for the three months ended March 31, 2015 decreased $64 million compared with the prior year period as lower other revenues, driven primarily by lower trading revenue, a higher provision for credit losses and higher operating expenses were partially offset by higher net interest income.

See "Results of Operations" for more detailed discussion of our operations trends. In addition, see "Balance Sheet Review" for further discussion on our receivable trends, "Liquidity and Capital Resources" for further discussion on funding and capital and "Credit Quality" for additional discussion on our credit trends.

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We continue to focus on cost optimization efforts to ensure realization of cost efficiencies. To date, we have identified and implemented various opportunities to reduce costs through organizational structure redesign, vendor spending, discretionary spending and other general efficiency initiatives which have resulted in workforce reductions. Additional cost reduction opportunities have been identified and are in the process of implementation. These efforts continue and, as a result, we may incur restructuring charges in future periods, the amount of which will depend upon the actions that ultimately are implemented. We also continue to evaluate our overall operations as we seek to optimize our risk profile and cost efficiencies as well as our liquidity, capital and funding requirements. This could result in further strategic actions that may include changes to our legal structure, asset levels, cost structure or product offerings in support of HSBC’s strategic priorities.

During the first quarter of 2015, HSBC USA repaid $4,000 million of senior long-term debt previously issued to HSBC North America and HSBC Bank USA repaid $900 million of subordinated long-term debt previously issued to HSBC USA. In conjunction with these repayments, HSBC USA received a capital contribution of $4,000 million from its immediate parent, HSBC North America Inc. ("HNAI"), in exchange for one share of common stock and HSBC USA made capital contributions to its subsidiary, HSBC Bank USA, of $2,400 million in exchange for two shares of common stock and $2,500 million in exchange for 250 shares of non-cumulative preferred stock. These capital actions were taken to support our growth strategy and to strengthen the Basel III regulatory capital positions of both HSBC USA and HSBC Bank USA.

Basis of Reporting

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Certain reclassifications have been made to prior year amounts to conform to the current year presentation.

In addition to the U.S. GAAP financial results reported in our consolidated financial statements, MD&A includes reference to the following information which is presented on a non-U.S. GAAP basis:

Group Reporting Basis We report financial information to HSBC in accordance with HSBC Group accounting and reporting policies which apply International Financial Reporting Standards ("IFRS") and, as a result, our segment results are prepared and presented using financial information prepared on the basis of HSBC Group's accounting and reporting policies ("Group Reporting Basis"). Because operating results on the Group Reporting Basis (a non-U.S. GAAP financial measure) are used in managing our businesses and rewarding performance of employees, our management also separately monitors net income under this basis of reporting. The following table reconciles our U.S. GAAP versus Group Reporting Basis net income:

Three Months Ended March 31,	2015			2014
	(in millions)
Net income – U.S. GAAP basis	$	164		$	104
Adjustments, net of tax:
Loan impairment	14			23
Loans held for sale	8			—
Pension costs	1			8
Securities	(2		)	(2		)
Loan origination	(3		)	(4		)
Property	(3		)	—
Derivatives	(3		)	—
Other	(11		)	(3		)
Net income – Group Reporting Basis	165			126
Tax expense – Group Reporting Basis	96			142
Profit before tax – Group Reporting Basis	$	261		$	268

The significant differences between U.S. GAAP and Group Reporting Basis impacting our results presented in the table above are discussed in more detail within "Basis of Reporting" in our 2014 Form 10-K. There have been no significant changes since December 31, 2014 in the differences between U.S. GAAP and Group Reporting Basis impacting our results.

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Balance Sheet Review

We utilize deposits and borrowings from various sources to provide liquidity, fund balance sheet growth, meet cash and capital needs, and fund investments in subsidiaries. The following table provides balance sheet totals at March 31, 2015 and increases (decreases) since December 31, 2014:

			Increase (Decrease) From
			December 31, 2014
	March 31, 2015		Amount			%
	(dollars are in millions)
Period end assets:
Short-term investments	$	40,186	$	7,075		21.4	%
Loans, net	80,755		3,694			4.8
Loans held for sale	405		(207		)	(33.8	)
Trading assets	22,444		1,352			6.4
Securities	47,111		3,502			8.0
Other assets	10,693		639			6.4
	$	201,594	$	16,055		8.7	%
Funding sources:
Total deposits	$	119,094	$	2,976		2.6	%
Trading liabilities	11,288		3,124			38.3
Short-term borrowings	15,653		2,858			22.3
Long-term debt	29,420		1,896			6.9
All other liabilities	5,068		1,097			27.6
Shareholders’ equity	21,071		4,104			24.2
	$	201,594	$	16,055		8.7	%

Short-Term Investments  Short-term investments include cash and due from banks, interest bearing deposits with banks, federal funds sold and securities purchased under agreements to resell. In managing our overall liquidity, short-term investments increased since December 31, 2014, driven by recent debt issuances which have not been re-deployed into loans as well as increases in non-core deposits, net trading liabilities and short-term borrowings. Balances will fluctuate from period to period depending upon our liquidity position at the time.

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Loans, Net  The following summarizes our loan balances at March 31, 2015 and increases (decreases) since December 31, 2014:

			Increase (Decrease) From
			December 31, 2014
	March 31, 2015		Amount			%
	(dollars are in millions)
Commercial loans:
Construction and other real estate	$	10,901	$	601		5.8	%
Business and corporate banking	19,251		1,432			8.0
Global banking(1)	28,029		1,642			6.2
Other commercial loans	3,466		(115		)	(3.2	)
Total commercial loans	61,647		3,560			6.1
Consumer loans:
Residential mortgages	16,991		330			2.0
Home equity mortgages	1,716		(68		)	(3.8	)
Credit cards	680		(40		)	(5.6	)
Other consumer	424		(65		)	(13.3	)
Total consumer loans	19,811		157			.8
Total loans	81,458		3,717			4.8
Allowance for credit losses	703		23			3.4
Loans, net	$	80,755	$	3,694		4.8	%

⁽¹⁾  Represents large multinational firms including globally focused U.S. corporate and financial institutions and U.S. dollar lending to multinational banking customers managed by HSBC on a global basis. Also includes loans to HSBC affiliates which totaled $5,016 million and $4,821 million at March 31, 2015 and December 31, 2014, respectively.

Commercial loans increased compared with December 31, 2014 due to new business activity which reflects our continued focus on expanding our core offerings and proactively targeting companies with international banking requirements in key growth markets.

Residential mortgage loans increased compared with December 31, 2014 as we continue to target new residential mortgage loan originations towards our Premier and Advance customer relationships and sell newly originated conforming loans to PHH Mortgage Corporation ("PHH Mortgage"). Home equity mortgages decreased compared with December 31, 2014 reflecting net paydowns as our focus continues to shift towards residential mortgage loans and new origination volume continues to decline.

Prior to 2014, real estate markets in a large portion of the United States were affected by stagnation or declines in property values for a number of years. While the loan-to-value ("LTV") ratios for our mortgage loan portfolio have generally deteriorated since origination, we have seen a general improvement in the LTVs for our mortgage loan portfolio during the last two years. The following table presents LTVs for our mortgage loan portfolio, excluding mortgage loans held for sale:

	LTVs at March 31, 2015(1)(2)				LTVs at December 31, 2014(1)(2)
	First Lien		Second Lien		First Lien		Second Lien
LTV < 80%	93.1	%	76.3	%	92.3	%	74.5	%
80% < LTV < 90%	3.9		11.2		4.2		11.9
90% < LTV < 100%	1.9		7.3		2.1		7.7
LTV > 100%	1.1		5.2		1.3		6.0
Average LTV for portfolio	56.9		60.7		57.4		61.6

⁽¹⁾  LTVs for first liens are calculated using the loan balance as of the reporting date. LTVs for second liens are calculated using the loan balance as of the reporting date plus the senior lien amount at origination. Current estimated property values are derived from the property's appraised value at the time of loan origination updated by the change in the Federal Housing Finance Agency's (formerly known as the Office of Federal Housing Enterprise Oversight) house pricing index ("HPI") at either a Core Based Statistical Area ("CBSA") or state level. The estimated value of the homes could differ from actual fair values due to changes in condition of the underlying property, variations in housing price changes within metropolitan statistical areas and other factors. As a result, actual property values associated with loans that end in foreclosure may be significantly lower than the estimates used for purposes of this disclosure.

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⁽²⁾  Current property values are calculated using the most current HPIs available and applied on an individual loan basis, which results in an approximate three month delay in the production of reportable statistics. Therefore, the information in the table above reflects current estimated property values using HPIs as of December 31, 2014 and September 30, 2014, respectively.

Credit card receivable balances decreased compared with December 31, 2014 reflecting seasonal paydowns.

Other consumer loans decreased since December 31, 2014 reflecting paydowns.

Loans Held for Sale  The following table summarizes loans held for sale at March 31, 2015 and increases (decreases) since December 31, 2014:

			Increase (Decrease) From
			December 31, 2014
	March 31, 2015		Amount			%
	(dollars are in millions)
Commercial loans	$	291	$	(237	)	(44.9	)%
Consumer loans:
Residential mortgages	24		6			33.3	%
Other consumer	90		24			36.4
Total consumer loans	114		30			35.7	%
Total loans held for sale	$	405	$	(207	)	(33.8	)%

Commercial loans held for sale decreased compared with December 31, 2014. Balances will fluctuate from period to period depending upon volume and level of activity. Commercial syndicated loans that are originated with the intent of selling them to unaffiliated third parties and commercial loans that we purchased from the secondary market and hold as hedges against our exposure to certain total return swaps are classified as commercial loans held for sale and are recorded at fair value as we have elected to designate these loans under the fair value option. The fair value of commercial loans held for sale under these programs was $255 million and $384 million at March 31, 2015 and December 31, 2014, respectively.

Commercial loans held for sale also included $34 million and $44 million of global banking loans at March 31, 2015 and December 31, 2014, respectively, which were transferred to held for sale during 2014, as well as commercial real estate loans of $2 million and $100 million at March 31, 2015 and December 31, 2014, respectively.

Residential mortgage loans held for sale increased slightly compared with December 31, 2014. We sell all our agency eligible loan originations servicing released directly to PHH Mortgage. Also included in residential mortgage loans held for sale are subprime residential mortgage loans of $4 million at both March 31, 2015 and December 31, 2014 which were acquired from unaffiliated third parties and from HSBC Finance Corporation ("HSBC Finance") with the intent of securitizing or selling the loans to third parties.

Other consumer loans held for sale includes student loans which we no longer originate.

Excluding the commercial loans designated under fair value option discussed above, loans held for sale are recorded at the lower of amortized cost or fair value. The valuation allowance on consumer loans held for sale was $12 million and $15 million at March 31, 2015 and December 31, 2014, respectively. The valuation allowance on commercial loans held for sale was $12 million and $5 million at March 31, 2015 and December 31, 2014, respectively.

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Trading Assets and Liabilities  The following table summarizes trading assets and liabilities balances at March 31, 2015 and increases (decreases) since December 31, 2014:

			Increase (Decrease) From
			December 31, 2014
	March 31, 2015		Amount			%
	(dollars are in millions)
Trading assets:
Securities(1)	$	12,628	$	(870	)	(6.4	)%
Precious metals	3,310		1,318			66.2
Derivatives, net(2)	6,506		904			16.1
	$	22,444	$	1,352		6.4	%
Trading liabilities:
Securities sold, not yet purchased	$	646	$	(37	)	(5.4	)%
Payables for precious metals	—		(22		)	(100.0	)
Derivatives, net(3)	10,642		3,183			42.7
	$	11,288	$	3,124		38.3	%

⁽¹⁾  See Note 2, "Trading Assets and Liabilities," in the accompanying consolidated financial statements for a breakout of trading securities by category.

⁽²⁾  At March 31, 2015 and December 31, 2014 the fair value of derivatives included in trading assets has been reduced by $6,573 million and $4,811 million, respectively, relating to amounts recognized for the obligation to return cash collateral received under master netting agreements with derivative counterparties.

⁽³⁾  At March 31, 2015 and December 31, 2014 the fair value of derivatives included in trading liabilities has been reduced by $1,084 million and $1,724 million, respectively, relating to amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.

Securities balances decreased compared with December 31, 2014 due primarily to a decrease in foreign sovereign guaranteed positions, partially offset by increases in U.S. Treasury and U.S. government agency mortgage-backed securities. Securities positions are held to mitigate the risks of interest rate products issued to customers of domestic and emerging markets. Balances of securities sold, not yet purchased decreased since December 31, 2014 reflecting a decrease in U.S. Treasury positions related to hedges of derivatives in the interest rate trading portfolio.

Precious metals trading assets increased compared with December 31, 2014 driven by an increase in our own gold and silver inventory positions held as hedges for client activity. The increase also reflects a slight increase in spot rates for certain metals. Precious metal positions may not represent our net underlying exposure as we may use derivatives contracts to reduce our risk associated with these positions, the fair value of which would appear in derivatives in the table above.

Derivative asset and liability balances both increased since December 31, 2014 mainly from market movements as valuations of interest rate and foreign exchange derivatives increased.

Securities   Securities include securities available-for-sale and securities held-to-maturity. With regards to securities available for sale, balances will fluctuate between periods depending upon our liquidity position at the time. The increase in balances since December 31, 2014 largely reflects net purchases of U.S. government sponsored and government agency mortgage-backed securities partially offset by net sales of U.S. Treasury securities as part of a continuing strategy to re-balance the securities portfolio for risk management purposes based on the current interest rate environment and liquidity needs.

Other Assets  Other assets includes intangibles and goodwill. Other assets increased since December 31, 2014 due primarily to higher derivative balances associated with hedging activities, an increase in net deferred tax assets and higher investments in Federal Home Loan Bank stock.

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Deposits  The following summarizes deposit balances by major depositor categories at March 31, 2015 and increases (decreases) since December 31, 2014:

			Increase (Decrease) From
			December 31, 2014
	March 31, 2015		Amount			%
	(dollars are in millions)
Individuals, partnerships and corporations	$	102,662	$	6,275		6.5	%
Domestic and foreign banks	15,222		(3,357		)	(18.1	)
U.S. government and states and political subdivisions	881		56			6.8
Foreign governments and official institutions	329		2			.6
Total deposits	$	119,094	$	2,976		2.6	%
Total core deposits(1)	$	86,779	$	2,293		2.7	%

⁽¹⁾  Core deposits, as calculated in accordance with Federal Financial Institutions Examination Council ("FFIEC") guidelines, generally include all domestic demand, money market and other savings accounts, as well as time deposits with balances not exceeding $100,000.

Deposit balances increased since December 31, 2014 largelydue toan increase in wholesale time deposits driven by new issuances, higher levels of commercial savings reflecting new business activity in key growth markets and increased deposits from individuals driven by the impact of promotional rates offered on savings accounts in our Premier segment. These increases were partially offset by reductions in call deposits from banks as counterparties seek alternative placement options given the low rate environment. The strategy for our core retail banking business includes building relationship deposits across multiple markets, channels and segments. This strategy involves various initiatives, such as:

• HSBC Premier, a premium service wealth and relationship banking proposition designed for the internationally-minded client with a dedicated premier relationship manager. Total Premier deposits increased to $21,285 million at March 31, 2015 as compared with $20,343 million at December 31, 2014; and

• Expanding our existing customer relationships by needs-based sales of wealth, banking and mortgage products.

We continue to actively manage our balance sheet to increase profitability while maintaining adequate liquidity.

Short-Term Borrowings  Short-term borrowings increased since December 31, 2014 primarily due to increased levels of securities sold under agreements to repurchase resulting from the management of our short-term liquidity positions, partially offset by a decrease in commercial paper outstanding.

Long-Term Debt  Long-term debt increased compared with December 31, 2014 reflecting the impact of debt issuances, including increased borrowings from the Federal Home Loan Bank of New York ("FHLB"), partially offset by debt repayments and retirements. Debt issuances during the three months ended March 31, 2015 totaled $8,956 million, of which $17 million was issued by HSBC Bank USA. During the first quarter of 2015, HSBC USA repaid $4,000 million of senior debt previously issued to HSBC North America. See Note 15, "Retained Earnings and Regulatory Capital Requirements," for additional details.

Incremental issuances from the $40 billion HSBC Bank USA Global Bank Note Program totaled $17 million during the three months ended March 31, 2015. Total debt outstanding under this program was $4,499 million and $4,501 million at March 31, 2015 and December 31, 2014, respectively. We anticipate using the Global Bank Note Program more in the future as part of our efforts designed to minimize overall funding costs while accessing diverse funding channels.

Incremental issuances from our shelf registration statement with the SEC totaled $4,339 million of senior debt during the three months ended March 31, 2015, which included $3,300 million of senior notes issued by HSBC USA in February as well as $1,039 million of structured notes. Total long-term debt outstanding under this shelf was $18,418 million and $17,161 million at March 31, 2015 and December 31, 2014, respectively.

Borrowings from the FHLB totaled $5,600 million and $1,000 million at March 31, 2015 and December 31, 2014, respectively.

All Other Liabilities  All other liabilities increased compared with December 31, 2014 due primarily to higher outstanding settlement balances related to security purchases and higher derivative balances associated with hedging activities.

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Results of Operations

Net Interest Income  Net interest income is the total interest income on earning assets less the total interest expense on deposits and borrowed funds. In the discussion that follows, interest income and rates are presented and analyzed on a taxable equivalent basis to permit comparisons of yields on tax-exempt and taxable assets. An analysis of consolidated average balances and interest rates on a taxable equivalent basis is presented in this MD&A under the caption "Consolidated Average Balances and Interest Rates."

The significant components of net interest margin are summarized in the following table:

				2015 Compared  to 2014 Increase (Decrease)
Three Months Ended March 31,	2015			Volume			Rate			2014
	(dollars are in millions)
Interest income:
Short-term investments	$	22		$	7		$	(1	)	$	16
Trading securities	95			8			39			48
Securities	204			(35		)	28			211
Commercial loans	320			59			(26		)	287
Consumer loans	181			6			(2		)	177
Other	15			(1		)	6			10
Total interest income	837			44			44			749
Interest expense:
Deposits	46			12			(1		)	35
Short-term borrowings	11			(3		)	8			6
Long-term debt	167			50			(53		)	170
Tax liabilities and other	3			(3		)	(9		)	15
Total interest expense	227			56			(55		)	226
Net interest income – taxable equivalent basis	610			$	(12	)	$	99		523
Less: tax equivalent adjustment	4									4
Net interest income – non taxable equivalent basis	$	606								$	519
Yield on total interest earning assets	1.91		%							1.86		%
Cost of total interest bearing liabilities	.69									.73
Interest rate spread	1.22									1.13
Benefit from net non-interest paying funds(1)	.17									.17
Net interest margin on average earning assets	1.39		%							1.30		%

⁽¹⁾  Represents the benefit associated with interest earning assets in excess of interest bearing liabilities. Increased percentages reflect growth in this excess, while decreased percentages reflect a reduction in this excess.

Net interest incomeincreased during the three months ended March 31, 2015 due to an increase in interest income, driven primarily by higher income from trading securities and commercial loans, while interest expense was relatively flat.

Short-term investments Higher interest income during the three months ended March 31, 2015 reflects higher average balances, primarily in securities purchased under agreements to resell.

Trading securities The increase in interest income during the three months ended March 31, 2015 was driven primarily by a shift in asset mix to longer term, higher yielding securities and, to a lesser extent, higher average securities balances. Securities in the trading portfolio are managed as hedges against the derivative activity of our customers, which, in response to the current interest rate environment, has shifted towards longer term, higher yielding returns.

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Securities Interest income decreased during the three months ended March 31, 2015 due primarily to lower average outstanding balances which reflects the sales of U.S. Treasury, U.S. government agency mortgage-backed and other asset-backed securities, partially offset by a shift in asset mix to higher yielding securities.

Commercial loans Interest income increased during the three months ended March 31, 2015 driven by higher average balances due to loan growth, partially offset by lower yields on newly originated loans and refinanced loans. Lower yields reflect market conditions and a continued focus on higher quality lending to reduce credit risk exposure in our loan portfolio.

Consumer loans Interest income increased during the three months ended March 31, 2015 driven by higher residential mortgage average balances, partially offset by lower yields on newly originated loans. Lower yields on newly originated loans reflect market conditions and a continued focus on higher quality lending to reduce credit risk exposure in our loan portfolio.

Deposits Higher interest expense during the three months ended March 31, 2015 primarily reflects the impact of higher average interest-bearing deposit balances.

Short-term borrowings Higher interest expense during the three months ended March 31, 2015, reflects higher rates paid on these borrowings, partially offset by lower average outstanding borrowings, primarily in securities sold under repurchase agreements.

Long-term debt Interest expense was lower in the three months ended March 31, 2015 driven by a shift in mix towards lower yielding non-subordinated debt, partially offset by higher outstanding borrowings.

Tax liabilities and other Interest expense decreased during the three months ended March 31, 2015 reflecting the impact of the conclusion of certain state and local tax audits in the second quarter of 2014 which resulted in the settlement of significant uncertain tax positions covering a number of years.

Provision for Credit Losses  The following table summarizes the provision for credit losses associated with our various loan portfolios:

							Increase (Decrease)
Three Months Ended March 31,	2015			2014			Amount			%
	(dollars are in millions)
Commercial:
Construction and other real estate	$	2		$	2		$	—		—	%
Business and corporate banking	24			19			5			26.3
Global banking	21			7			14			*
Other commercial	1			(4		)	5			*
Total commercial	$	48		$	24		$	24		100.0
Consumer:
Residential mortgages	—			(16		)	16			100.0
Home equity mortgages	(2		)	2			(4		)	*
Credit card receivables	3			5			(2		)	(40.0	)
Other consumer	4			1			3			*
Total consumer	5			(8		)	13			*
Total provision for credit losses	$	53		$	16		$	37		*
Provision as a percentage of average loans, annualized	0.3		%	0.1		%

* Not meaningful.

Our provision for credit losses increased $37 million during the three months ended March 31, 2015 driven by a higher provision for credit losses in our commercial loan portfolio and, to a lesser extent, in our consumer loan portfolio. During the three months ended March 31, 2015, we increased our allowance for credit losses as the provision for credit losses was higher than net charge-offs by $23 million.

The provision for credit losses in our commercial portfolio increased $24 million during the three months ended March 31, 2015. The increase was driven primarily by downgrades, reflecting weaknesses in the financial circumstances of certain customer relationships, higher provisions associated with oil and gas industry loan exposures and loan growth. Crude oil prices remained depressed during the first quarter of 2015 and as a result of these market conditions, we downgraded certain credits which resulted in a $12 million increase to the allowance for credit losses. We will continue to conduct quarterly reviews of our oil and gas industry credit exposures to ensure our credit grades continue to reflect current conditions. If oil and gas prices stay at end of March levels for an extended period of time, further adjustments to our allowance for credit losses may be required.

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The provision for credit losses on residential mortgages including home equity mortgages increased$12 million during the three months ended March 31, 2015, as the positive impacts from lower severity estimates due to improvements in home prices, continued improvements in economic and credit conditions, including lower dollars of delinquency on accounts less than 180 days contractually delinquent and the continued origination of higher quality Premier mortgages were more pronounced in the prior year period. The first quarter of 2015 also reflects lower loss estimates associated with the remediation of certain mortgage servicing activities.

The provision for credit losses associated with credit card receivables decreased$2 million during the three months ended March 31, 2015.The decrease reflects lower outstanding balances, continued improvements in economic and credit conditions, including improvements in delinquency roll rates.

Our methodology and accounting policies related to the allowance for credit losses are presented in our 2014 Form 10-K under the caption "Critical Accounting Policies and Estimates" and in Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements." See "Credit Quality" in this MD&A for additional discussion on the allowance for credit losses associated with our various loan portfolios.

Other Revenues  The following table summarizes the components of other revenues:

							Increase (Decrease)
Three Months Ended March 31,	2015			2014			Amount			%
	(in millions)
Credit card fees	$	10		$	14		$	(4	)	(28.6	)%
Other fees and commissions	182			173			9			5.2
Trust income	35			31			4			12.9
Trading revenue	33			133			(100		)	(75.2	)
Net other-than-temporary impairment losses	—			(2		)	2			100.0
Other securities gains, net	23			22			1			4.5
Servicing and other fees from HSBC affiliates	56			47			9			19.1
Residential mortgage banking revenue	19			48			(29		)	(60.4	)
Gain on instruments designated at fair value and related derivatives	85			28			57			*
Other income:
Valuation of loans held for sale	(6		)	1			(7		)	*
Insurance	5			3			2			66.7
Miscellaneous income	22			2			20			*
Total other income	21			6			15			*
Total other revenues	$	464		$	500		$	(36	)	(7.2	)%

* Not meaningful.

Credit card fees  Credit card fees decreased in the three months ended March 31, 2015 due to higher cost estimates associated with our credit card rewards program.

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Other fees and commissions  Other fees and commissions increased in the three months ended March 31, 2015 largely due to higher fee based income resulting from increased levels of commercial lending activity, partially offset by lower custodial fees due to a decrease in precious metals average inventory held under custody. The following table summarizes the components of other fees and commissions:

					Increase (Decrease)
Three Months Ended March 31,	2015		2014		Amount			%
	(in millions)
Account services	$	69	$	70	$	(1	)	(1.4	)%
Credit facilities	63		52		11			21.2
Custodial fees	3		11		(8		)	(72.7	)
Other fees	47		40		7			17.5
Total other fees and commissions	$	182	$	173	$	9		5.2	%

Trust income  Trust income increased in the three months ended March 31, 2015 reflecting higher fee income associated with our management of fixed income assets driven primarily by growth in emerging market debt sales.

Trading revenue  Trading revenue is generated by participation in the foreign exchange, rates, credit, equities and precious metals markets. The following table presents trading related revenue by business activity and includes net interest income earned on trading instruments, as well as an allocation of the funding benefit or cost associated with the trading positions. The trading related net interest income component is included in net interest income on the consolidated statement of income. Trading revenues related to the mortgage banking business are included in residential mortgage banking revenue.

							Increase (Decrease)
Three Months Ended March 31,	2015			2014			Amount			%
	(in millions)
Trading revenue	$	33		$	133		$	(100	)	(75.2	)%
Net interest income	65			19			46			*
Trading related revenue	$	98		$	152		$	(54	)	(35.5	)%
Business Activities:
Derivatives(1)	$	42		$	75		$	(33	)	(44.0	)%
Balance sheet management	(8		)	4			(12		)	*
Foreign exchange	56			57			(1		)	(1.8	)
Precious metals	15			18			(3		)	(16.7	)
Capital financing	(4		)	—			(4		)	*
Other trading	(3		)	(2		)	(1		)	(50.0	)
Trading related revenue	$	98		$	152		$	(54	)	(35.5	)%

* Not meaningful.

⁽¹⁾  Includes derivative contracts related to credit default and cross-currency swaps, equities, interest rates and structured credit products.

Trading related revenuedecreased during the three months ended March 31, 2015 primarily due to lower revenue from derivatives and balance sheet management activities.

Trading revenue from derivative products decreased during the three months ended March 31, 2015 due to the performance of our legacy structured credit products, which included lower valuation gains, as well as lower new deal activity in emerging markets related products driven by less stable economic conditions in Latin America, partially offset by higher net interest income on bond positions held as hedges against derivative exposures.

Trading revenue related to balance sheet management activities decreased during the three months ended March 31, 2015 primarily due to the performance of economic hedge positions used to manage interest rate risk.

Foreign exchange trading revenue was relatively flat during the three months ended March 31, 2015.

Precious metals revenue decreased during the three months ended March 31, 2015 driven by reduced trade volumes as investor demand shifted in favor of other assets.

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Capital financing revenue decreased during the three months ended March 31, 2015 due to valuation adjustments on credit default swap hedge positions.

Net other-than-temporary impairment losses During the three months ended March 31, 2015, there were no other-than-temporary impairment losses recognized. During the three months ended March 31, 2014, one debt security held by a consolidated variable interest entity ("VIE") otherwise known as Bryant Park, which was previously determined to be other-than-temporarily impaired, had a change to its other-than-temporary impairment estimate related to the credit component which was recognized in earnings.

Other securities gains (losses), net  We maintain various securities portfolios as part of our balance sheet diversification and risk management strategies. During the three months ended March 31, 2015 and 2014, we sold $5,491 million and $6,855 million, respectively, of primarily U.S. Treasury, U.S. government agency mortgage-backed and other asset-backed securities as part of a continuing strategy to re-balance the securities portfolio for risk management purposes based on the current interest rate environment. The gross realized gains and losses from sales of securities in both periods, which is included as a component of other securities gains, net above, are summarized in Note 3, "Securities," in the accompanying consolidated financial statements.

Servicing and other fees from HSBC affiliates Affiliate income increased in the three months ended March 31, 2015, largely reflecting higher billings associated with internal audit activities performed for other HSBC affiliates and a revenue sharing payment associated with the sale of certain investments managed on behalf of HSBC Finance.

Residential mortgage banking revenue  The following table presents the components of residential mortgage banking revenue. The net interest income component reflected in the table is included in net interest income in the consolidated statement of income and reflects actual interest earned, net of interest expense and corporate transfer pricing.

							Increase (Decrease)
Three Months Ended March 31,	2015			2014			Amount			%
	(in millions)
Net interest income	$	45		$	46		$	(1	)	(2.2	)%
Servicing related income:
Servicing fee income	15			18			(3		)	(16.7	)
Changes in fair value of Mortgage Servicing Rights ("MSRs") due to changes in valuation model inputs or assumptions	(11		)	(12		)	1			8.3
Customer payments	(8		)	(10		)	2			20.0
Trading – Derivative instruments used to offset changes in fair value of MSRs	24			15			9			60.0
Total servicing related income	20			11			9			81.8
Originations and sales related income (loss):
Losses on sales of residential mortgages	(6		)	—			(6		)	*
Recovery for repurchase obligations	4			34			(30		)	(88.2	)
Total originations and sales related income (loss)	(2		)	34			(36		)	*
Other mortgage income	1			3			(2		)	(66.7	)
Total residential mortgage banking revenue included in other revenues	19			48			(29		)	(60.4	)
Total residential mortgage banking related revenue	$	64		$	94		$	(30	)	(31.9	)%

* Not meaningful.

Net interest income was relatively flat during the three months ended March 31, 2015 as higher net interest income driven by growth in residential mortgage average outstanding balances was offset by lower net interest income from a declining home equity mortgage portfolio and lower yields on newly originated loans. Lower yields on newly originated loans reflects the lower risk profile of our Premier customers and market conditions. Consistent with our strategy, additions to our residential mortgage portfolio are primarily mortgages to our Premier and Advance customers, while sales of loans consist of newly originated conforming loans sold to PHH Mortgage as discussed further below.

Total servicing related income increased in the three months ended March 31, 2015 due primarily to improved net hedged MSRs results, partially offset by lower servicing fees due to a decline in our average serviced loan portfolio. As a result of our strategic relationship with PHH Mortgage, we no longer add new volume to our serviced portfolio as all agency eligible loans are sold to PHH Mortgage on a servicing released basis. Changes in net hedged MSRs results are driven by changes in the MSRs valuation due to updated market based assumptions such as interest rates, expected prepayments, primary-secondary spreads and cost of servicing which differ from period to period along with changes in the value of the underlying instruments used to hedge changes in the fair value of the MSRs. Consequently, primarily as a result of the elimination of new volume and declining mortgage rates,

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our MSRs fair value decreased during the three months ended March 31, 2015, which was more than offset by gains on instruments used to hedge changes in the fair value of the MSRs.

Originations and sales related income (loss) declined in the three months ended March 31, 2015 largely due to a lower recovery for repurchase obligations associated with loans previously sold and $6 million of losses associated with the execution of certain Community Reinvestment Act activities. During the three months ended March 31, 2015, we recorded a recovery for repurchase obligations of $4 million compared with a recovery of $34 million in the year ago period. During the first quarter of 2014, we entered into a settlement with the Federal Home Loan Mortgage Corporation ("FHLMC") for $25 million which settled our liability for substantially all loans sold to the FHLMC from January 1, 2000 through 2013. The settlement and a re-assessment of the residual exposure resulted in a release of reserves. We continue to maintain repurchase reserves for exposure associated with residual risks not covered by the settlement agreement.

Gain (loss) on instruments designated at fair value and related derivatives  We have elected to apply fair value option accounting to certain commercial loans held for sale, certain own fixed-rate debt issuances and all of our hybrid instruments issued, inclusive of structured notes and structured deposits. We also use derivatives to economically hedge the interest rate risk associated with certain financial instruments for which fair value option accounting has been elected. Gain (loss) on instruments designated at fair value and related derivatives increased in the three months ended March 31, 2015 attributable primarily to the widening of our own credit spreads associated with our own debt. See Note 10, "Fair Value Option," in the accompanying consolidated financial statements for additional information including a breakout of these amounts by individual component.

Valuation of loans held for sale  The valuation loss on loans held for sale during the three months ended March 31, 2015 reflects a valuation write-down on a commercial loan held for sale. Loans held for sale are recorded at the lower of their aggregate cost or fair value, with adjustments to fair value being recorded as a valuation allowance. Valuations on residential mortgage loans held for sale that we originate are recorded as a component of residential mortgage banking revenue in the consolidated statement of income.

Other income  Other income, excluding the valuation of loans held for sale as discussed above, increased in the three months ended March 31, 2015 due primarily to higher income associated with credit default swap protection which largely reflects exposures to a single counterparty.

Operating Expenses  Compliance costs, which remained a significant component of our cost base, totaled $66 million in the three months ended March 31, 2015, compared with $74 million in the prior year period. While we continue to focus attention on cost mitigation efforts in order to continue realization of optimal cost efficiencies, compliance related costs remain elevated due to the remediation required by regulatory consent agreements and the implementation of global standards.

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The following table summarizes the components of operating expenses:

							Increase (Decrease)
Three Months Ended March 31,	2015			2014			Amount			%
	(dollars are in millions)
Salary and employee benefits	$	246		$	215		$	31		14.4	%
Occupancy expense, net	56			57			(1		)	(1.8	)
Support services from HSBC affiliates:
Fees paid to HSBC Markets (USA) Inc. ("HMUS")	64			57			7			12.3
Fees paid to HSBC Technology & Services (USA) ("HTSU")	240			253			(13		)	(5.1	)
Fees paid to other HSBC affiliates	48			44			4			9.1
Total support services from HSBC affiliates	352			354			(2		)	(.6	)
Other expenses:
Equipment and software	12			14			(2		)	(14.3	)
Marketing	16			9			7			77.8
Outside services	21			13			8			61.5
Professional fees	21			22			(1		)	(4.5	)
Federal Deposit Insurance Corporation ("FDIC") assessment fee	31			31			—			—
Miscellaneous	22			35			(13		)	(37.1	)
Total other expenses	123			124			(1		)	(.8	)
Total operating expenses	$	777		$	750		$	27		3.6	%
Personnel - average number	6,059			6,183
Efficiency ratio	72.6		%	73.6		%

Salaries and employee benefits  Salaries and employee benefits expense increased during the three months ended March 31, 2015 despite a reduction in the average number of personnel. The reduction in average personnel reflected continued cost management efforts including a reduction in Retail Banking and Wealth Management personnel, due in part to branch optimization, which was partially offset by the addition of higher cost personnel associated with growth initiatives in certain businesses, strengthening controls and the implementation of global standards which resulted in an overall increase in expense.

Occupancy expense, net  Occupancy expense was relatively flat in the three months ended March 31, 2015.

Support services from HSBC affiliates  Support services from HSBC affiliates was relatively flat in the three months ended March 31, 2015 as lower expense due to changing the billing process for certain third-party loan servicing costs from support service fees paid to HTSU in 2014 to a direct expense in 2015 and lower compliance costs were offset by increased costs associated with our investment in process enhancements and infrastructure to improve and modernize our legacy business systems, increased staffing associated with capital planning and reporting activities and higher fees paid to HMUS. Compliance costs reflected in support services from affiliates (primarily from HTSU) totaled $63 million during the three months ended March 31, 2015, compared with $71 million in first quarter of 2014. A summary of the activities charged to us from various HSBC affiliates is included in Note 13, "Related Party Transactions," in the accompanying consolidated financial statements.

Other expenses  Other expenses remained relatively flat in the three months ended March 31, 2015 as higher outside services expense due to changing the billing process for certain third-party loan servicing costs as discussed above and higher marketing expenses driven largely by promotional campaigns associated with our Premier and Advance customer propositions were largely offset by lower loss provisions associated with off-balance sheet credit exposures and higher levels of expense capitalization relating to internally developed software.

Efficiency ratio  Our efficiency ratio was 72.6 percent during the three months ended March 31, 2015 compared with 73.6 percent during the year-ago period. Our efficiency ratio was impacted in each period by the change in the fair value of our own debt attributable to credit spread for which we have elected fair value option accounting. Excluding the impact of this item, our efficiency ratio for the three months ended March 31, 2015 increased to 77.7 percent compared with 75.0 percent in the prior year period due to higher operating expenses and lower other revenues, driven primarily by lower trading revenue, partially offset by higher net interest income.

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Income taxes The following table provides an analysis of the difference between effective rates based on the total income tax provision attributable to pretax income and the statutory U.S. Federal income tax rate:

							Increase (Decrease)
Three Months Ended March 31,	2015			2014			Amount			%
	(dollars are in millions)
Income before income tax expense	$	240		$	253		$	(13	)	(5.1	)%
Income tax expense	76			149			(73		)	(49.0	)
Effective tax rate	31.7		%	58.9		%

The effective tax rate for the three months ended March 31, 2015 reflects changes in valuation allowance reserves in relation to certain state net operating loss carryforwards and the net benefit from our low income housing tax credit investments. The effective tax rate for the three months ended March 31, 2014, was primarily impacted by the effects of re-valuing our deferred tax assets for New York State Tax Reform that was enacted on March 31, 2014 which resulted in a decrease to our net deferred tax asset of approximately $75 million, partially offset by changes in estimates in the amount of state income taxes deductible on the federal income tax return and the net benefit from low income housing tax credit investments. During the three months ended March 31, 2015 and 2014, we recognized $6 million and $7 million, respectively, of net benefits from low income housing tax credit investments in income tax expense.

On April 13, 2015, New York Governor Cuomo signed legislation related to the 2015-2016 budget containing amendments to reform New York City’s corporate tax rules. These reforms will have the effect of aligning New York City’s corporate tax regime with New York State following the changes previously enacted to the latter in 2014. The legislation enacted on April 13, 2015 is retroactively effective as of January 1, 2015, which is the same general effective date for the New York State corporate tax reform. We expect this change to have a significant impact on our deferred taxes which should result in a decrease to our net deferred tax asset of approximately $53 million in the second quarter of 2015.

We expect financial performance for HSBC North America and its subsidiary entities will continue to improve and therefore anticipate that reliance may be placed solely on projected future taxable income from continuing operations in management's evaluation of the recognition of the deferred tax assets in the near future as the sustainability of the improving financial performance continues to be demonstrated. The reliance on future taxable income from continuing operations within our evaluation of the recognition of deferred tax assets may result in the reversal of valuation allowances against certain state deferred tax assets. At March 31, 2015, we had recorded approximately $7 million of valuation allowances against these certain state deferred tax assets. These state deferred tax assets represent unitary filing states with partial valuation allowances against net operating loss carryforwards that could be utilized against future taxable income from continuing operations.

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Segment Results – Group Reporting Basis

We have four distinct business segments that are utilized for management reporting and analysis purposes which are aligned with HSBC's global businesses and business strategy: Retail Banking and Wealth Management ("RBWM"), Commercial Banking ("CMB"), Global Banking and Markets ("GB&M") and Private Banking ("PB"). The segments, which are generally based upon customer groupings and global businesses, are described under Item 1, "Business," in our 2014 Form 10-K. There have been no changes in the basis of our segmentation or measurement of segment profit as compared with the presentation in our 2014 Form 10-K.

We report financial information to our parent, HSBC, in accordance with HSBC Group accounting and reporting policies, which apply International Financial Reporting Standards ("IFRS") and, as a result, our segment results are prepared and presented using financial information prepared on the basis of HSBC Group's accounting and reporting policies ("Group Reporting Basis") (a non-U.S. GAAP financial measure) as operating results are monitored and reviewed, trends are evaluated and decisions about allocating resources, such as employees, are primarily made on this basis. However, we continue to monitor capital adequacy, establish dividend policy and report to regulatory agencies on a U.S. GAAP basis. The significant differences between U.S. GAAP and Group Reporting Basis as they impact our results are summarized in Note 14, "Business Segments," in our 2014 Form 10-K.

We are currently in the process of re-evaluating the financial information used to manage our businesses, including the scope and content of the U.S. GAAP financial data being reported to our Management and our Board. To the extent we make changes to this reporting in 2015, we will evaluate any impact such changes may have on our segment reporting.

Retail Banking and Wealth Management   Our RBWM segment provides a full range of banking and wealth products and services through our branches and direct channels to individuals. These services include asset-driven services such as credit and lending, liability-driven services such as deposit taking and account services and fee-driven services such as advisory and wealth management. During the first quarter of 2015, we continued to direct resources towards the development and delivery of premium service. Particular focus has been placed on HSBC Premier, HSBC's global banking service that was re-launched in 2014 and offers customers a seamless international service, and HSBC Advance, a proposition directed towards the emerging affluent client in the initial stages of wealth accumulation.

Consistent with our strategy, the growth of our residential mortgage portfolio is driven primarily by lending to our Premier and Advance customers. Following the conversion of our mortgage processing and servicing operations to PHH Mortgage in 2013, we sell our agency eligible originations directly to PHH Mortgage on a servicing released basis, resulting in no new mortgage servicing rights being recognized.

The following table summarizes the Group Reporting Basis results for our RBWM segment:

						Increase (Decrease)
Three Months Ended March 31,	2015			2014		Amount			%
	(in millions)
Net interest income	$	197		$	198	$	(1	)	(.5	)%
Other operating income	87			113		(26		)	(23.0	)
Total operating income	284			311		(27		)	(8.7	)
Loan impairment charges	22			2		20			*
Net operating income	262			309		(47		)	(15.2	)
Operating expenses	281			279		2			.7
Profit (loss) before tax	$	(19	)	$	30	$	(49	)	*

* Not meaningful.

Our RBWM segment reported a loss before tax during the three months ended March 31, 2015 compared with a profit before tax during the prior year period driven by lower other operating income and higher loan impairment charges.

Net interest income was relatively flat during the three months ended March 31, 2015 as higher net interest income driven by growth in residential mortgage average outstanding balances was offset by lower net interest income from a declining home equity mortgage portfolio and lower yields on newly originated loans. Lower yields on newly originated loans reflects the lower risk profile of our Premier customers and market conditions.

Other operating income decreased in the three months ended March 31, 2015 driven by a lower recovery for mortgage loan repurchase obligations associated with previously sold loans, as the prior year period reflects a release of reserves due primarily

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to a settlement with FHLMC which settled our liability for substantially all loans sold to FHLMC, as well as losses associated with the execution of certain Community Reinvestment Act activities, partially offset by improved net hedged MSRs results.

Loan impairment charges increased during the three months ended March 31, 2015 as the positive impacts from lower severity estimates due to improvements in home prices, continued improvements in economic and credit conditions including lower dollars of delinquency on accounts less than 180 days contractually delinquent, and the continued origination of higher quality Premier mortgages, were more pronounced in the prior year period.

Operating expenses were relatively flat in the three months ended March 31, 2015.

Commercial Banking  CMB's goal is to be the banking partner of choice for international businesses building on our rich heritage, international capabilities and customer relationships to enable global connectivity. CMB strives to execute this vision and strategy by focusing on key markets with high concentrations of international connectivity. Our CMB segment serves the markets through three client groups, notably Large Corporate, Middle Market and Business Banking. We also have a specialized Commercial Real Estate group which focuses on selective business opportunities in markets where we have strong portfolio expertise. This structure allows us to align our resources in order to efficiently deliver suitable products and services based on our clients' needs and abilities. Payments and Cash Management, Global Trade and Receivables Finance and Credit and Lending are key product groups which enable CMB to deliver the global connections required by customers. Whether it is through commercial centers, the retail branch network, or via HSBCnet, CMB provides customers with products and services needed to grow their businesses internationally and delivers those products and services through its relationship managers who operate within a robust, customer focused compliance and risk culture and collaborate across HSBC to capture a larger percentage of a relationship. An increase in the number of relationship managers and product partners is enabling us to gain a larger presence in key growth markets, including the West Coast, Southeast and Midwest.

New loan originations have resulted in a 31 percent increase in quarter-to-date average loans outstanding to Large Corporate customers and a 9 percent increase in quarter-to-date average loans outstanding to Middle Market customers since the first quarter of 2014. Total quarter-to-date average loans outstanding increased 19 percent across all CMB client groups as compared with the first quarter of 2014.

The following table summarizes the Group Reporting Basis results for our CMB segment:

					Increase (Decrease)
Three Months Ended March 31,	2015		2014		Amount		%
	(in millions)
Net interest income	$	201	$	187	$	14	7.5	%
Other operating income	77		68		9		13.2
Total operating income	278		255		23		9.0
Loan impairment charges	10		7		3		42.9
Net operating income	268		248		20		8.1
Operating expenses	169		158		11		7.0
Profit before tax	$	99	$	90	$	9	10.0	%

Our CMB segment reported a higher profit before tax during the three months ended March 31, 2015 driven by higher net interest income and higher other operating income, partially offset by higher loan impairment charges and higher operating expenses.

Net interest income increased in the three months ended March 31, 2015 due to the favorable impact of higher loan balances, primarily in key growth markets, partially offset by lower yields on newly originated loans and refinanced loans.

Other operating income was higher during the three months ended March 31, 2015 driven primarily by higher fees generated from an increase in credit commitments, gains on sale in Commercial Real estate, higher Payments and Cash Management revenues and higher GB&M collaboration income due to an increase in corporate derivatives and capital financing.

Loan impairment charges increased during the three months ended March 31, 2015 driven primarily by downgrades, reflecting weaknesses in the financial circumstances of certain customer relationships, higher provisions associated with oil and gas industry loan exposures and loan growth.

Operating expenses increased during the three months ended March 31, 2015 driven by higher salaries expense related to growth initiatives, higher litigation costs and higher technology and corporate function support service costs.

Global Banking and Markets  Our GB&M business segment supports HSBC’s emerging markets-led and financing-focused global strategy by leveraging the HSBC Group's advantages and scale, strength in developed and emerging markets and product expertise in order to focus on delivering international products to U.S. clients and local products to international clients, with New York as the hub for the Americas business, including Canada and Latin America. GB&M provides tailored financial solutions to major

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government, corporate and institutional clients as well as private investors worldwide. GB&M clients are served by sector-focused teams that bring together relationship managers and product specialists to develop financial solutions that meet individual client needs. With a focus on providing client connectivity between the emerging markets and developed markets, GB&M aims to develop a comprehensive understanding of each client’s financial requirements with a long-term relationship management approach. In addition to GB&M clients, GB&M works with RBWM, CMB and PB to meet their domestic and international banking needs.

Within client-focused business lines, GB&M offers a full range of capabilities, including:

• Banking and financing advice and solutions for corporate and institutional clients, including loans, working capital, trade services, payments and cash management, leveraged and acquisition finance, as well as capital raising in the debt and equity markets; and

• A markets business with 24-hour coverage and knowledge of world-wide local markets which provides services in credit and rates, foreign exchange, precious metals trading, equities and securities services.

Also included in our GB&M segment is Balance Sheet Management, which is responsible for managing liquidity and funding under the supervision of our Asset and Liability Management Committee. Balance Sheet Management also manages our structural interest rate position within a limit structure.

We continue to target U.S. companies with international banking requirements and foreign companies with banking needs in the Americas. Consistent with our global strategy, we are also focused on identifying opportunities to cross-sell our products to CMB and RBWM customers. Furthermore, we have seen higher corporate loan balances compared with the prior year. During the first quarter of 2015 U.S. financial market conditions reflected continued low interest rates and generally less volatile credit spreads and foreign exchange prices. In Metals, gold prices on average were lower than the prior year and less volatile.

The following table summarizes the Group Reporting Basis results for the GB&M segment:

					Increase (Decrease)
Three Months Ended March 31,	2015		2014		Amount			%
	(in millions)
Net interest income	$	118	$	97	$	21		21.6	%
Other operating income	266		294		(28		)	(9.5	)
Total operating income(1)	384		391		(7		)	(1.8	)
Loan impairment charges	8		15		(7		)	(46.7	)
Net operating income	376		376		—			—
Operating expenses	259		239		20			8.4
Profit before tax	$	117	$	137	$	(20	)	(14.6	)%

⁽¹⁾  The following table summarizes the impact of key activities on the total operating income of the GB&M segment:

							Increase (Decrease)
Three Months Ended March 31,	2015			2014			Amount			%
	(in millions)
Credit(2)	$	7		$	33		$	(26	)	(78.8	)%
Rates	40			58			(18		)	(31.0	)
Foreign Exchange and Metals	67			77			(10		)	(13.0	)
Equities	17			4			13			*
Total Global Markets	131			172			(41		)	(23.8	)
Capital Financing	89			62			27			43.5
Payments and Cash Management	90			85			5			5.9
Securities Services	3			3			—			—
Global Trade and Receivables Finance	13			11			2			18.2
Balance Sheet Management(3)	64			64			—			—
Debit Valuation Adjustment	8			—			8			*
Other(4)	(14		)	(6		)	(8		)	*
Total operating income	$	384		$	391		$	(7	)	(1.8	)%

* Not meaningful.

⁽²⁾  Credit includes gains of $1 million and $32 million in the three months ended March 31, 2015 and 2014, respectively, of operating income related to structured credit products and mortgage loans held for sale which we no longer offer.

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⁽³⁾  Includes gains on the sale of securities of $23 million in both the three months ended March 31, 2015 and 2014.

⁽⁴⁾  Other includes corporate funding charges and earnings on capital.

Our GB&M segment reported a lower profit before tax during the three months ended March 31, 2015 driven by lower other operating income and higher operating expenses partially offset by higher net interest income and lower loan impairment charges.

Credit revenue decreased during the three months ended March 31, 2015 from the performance of legacy credit products. Changes in the fair value of legacy structured credit products resulted in gains of $1 million during the three months ended March 31, 2015, compared with gains of $29 million during the three months ended March 31, 2014. Included in the changes in fair value from structured credit products were increases in fair value of $4 million during the three months ended March 31, 2015 related to exposures to monoline insurance companies, compared with increases of $16 million during the three months ended March 31, 2014. Revenue from Rates decreased during the three months ended March 31, 2015 due to lower new deal volumes, primarily in emerging markets related activity which were impacted by less stable economic conditions in Latin America. Foreign Exchange and Metals revenue decreased during the three months ended March 31, 2015 due to lower custody fee income from Metals which reflects the sale of our GB&M London Branch precious metals custody and clearing business to an HSBC affiliate during the fourth quarter of 2014. The increase in Equities during the three months ended March 31, 2015 was driven by the impact of fair value adjustments on certain equity linked structured note liabilities, which were related to movements in our own credit spreads.

Capital Financing revenue increased during the three months ended March 31, 2015 due to higher revenue related to the hedging of a single loan exposure, higher financing fees from increased deal activity and higher net interest income driven by higher loan balances.

Balance Sheet Management revenue was flat during the three months ended March 31, 2015 as increased interest income was offset by lower revenue related to the performance of economic hedge positions used to manage interest rate risk.

Debit valuation adjustments on derivative liabilities reflects a movement of our spreads.

Loan impairment charges decreased in the three months ended March 31, 2015 as the prior year period reflected higher expected loss on a single name exposure.

Operating expenses increased during the three months ended March 31, 2015 driven by higher staff costs related to growth initiatives and higher technology and corporate function support service costs.

Private Banking  PB serves high net worth and ultra-high net worth individuals and their families with a focus on multi-generational families, business owners and entrepreneurs who require sophisticated solutions to help meet their most complex needs domestically and abroad. Accessing the most suitable products from the marketplace, PB works with its clients to offer tailored, coordinated and innovative ways to manage and preserve wealth while optimizing returns. PB offers a wide range of products and services, including banking, liquidity management, investment services, custody, tailored lending, trust and fiduciary services, insurance, family wealth and philanthropy advisory services. PB also works to ensure that its clients have access to other products and services available throughout the HSBC Group, such as credit cards and investment banking, to deliver total solutions for their financial and wealth needs. PB strategy is concentrated on three main areas: growth, streamlining and global standards.

Client deposit levels decreased $930 million or 8 percent compared with March 31, 2014. Total loans increased $432 million or 8 percent compared with March 31, 2014 from commercial and industrial, and residential mortgage portfolios. Overall period end client assets were $430 million lower than March 31, 2014 primarily due to lower institutional custody customer balances and lower deposits balances, partially offset by higher discretionary and fiduciary portfolios.

The following table provides additional information regarding client assets during the first quarter of 2015 and 2014:

Three Months Ended March 31,	2015		2014
	(in millions)
Client assets at beginning of the period	$	44,102	$	44,661
Net new money	735		129
Value change	195		675
Client assets at end of period	$	45,032	$	45,465

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The following table summarizes the Group Reporting Basis results for the PB segment:

						Increase (Decrease)
Three Months Ended March 31,	2015		2014			Amount			%
	(in millions)
Net interest income	$	49	$	49		$	—		—	%
Other operating income	24		25			(1		)	(4.0	)
Total operating income	73		74			(1		)	(1.4	)
Loan impairment recoveries	—		(5		)	5			100.0
Net operating income	73		79			(6		)	(7.6	)
Operating expenses	58		55			3			5.5
Profit before tax	$	15	$	24		$	(9	)	(37.5	)%

Our PB segment reported lower profit before tax during the first quarter of 2015 driven primarily by lower loan impairment recoveries and higher operating expenses.

Net interest income was flat during the first quarter of 2015.

Other operating income was relatively flat during the first quarter of 2015.

Loan impairment recoveries decreased during the first quarter of 2015 as the prior year period reflects recoveries related to the payoff of a troubled debt restructuring loan and releases of reserves due to loan pay downs.

Operating expenses increased during the first quarter of 2015 driven by higher risk and technology support service costs.

Other  The other segment primarily includes changes in the fair value of certain debt issued for which fair value option accounting was elected and related derivatives, income and expense associated with certain affiliate transactions, adjustments to the fair value on HSBC shares held for stock plans, interest expense associated with certain tax exposures and income associated with other tax related investments.

The following table summarizes the Group Reporting Basis results for the Other segment:

							Increase (Decrease)
Three Months Ended March 31,	2015			2014			Amount		%
	(in millions)
Net interest expense	$	(6	)	$	(13	)	$	7	53.8	%
Gain on own fair value option debt attributable to credit spread	70			19			51		*
Other operating income	12			6			6		100.0
Total operating income	76			12			64		*
Loan impairment charges	—			—			—		—
Net operating income	76			12			64		*
Operating expenses	27			25			2		8.0
Profit (loss) before tax	$	49		$	(13	)	$	62	*

* Not meaningful.

Profit (loss) before tax improved during the first quarter of 2015 due primarily to higher gains from changes in the fair value of our own debt attributable to credit spread for which fair value option accounting was elected, lower interest expense reflecting the impact of the conclusion of certain state and local tax audits in the second quarter of 2014 which resulted in the settlement of significant uncertain tax positions covering a number of years which eliminated the associated interest expense on these liabilities as well as higher other operating income driven by higher revenues associated with real estate mortgage investment conduits.

Reconciliation of Segment Results  As previously discussed, segment results are reported on a Group Reporting Basis. For segment reporting purposes, inter-segment transactions have not been eliminated, and we generally account for transactions between segments as if they were with third parties. Also see Note 14, "Business Segments," in the accompanying consolidated financial statements for a reconciliation of our Group Reporting Basis segment results to U.S. GAAP consolidated totals.

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Credit Quality

In the normal course of business, we enter into a variety of transactions that involve both on and off-balance sheet credit risk. Principal among these activities is lending to various commercial, institutional, governmental and individual customers. We participate in lending activity throughout the U.S. and, on a limited basis, internationally.

Allowance for Credit Losses  Commercial loans are monitored on a continuous basis with a formal assessment completed, at a minimum, annually. As part of this process, a credit grade and loss given default are assigned and an allowance is established for these loans based on a probability of default estimate associated with each credit grade under the allowance for credit losses methodology. Credit Review, an independent function, provides an ongoing assessment of lending activities that includes independently assessing credit grades and loss given default estimates. When it is deemed probable based upon known facts and circumstances that full interest and principal on an individual loan will not be collected in accordance with its contractual terms, the loan is considered impaired. An impairment reserve is then established based on the present value of expected future cash flows, discounted at the loan's original effective interest rate, or as a practical expedient, the loan's observable market price or the fair value of the collateral if the loan is collateral dependent. Updated appraisals for collateral dependent loans are generally obtained only when such loans are considered troubled and the frequency of such updates are generally based on management judgment under the specific circumstances on a case-by-case basis. In addition, loss reserves on commercial loans are maintained to reflect our judgment of portfolio risk factors which may not be fully reflected in the reserve calculations.

Our credit grades for commercial loans align with U.S. regulatory risk ratings and are mapped to our probability of default master scale. These probability of default estimates are validated on an annual basis using back-testing of actual default rates and benchmarking of the internal ratings with external rating agency data like Standard and Poor's ("S&P") ratings and default rates. Substantially all appraisals in connection with commercial real estate loans are ordered by the independent real estate appraisal review unit at HSBC. The appraisal must be reviewed and accepted by this unit. For loans greater than $250,000, an appraisal is generally ordered when the loan is classified as Substandard as defined by the Office of the Comptroller of the Currency (the "OCC"). On average, it takes approximately four weeks from the time the appraisal is ordered until it is completed and the values accepted by HSBC's independent appraisal review unit. Subsequent provisions or charge-offs are completed shortly thereafter, generally within the quarter in which the appraisal is received.

In situations where an external appraisal is not used to determine the fair value of the underlying collateral of impaired loans, current information such as rent rolls and operating statements of the subject property are reviewed and presented in a standardized format. Operating results such as net operating income and cash flows before and after debt service are established and reported with relevant ratios. Third-party market data is gathered and reviewed for relevance to the subject collateral. Data is also collected from similar properties within the portfolio. Actual sales levels of properties, operating income and expense figures and rental data on a square foot basis are derived from existing loans and, when appropriate, used as comparables for the subject property. Property specific data, augmented by market data research, is used to project a stabilized year of income and expense to create a 10-year cash flow model to be discounted at appropriate rates to present value. These valuations are then used to determine if any impairment on the underlying loans exists and an appropriate allowance is recorded when warranted.

For loans identified as troubled debt restructurings ("TDR Loans"), an allowance for credit losses is maintained based on the present value of expected future cash flows discounted at the loans' original effective interest rate or in the case of certain loans which are solely dependent on the collateral for repayment, the estimated fair value of the collateral less costs to sell. The circumstances in which we perform a loan modification involving a TDR Loan at a then current market interest rate for a borrower with similar credit risk would include other changes to the terms of the original loan made as part of the restructure (e.g. principal reductions, collateral changes, etc.) in order for the loan to be classified as a TDR Loan.

For pools of homogeneous consumer receivables and certain small business loans which do not qualify as TDR Loans, probable losses are estimated using a roll rate migration analysis that estimates the likelihood that a loan will progress through the various stages of delinquency, or buckets, and ultimately charge-off based upon recent historical performance experience of other loans in our portfolio. This migration analysis incorporates estimates of the period of time between a loss occurring and the confirming event of its charge-off. This analysis considers delinquency status, loss experience and severity and takes into account whether loans are in bankruptcy or have been subject to account management actions, such as the re-age of accounts or modification arrangements. The allowance for credit losses on consumer receivables also takes into consideration the loss severity expected based on the underlying collateral, if any, for the loan in the event of default based on historical and recent trends which are updated monthly based on a rolling average of several months' data using the most recently available information and is typically in the range of 20-40 percent for residential mortgages and 75-100 percent for home equity mortgages. At March 31, 2015, approximately 1 percent of our second lien home equity mortgages where the first lien residential mortgage is held or serviced by us and has a delinquency status of 90 days or more delinquent, were less than 90 days delinquent and were not considered to be a TDR Loan or already recorded at fair value less costs to sell.

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The roll rate methodology is a migration analysis based on contractual delinquency and rolling average historical loss experience which captures the increased likelihood of an account migrating to charge-off as the past due status of such account increases. The roll rate models used were developed by tracking the movement of delinquencies by age of delinquency by "bucket" over a specified time period. Each bucket represents a period of delinquency in 30-day increments. The roll from the last delinquency bucket results in charge-off. Contractual delinquency is a method for determining aging of past due accounts based on the status of payments under the loan. Average roll rates are developed to avoid temporary aberrations caused by seasonal trends in delinquency experienced by some product types. We have determined that a 12-month average roll rate balances the desire to avoid temporary aberrations, while at the same time analyzing recent historical data. The roll rate calculations are performed monthly and are done consistently from period to period. We regularly monitor our portfolio to evaluate the period of time utilized in our roll rate migration analysis and perform a formal review on an annual basis. In addition, loss reserves on consumer receivables are maintained to reflect our judgment of portfolio risk factors which may not be fully reflected in the statistical roll rate calculation.

Our allowance for credit losses methodology and our accounting policies related to the allowance for credit losses are presented in further detail under the caption "Critical Accounting Policies and Estimates" and in Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2014 Form 10-K. Our approach toward credit risk management is summarized under the caption "Risk Management" in our 2014 Form 10-K. There have been no significant revisions to our policies or methodologies during the first quarter of 2015.

The following table sets forth the allowance for credit losses for the periods indicated:

	March 31, 2015			December 31, 2014
	(dollars are in millions)
Allowance for credit losses	$	703		$	680
Ratio of Allowance for credit losses to:
Loans:(1)
Commercial	.9		%	.8		%
Consumer:
Residential mortgages	0.6			0.6
Home equity mortgages	1.7			1.8
Credit card receivables	5.1			5.4
Other consumer loans	2.4			2.0
Total consumer loans	0.9			1.0
Total	.9		%	.9		%
Net charge-offs:(2)
Commercial(3)	2,225		%	1,538		%
Consumer	174			229
Total	581		%	596		%
Nonperforming loans:(1)(4)
Commercial	349		%	351		%
Consumer	19			20
Total	67		%	63		%

⁽¹⁾  Ratios exclude loans held for sale held for sale as these loans are carried at the lower of amortized cost or fair value.

⁽²⁾  Ratio at March 31, 2015 reflects year-to-date net charge-offs, annualized. Ratio at December 31, 2014 reflects full year net charge-offs.

⁽³⁾  Our commercial net charge-off coverage ratio for the quarter ended March 31, 2015 and year ended December 31, 2014 was 267 months and 185 months, respectively. The net charge-off coverage ratio represents the allowance for credit losses at period end divided by average monthly net charge-offs during the period.

⁽⁴⁾  Represents our commercial and consumer allowance for credit losses, as appropriate, divided by the corresponding outstanding balance of total nonperforming loans held for investment. Nonperforming loans include accruing loans contractually past due 90 days or more.

See Note 5, "Allowance for Credit Losses," in the accompanying consolidated financial statements for a rollforward of credit losses by general loan categories for the three months ended March 31, 2015 and 2014.

The allowance for credit losses at March 31, 2015increased$23 million or 3 percent as compared with December 31, 2014 due to higher loss estimates in our commercial loan portfolio, partially offset by lower loss estimates in our consumer loan portfolio.

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Our commercial allowance for credit losses increased$42 million or 9 percent as compared with December 31, 2014 primarily due to downgrades, reflecting weaknesses in the financial circumstances of certain customer relationships, and higher loss estimates associated with oil and gas industry loan exposures as well as loan growth.

Our consumer allowance for credit losses decreased$19 million or 10 percent as compared with December 31, 2014 reflecting lower loss estimates in our residential mortgage loan portfolio driven by lower severity estimates, continued improvements in economic and credit conditions including lower delinquency levels and the continued origination of higher quality Premier mortgages which are an increasingly larger portion of the portfolio. Also contributing to the decrease were lower loss estimates associated with the remediation of certain mortgage servicing activities and a lower allowance for credit losses in our credit card portfolio due to improved delinquency roll rates and lower receivable levels.

Our residential mortgage loan allowance for credit losses in all periods reflects consideration of certain risk factors relating to trends such as recent portfolio performance as compared with average roll rates and economic uncertainty, including housing market trends as well as second lien exposure.

The allowance for credit losses as a percentage of total loans at March 31, 2015 was flat compared with December 31, 2014 as increases in the commercial loan percentage were offset by decreases in the consumer loan percentage for the reasons discussed above.

The allowance for credit losses as a percentage of net charge-offs decreased compared with December 31, 2014 due to higher dollars of net charge-offs in our consumer loan portfolio, partially offset by lower dollars of net charge-offs in our commercial loan portfolio and an increase in our overall allowance for credit losses for the reasons discussed above.

The following table presents the allowance for credit losses by major loan categories, excluding loans held for sale:

	Amount		% of Loans to Total Loans		Amount		% of Loans to Total Loans
	March 31, 2015				December 31, 2014
	(dollars are in millions)
Commercial(1)	$	534	75.7	%	$	492	74.7	%
Consumer:
Residential mortgages	95		20.9		107		21.4
Home equity mortgages	29		2.1		32		2.3
Credit card receivables	35		.8		39		.9
Other consumer	10		.5		10		.7
Total consumer	169		24.3		188		25.3
Total	$	703	100.0	%	$	680	100.0	%

⁽¹⁾  See Note 5, "Allowance for Credit Losses," in the accompanying consolidated financial statements for components of the commercial allowance for credit losses.

While our allowance for credit loss is available to absorb losses in the entire portfolio, we specifically consider the credit quality and other risk factors for each of our products in establishing the allowance for credit loss.

Reserves for Off-Balance Sheet Credit Risk  We also maintain a separate reserve for credit risk associated with certain commercial off-balance sheet exposures, including letters of credit, unused commitments to extend credit and financial guarantees. The following table summarizes this reserve, which is included in other liabilities on the consolidated balance sheet. The related provision is recorded as a component of other expense within operating expenses.

	March 31, 2015		December 31, 2014
Off-balance sheet credit risk reserve	$	70	$	68

The slight increase in off-balance sheet reserves at March 31, 2015 as compared with December 31, 2014 largely reflects growth in customer activity. Off-balance sheet exposures are summarized under the caption "Off-Balance Sheet Arrangements, Credit Derivatives and Other Contractual Obligations" in this MD&A.

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Delinquency  The following table summarizes dollars of two-months-and-over contractual delinquency and two-months-and-over contractual delinquency as a percent of total loans and loans held for sale ("delinquency ratio"):

	March 31, 2015			December 31, 2014
	(dollars are in millions)
Delinquent loans:
Commercial	$	42		$	41
Consumer:
Residential mortgages(1)(2)	957			1,013
Home equity mortgages(1)(2)	60			62
Credit card receivables	14			14
Other consumer	13			14
Total consumer	1,044			1,103
Total	$	1,086		$	1,144
Delinquency ratio:
Commercial	.07		%	.07		%
Consumer:
Residential mortgages(1)(2)	5.62			6.07
Home equity mortgages(1)(2)	3.50			3.48
Credit card receivables	2.06			1.94
Other consumer	2.53			2.52
Total consumer	5.24			5.59
Total	1.33		%	1.46		%

⁽¹⁾  At March 31, 2015, and December 31, 2014, consumer mortgage loan delinquency includes $908 million and $936 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less costs to sell, including $4 million and $5 million, respectively, relating to loans held for sale.

⁽²⁾The following table reflects dollars of contractual delinquency and delinquency ratios for interest-only loans and adjustable rate mortgage loans:

	March 31, 2015			December 31, 2014
	(dollars are in millions)
Dollars of delinquent loans:
Interest-only loans	$	66		$	63
ARM loans	272			280
Delinquency ratio:
Interest-only loans	1.85		%	1.78		%
ARM loans	2.31			2.43

Compared with December 31, 2014, our two-months-and-over contractual delinquency ratio decreased13 basis points driven by lower dollars of two-months-and-over contractual delinquency in our consumer loan portfolio and higher outstanding loan balances. Our consumer loan two-month-and-over contractual delinquency ratio at March 31, 2015decreased35 basis points from December 31, 2014, primarily due to lower levels of residential mortgage loan delinquency driven by continued improvements in economic and credit conditions as well as lower levels of delinquency associated with loans carried at the lower of amortized cost or fair value of the collateral less costs to sell. Residential mortgage loan delinquency levels however continue to be impacted by an elongated foreclosure process which has resulted in loans which would otherwise have been foreclosed and transferred to REO remaining in the loan account and, consequently, in delinquency. Compared with December 31, 2014, our commercial loan two-months-and-over contractual delinquency ratio remained flat as a slight increase in dollars of delinquency was offset by the impact from higher outstanding loan balances.

Residential mortgage delinquency is significantly higher than home equity mortgage delinquency in all periods largely due to the inventory of loans which are held at the lower of amortized cost or fair value of the collateral less cost to sell and are in the foreclosure process. Given the extended foreclosure time lines, particularly in those states where HUSI has a large footprint, the residential mortgage portfolio has a substantial inventory of loans which are greater than 180 days past due and have been written down to the fair value of the collateral less cost to sell. There is a substantially lower volume of home equity mortgage loans where

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we pursue foreclosure less frequently given the generally subordinate position of the lien. In addition, our legacy business originated through broker channels and loan transfers from HSBC Finance is of a lower credit quality and, therefore, contributes to an overall higher weighted average delinquency rate for our residential mortgages. Both of these factors are expected to continue to diminish in future periods as the foreclosure backlog resulting from extended foreclosure time lines is managed down and the portfolio mix continues to shift to higher quality loans as the legacy broker originated business and prior loan transfers run off.

Net Charge-offs of Loans  The following table summarizes net charge-off (recovery) dollars as well as the net charge-off (recovery) of loans for the quarter, annualized, as a percentage of average loans, excluding loans held for sale, ("net charge-off ratio"):

	March 31, 2015			December 31, 2014			March 31, 2014
	(dollars are in millions)
Net Charge-off Dollars:
Commercial:
Construction and other real estate	$	1		$	—		$	17
Business and corporate banking	4			1			2
Global banking	—			—			8
Other commercial	1			1			(3		)
Total commercial	6			2			24
Consumer:
Residential mortgages	12			5			14
Home equity mortgages	1			1			(1		)
Credit card receivables	7			6			10
Other consumer	4			1			1
Total consumer	24			13			24
Total	$	30		$	15		$	48
Net Charge-off Ratio:
Commercial:
Construction and other real estate	.04		%	—		%	.75		%
Business and corporate banking	.09			.02			.05
Global banking	—			—			.15
Other commercial	.11			.13			(.40		)
Total commercial	.04			.01			.20
Consumer:
Residential mortgages	.29			.12			.36
Home equity mortgages	.23			.22			(.20		)
Credit card receivables	4.06			3.45			5.87
Other consumer	3.50			.91			.81
Total consumer	.49			.27			.51
Total	.15		%	.08		%	.29		%

Our net charge-off ratio as a percentage of average loans increased 7 basis points for the quarter ended March 31, 2015 compared with the quarter ended December 31, 2014 due to higher levels of net charge-offs in both our consumer and commercial loan portfolios, partially offset by higher outstanding average loan balances, primarily in our commercial loan portfolio. The increase in consumer net charge-offs was driven by higher residential mortgage charge-offs as the positive impacts from continued improvement in economic and credit conditions including the impact of lower levels of delinquency on accounts less than 180 days delinquent and improvements in housing market conditions were more pronounced in the prior quarter. Also contributing to the increase was higher other consumer charge-offs due to the transfer of a small portfolio of student loans to held for sale. The increase in commercial net charge-offs was driven by higher charge-offs in business and corporate banking which largely reflects the charge-off of a single customer relationship.

Compared with the year-ago quarter, our net charge-off ratio as a percentage of average loans decreased 14 basis points due primarily to lower levels of charge-offs in our commercial loan portfolio as well as higher outstanding average loan balances. The decline in commercial net charge-offs was driven by lower charge-offs in construction and other real estate and in global banking due primarily to the sale or pay-off of certain exposures in the prior year period.

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Nonperforming Assets  Nonperforming assets consisted of the following:

	March 31, 2015		December 31, 2014
	(dollars are in millions)
Nonaccrual loans:
Commercial:
Construction and other real estate	$	74	$	65
Business and corporate banking	78		74
Commercial nonaccrual loans held for sale	36		43
Total commercial	188		182
Consumer:
Residential mortgages(1)(2)(3)	803		847
Home equity mortgages(1)(2)	67		68
Consumer nonaccrual loans held for sale	4		4
Total consumer loans	874		919
Total nonaccruing loans	1,062		1,101
Accruing loans contractually past due 90 days or more:
Commercial:
Business and corporate banking	1		1
Total commercial	1		1
Consumer:
Credit card receivables	10		10
Other consumer	9		10
Total consumer loans	19		20
Total accruing loans contractually past due 90 days or more	20		21
Total nonperforming loans	1,082		1,122
Other real estate owned(4)	32		31
Total nonperforming assets	$	1,114	$	1,153

⁽¹⁾  At March 31, 2015 and December 31, 2014, nonaccrual consumer mortgage loans include $760 million and $817 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

⁽²⁾  Nonaccrual consumer mortgage loans include all receivables which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent.

⁽³⁾  Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association ("GNMA"). Repayment of these loans are predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our customer loan portfolio.

⁽⁴⁾  Includes $1 million of commercial other real estate owned at both March 31, 2015 and December 31, 2014.

Nonaccrual loans at March 31, 2015 decreased as compared with December 31, 2014 due to lower levels of consumer nonaccrual loans, partially offset by slightly higher levels of commercial nonaccrual loans. Our consumer nonaccrual loans decreased driven by lower residential mortgage nonaccrual loans due to continued improvements in economic and credit conditions. Residential mortgage nonaccrual loan levels however continue to be impacted by an elongated foreclosure process as previously discussed. Our commercial nonaccrual loans increased slightly as higher nonaccrual levels in construction and other real estate and business and corporate banking were partially offset by a higher valuation allowance on the commercial nonaccrual loan held for sale. Accruing loans past due 90 days or more remained relatively flat compared with December 31, 2014.

Our policies and practices for problem loan management and placing loans on nonaccrual status are summarized in Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2014 Form 10-K.

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Impaired Commercial Loans  See Note 4, "Loans," in the accompanying consolidated financial statements for information regarding impaired loans, including TDR Loans as well as certain other commercial credit quality indicators.

Concentration of Credit Risk  A concentration of credit risk is defined as a significant credit exposure with an individual or group engaged in similar activities or affected similarly by economic conditions. We enter into a variety of transactions in the normal course of business that involve both on and off-balance sheet credit risk. Principal among these activities is lending to various commercial, institutional, governmental and individual customers. We participate in lending activity throughout the United States and internationally. In general, we manage the varying degrees of credit risk involved in on and off-balance sheet transactions through specific credit policies. These policies and procedures provide for a strict approval, monitoring and reporting process. It is our policy to require collateral when it is deemed appropriate. Varying degrees and types of collateral are secured depending upon management’s credit evaluation. As with any nonconforming and non-prime loan products, we utilize high underwriting standards and price these loans in a manner that is appropriate to compensate for higher risk. We do not offer teaser rate mortgage loans.

Our loan portfolio includes the following types of loans:

• Interest-only loans – A loan which allows a customer to pay the interest-only portion of the monthly payment for a period of time which results in lower payments during the initial loan period.

• Adjustable rate mortgage ("ARM") loans – A loan which allows us to adjust pricing on the loan in line with market movements.

The following table summarizes the balances of interest-only and ARM loans in our loan portfolios, including certain loans held for sale, at March 31, 2015 and December 31, 2014, respectively. Each category is not mutually exclusive and loans may appear in more than one category below.

	March 31, 2015		December 31, 2014
	(in millions)
Interest-only residential mortgage loans	$	3,561	$	3,531
ARM loans(1)	11,762		11,532

⁽¹⁾  During the remainder of 2015 and during 2016, approximately $128 million and $401 million, respectively, of the ARM loans will experience their first interest rate reset.

The following table summarizes the concentrations of first and second liens within the outstanding residential mortgage and home equity mortgage portfolios. Amounts in the table exclude residential mortgage loans held for sale of $24 million and $18 million at March 31, 2015 and December 31, 2014, respectively.

	March 31, 2015		December 31, 2014
	(in millions)
Closed end:
First lien	$	16,991	$	16,661
Second lien	106		111
Revolving(1)	1,610		1,673
Total	$	18,707	$	18,445

⁽¹⁾  A majority of revolving are second lien mortgages.

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Geographic Concentrations The following table reflects regional exposure at March 31, 2015 and December 31, 2014, respectively, for certain loan portfolios:

	Commercial Construction and Other Real Estate Loans		Residential Mortgages and Home Equity Mortgages
March 31, 2015:
New York State	34.2	%	33.4	%
California	21.5		34.8
North Central United States	3.5		4.8
North Eastern United States, excluding New York State	9.7		9.2
Southern United States	25.9		13.6
Western United States, excluding California	5.2		4.2
Total	100.0	%	100.0	%
December 31, 2014:
New York State	34.7	%	33.5	%
California	21.8		34.0
North Central United States	3.8		5.1
North Eastern United States, excluding New York State	7.9		9.3
Southern United States	26.7		13.8
Western United States, excluding California	5.1		4.3
Total	100.0	%	100.0	%

Credit Risks Associated with Derivative Contracts  Credit risk associated with derivatives is measured as the net replacement cost of derivative contracts in a receivable position in the event the counterparties of such contracts fail to perform under the terms of those contracts. In managing derivative credit risk, both the current exposure, which is the replacement cost of contracts on the measurement date, as well as an estimate of the potential change in value of contracts over their remaining lives are considered. Counterparties to our derivative activities include financial institutions, central clearing parties, foreign and domestic government agencies, corporations, funds (mutual funds, hedge funds, etc.), insurance companies and private clients as well as other HSBC entities. These counterparties are subject to regular credit review by the credit risk management department. To minimize credit risk, we enter into legally enforceable master netting agreements which reduce risk by permitting the closeout and netting of transactions with the same counterparty upon occurrence of certain events. In addition, we reduce credit risk by obtaining collateral from counterparties. The determination of the need for and the levels of collateral will differ based on an assessment of the credit risk of the counterparty.

The total risk in a derivative contract is a function of a number of variables, such as:

• volatility of interest rates, currencies, equity or corporate reference entity used as the basis for determining contract payments;

• current market events or trends;

• country risk;

• maturity and liquidity of contracts;

• credit worthiness of the counterparties in the transaction;

• the existence of a master netting agreement among the counterparties; and

• existence and value of collateral received from counterparties to secure exposures.

The table below presents total credit risk exposure measured using regulatory capital rules published by U.S. banking regulatory agencies which includes the net positive mark-to-market of the derivative contracts plus any adjusted potential future exposure as measured in reference to the notional amount. The regulatory capital rules recognize that bilateral netting agreements reduce credit risk and, therefore, allow for reductions of risk-weighted assets when netting requirements have been met. As a result, risk-weighted amounts for regulatory capital purposes are a portion of the original gross exposures.

The total credit risk exposure presented in the table below potentially overstates actual credit exposure because it ignores collateral that may have been received from counterparties to secure exposures; and the regulatory capital rules compute exposures over the life of derivative contracts. However, many contracts contain provisions that allow us to close out the transaction if the counterparty

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fails to post required collateral. In addition, many contracts give us the right to break the transactions earlier than the final maturity date. As a result, these contracts have potential future exposures that are often much smaller than the future exposures derived from the regulatory capital rules.

	March 31, 2015		December 31, 2014
	(in millions)
Risk associated with derivative contracts:
Total credit risk exposure(1)	$	41,566	$	41,449
Less: collateral held against exposure	9,559		8,204
Net credit risk exposure	$	32,007	$	33,245

⁽¹⁾  At March 31, 2015, total credit risk exposure is calculated under the Basel III Standardized Approach, which replaced the Basel I risk-based guidance beginning January 1, 2015.

Liquidity and Capital Resources

Effective liquidity management is defined as ensuring we can meet customer loan requests, customer deposit maturities/withdrawals and other cash commitments efficiently under both normal operating conditions and under unpredictable circumstances of industry or market stress. To achieve this objective, we have guidelines that require sufficient liquidity to cover potential funding requirements and to avoid over-dependence on volatile, less reliable funding markets. Guidelines are set for the consolidated balance sheet of HSBC USA to ensure that it is a source of strength for our regulated, deposit-taking banking subsidiary, as well as to address the more limited sources of liquidity available to it as a holding company. Similar guidelines are set for the balance sheet of HSBC Bank USA to ensure that it can meet its liquidity needs in various stress scenarios. Cash flow analysis, including stress testing scenarios, forms the basis for liquidity management and contingency funding plans.

During the first quarter of 2015, marketplace liquidity continued to remain available for most sources of funding. The prolonged period of low interest rates continues to put pressure on spreads earned on our deposit base.

In June 2014, HSBC and HSBC Bank USA submitted its annual resolution plan jointly to the FRB and the FDIC as required under Dodd-Frank and a rule issued by bank regulators relating to the resolution of bank holding companies with assets of $50 billion or more and an FDIC rule relating to the resolution of insured depository institutions with assets of $50 billion or more. In March 2015, the FRB and FDIC completed their reviews of the resolution plan submitted in 2014. The FDIC Board of Directors determined pursuant to section 165(d) of the Dodd-Frank Act that HSBC's 2014 plan is not credible and does not facilitate an orderly resolution under the U.S. Bankruptcy Code. The FRB determined that HSBC must take immediate action to improve its resolvability and reflect those improvements in its 2015 plan. Although the agencies noted some improvements from the original plan submitted in 2013, they jointly identified specific shortcomings with the 2014 resolution plan that will need to be addressed with the 2015 annual submission, which is due by December 31, 2015. The agencies agreed that in the event that HSBC has not, on or before December 31, 2015, submitted a plan responsive to the identified shortcomings, the agencies expect to use their authority under section 165(d) to determine that the resolution plan does not meet the requirements of the Dodd-Frank Act.

As a result of the adoption of the final rules, effective as of January 1, 2014, by the U.S. banking regulators implementing the Basel III regulatory capital and liquidity reforms from the Basel Committee on Banking Supervision ("Basel Committee"), together with the impact of similar implementation by United Kingdom banking regulators, we are reviewing the composition of our capital structure. We anticipate replacing instruments that receive less favorable treatment under the rules with new Basel III compliant instruments.

Interest Bearing Deposits with Banks  totaled $32,249 million and $30,807 million at March 31, 2015 and December 31, 2014, respectively, of which $30,913 million and $29,445 million, respectively, were held with the Federal Reserve Bank. Balances will fluctuate from period to period depending upon our liquidity position at the time and our strategy for deploying such liquidity.

Federal Funds Sold and Securities Purchased under Agreements to Resell  totaled $6,965 million and $1,413 million at March 31, 2015 and December 31, 2014, respectively. In managing our overall liquidity, securities purchased under agreements to resell increased since December 31, 2014, driven by recent debt issuances which have not been re-deployed into loans as well as increases in non-core deposits, net trading liabilities and short-term borrowings.

Trading Assets includes securities totaling $12,628 million and $13,498 million at March 31, 2015 and December 31, 2014, respectively. See "Balance Sheet Review" in this MD&A for further analysis and discussion on trends.

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Securities includes securities available-for-sale and securities held-to-maturity totaling $47,111 million and $43,609 million at March 31, 2015 and December 31, 2014, respectively. See "Balance Sheet Review" in this MD&A for further analysis and discussion on trends.

Short-Term Borrowings  totaled $15,653 million and $12,795 million at March 31, 2015 and December 31, 2014, respectively. See "Balance Sheet Review" in this MD&A for further analysis and discussion on short-term borrowing trends.

Deposits  totaled $119,094 million and $116,118 million at March 31, 2015 and December 31, 2014, respectively, which included $86,779 million and $84,486 million, respectively, of core deposits as calculated in accordance with FFIEC guidelines. See "Balance Sheet Review" in this MD&A for further analysis and discussion on deposit trends.

Long-Term Debtincreased to $29,420 million at March 31, 2015 from $27,524 million at December 31, 2014. The following table presents the maturities of long-term debt at March 31, 2015:

	(in millions)
2015	$	1,519
2016	2,258
2017	5,174
2018	6,250
2019	2,793
Thereafter	11,426
Total	$	29,420

The following table summarizes issuances and retirements of long-term debt during the three months ended March 31, 2015 and 2014:

Three Months Ended March 31,	2015			2014
	(in millions)
Long-term debt issued	$	8,956		$	767
Long-term debt repaid	(7,101		)	(690		)
Net long-term debt issued	$	1,855		$	77

See "Balance Sheet Review" in this MD&A for further analysis and discussion on long-term debt trends, including additional information on debt issued and repaid during the first quarter of 2015.

Under our shelf registration statement on file with the SEC, we may issue certain securities including debt securities and preferred stock. The shelf has no dollar limit, but the amount of debt outstanding is limited by the authority granted by the Board of Directors. At March 31, 2015, we were authorized to issue up to $30,000 million, of which $10,017 million was available. HSBC Bank USA has a $40 billion Global Bank Note Program of which $15,762 million was available at March 31, 2015.

As a member of the FHLB and the Federal Reserve Bank of New York, we have secured borrowing facilities which are collateralized by loans and investment securities. At March 31, 2015, long-term debt included $5,600 million of borrowings from the FHLB facility. Based upon the amounts pledged as collateral under these facilities, we were allowed access to further borrowings of up to $12,065 million.

Preferred Equity  See Note 18, "Preferred Stock," in our 2014 Form 10-K for information regarding all outstanding preferred share issues.

Common Equity  During the first quarter of 2015, HSBC USA repaid $4,000 million of senior long-term debt previously issued to HSBC North America and HSBC Bank USA repaid $900 million of subordinated long-term debt previously issued to HSBC USA. In conjunction with these repayments, HSBC USA received a capital contribution of $4,000 million from its immediate parent, HNAI, in exchange for one share of common stock and HSBC USA made capital contributions to its subsidiary, HSBC Bank USA, of $2,400 million in exchange for two shares of common stock and $2,500 million in exchange for 250 shares of non-cumulative preferred stock. These capital actions were taken to support our growth strategy and to strengthen the Basel III regulatory capital positions of both HSBC USA and HSBC Bank USA.

Selected Capital Ratios  Capital amounts and ratios are calculated in accordance with banking regulations in effect as of March 31, 2015 and December 31, 2014. In managing capital, we develop targets for total capital to risk weighted assets, Tier 1 capital to risk weighted assets, common equity Tier 1 capital to risk weighted assets and Tier 1 capital to average consolidated assets (this latter ratio, also known as the "leverage ratio"). Our targets may change from time to time to accommodate changes in the operating environment, regulatory requirements or other considerations such as those listed above. The following table summarizes selected

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capital ratios for HSBC USA with detailed explanation below. The improvement in the capital ratios since December 31, 2014 reflects the capital actions discussed above.

	March 31, 2015		December 31, 2014
Total capital to risk weighted assets(1)	16.34	%	15.78	%
Tier 1 capital to risk weighted assets(1)	12.61		11.41
Common equity Tier 1 capital to risk weighted assets(1)	11.78		10.33
Tier 1 capital to average consolidated assets (leverage ratio)	9.91		8.54
Total equity to total assets	10.45		9.14

⁽¹⁾  At March 31, 2015, risk weighted assets are calculated under the Basel III Standardized Approach, which replaced the Basel I risk-based guidance for determining risk weighted assets beginning January 1, 2015.

HSBC USA manages capital in accordance with the HSBC Group policy. The HSBC North America and HSBC Bank USA Internal Capital Adequacy Assessment Process ("ICAAP") works in conjunction with the HSBC Group's ICAAP. HSBC North America and HSBC Bank USA's ICAAP evaluates regulatory capital adequacy, economic capital adequacy and capital adequacy under various stress scenarios. Our initial approach is to meet our capital needs for these stress scenarios locally through activities which reduce risk. To the extent that local alternatives are insufficient or unavailable, we will rely on capital support from our parent in accordance with HSBC's capital management policy. HSBC has indicated that they are fully committed and have the capacity to provide capital as needed to run operations, maintain sufficient regulatory capital ratios and fund certain tax planning strategies.

Regulatory capital requirements are based on the amount of capital required to be held, as defined by regulations, and the amount of risk weighted assets, also calculated based on regulatory definitions. Economic Capital is a proprietary measure to estimate unexpected loss at the 99.95 percent confidence level over a 1-year time horizon. Economic Capital is compared to a calculation of available capital resources to assess capital adequacy as part of the ICAAP.

In 2013, U.S. banking regulators issued a final rule implementing the Basel III capital framework in the U.S. ("the Basel III final rule") which, for banking organizations such as HSBC North America and HSBC Bank USA, became effective January 1, 2014 with certain provisions being phased in over time through the beginning of 2019. The Basel III final rule established an integrated regulatory capital framework to improve the quality and quantity of regulatory capital. In addition to phasing in a complete replacement to the Basel I general risk-based capital rules, the Basel III final rule builds on the Advanced Approach of Basel II, incorporates certain changes to Basel 2.5, and implements certain other requirements of the Dodd-Frank Act. As a result, the capital ratios in the table above are reported in accordance with the Basel III transition rules within the final rule. In addition, the Basel III final rule introduced the Standardized Approach for risk weighted assets, which replaced the Basel I risk-based guidance for determining risk weighted assets beginning January 1, 2015. For additional discussion of the Basel III final rule requirements, including fully phased in required minimum risk-based capital ratios and the countercyclical capital buffer (to be phased in, if applicable, beginning January 1, 2016), see Part I, "Regulation and Competition - Regulatory Capital and Liquidity Requirements, in our 2014 Form 10-K.

Additionally, HSBC North America and HSBC Bank USA are subject to the supplementary leverage ratio ("SLR"), with reporting to U.S. regulators commencing January 1, 2015 and full implementation and compliance by January 1, 2018. The minimum SLR is currently set at 3 percent (calculated as the ratio of Tier 1 capital to total leverage exposure, which includes balance sheet exposures plus certain off-balance sheet items). The SLR is generally consistent with the Basel leverage framework, but also contains certain modifications, including to the methodology for averaging total leverage exposure.

In 2014, the FRB adopted a final rule requiring enhanced supervision of the U.S. operations of non-U.S. banks such as HSBC. The rule requires certain large non-U.S. banks with significant operations in the United States, such as HSBC, to establish a single intermediate holding company ("IHC") to hold all of their U.S. bank and non-bank subsidiaries. The HSBC Group currently operates in the United States through such an IHC structure (i.e., HSBC North America), therefore, the implementation of this requirement will not have a significant impact on our U.S. operations. HSBC North America submitted its IHC implementation plan to the FRB on December 31, 2014. Under the final rule, an IHC may calculate its risk-based and leverage capital requirements solely under the Standardized Approach, even if the IHC meets the asset thresholds that would require a bank holding company to use the Advanced Approach ($250 billion or more in total consolidated assets or $10 billion or more of foreign exposures). IHCs will be subject to all other risk-based capital requirements, including the SLR, stress testing requirements, enhanced risk management standards, and enhanced governance and stress testing requirements for liquidity management, as well as other prudential standards. Under the final rule, most of these requirements will become effective on July 1, 2016. The implementation of these requirements of the final rule is not expected to have a significant impact on our processes and operations since we already meet several of the requirements. In accordance with the final rule, HSBC North America received approval from the FRB to opt out of the Advanced Approach in December 2014. In addition, HSBC Bank USA may also opt out of the Advanced Approach with

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the prior approval of the OCC. HSBC North America will, however, remain subject to the other capital requirements applicable to advanced approach banking organizations, including the SLR and the countercyclical capital buffer discussed above.

With regard to the elements of capital, the application of the Basel III final rule requires HSBC USA to phase trust preferred securities issued prior to May 19, 2010 out of Tier 1 capital by January 1, 2016, with 50 percent of these capital instruments includable in Tier 1 capital in 2014 and 25 percent includable in 2015. The trust preferred securities excluded from Tier 1 capital may be included fully in Tier 2 capital during those two years, but must be phased out of Tier 2 capital by January 1, 2022. We continue to consider options for redeeming our outstanding trust preferred securities which total $550 million at March 31, 2015. In addition, any nonconforming Tier 2 subordinated debt issued prior to May 19, 2010 is required to be phased out by January 1, 2016. As a result, approximately $200 million of our currently outstanding Tier 2 subordinated debt will be phased out of capital under the final rule. Also under the final rule, Tier 1 capital generally includes only noncumulative perpetual preferred stock, in addition to common stock, and the final rule removes the limitation on the amount of Tier 2 capital that may be recognized relative to Tier 1 capital. As a result, our $300 million of cumulative perpetual preferred stock will be reclassified from Tier 1 to Tier 2 capital by January 1, 2016. See "Common Equity" above for a discussion of capital actions taken by HSBC USA and HSBC Bank USA during the first quarter of 2015.

In 2014, the Financial Stability Board ("FSB"), an international financial institutions regulatory body, issued a proposal for a total loss-absorbing capacity requirement ("TLAC") for global systemically important banks ("G-SIBs"). The proposed requirements would be a significant extension of the current regulatory capital framework, which is aimed at ensuring that a banking organization can absorb losses without falling into resolution. In addition to significantly expanding the amount of such going-concern loss absorbency, the TLAC proposal introduces a requirement to issue specified amounts of debt obligations that can absorb losses in a resolution proceeding if the banking organization reaches the so-called point of non-viability. The TLAC requirement is to be applied in accordance with the banking organization's resolution strategy for each entity that would enter resolution as determined by the G-SIB Crisis Management Group. The FSB received comments on the proposal until February 2, 2015 and plans to conduct additional analysis, including a quantitative impact study, before adopting a final rule in November 2015. Once finalized, each FSB jurisdiction must implement the requirements under local law. Although the FSB does not anticipate global implementation until January 2019, certain jurisdictions, including the United States, are expected to implement the TLAC requirements sooner.

Capital Planning and Stress Testing. U.S. bank holding companies with $50 billion or more in total consolidated assets, including HSBC North America, are required to comply with the FRB's capital plan rule and Comprehensive Capital Analysis and Review ("CCAR") program, as well as the annual supervisory stress tests conducted by the FRB, and the semi-annual company-run stress tests as required under the Dodd-Frank Act (collectively, "DFAST"). Under the rules, the FRB will evaluate bank holding companies annually on their capital adequacy, internal capital adequacy assessment process and plans for capital distributions, and will approve capital distributions only for companies that are able to demonstrate sufficient capital strength after making the capital distributions. HSBC North America participates in the CCAR and DFAST programs of the FRB and submitted its latest CCAR capital plan and annual company-run DFAST results in January 2015. In July 2014, HSBC North America submitted its first mid-cycle company-run DFAST results. HSBC Bank USA is subject to the OCC's DFAST requirements, which require certain banks to conduct annual bank-run DFAST, and submitted its latest DFAST results in January 2015. The company-run stress tests are forward looking exercises to assess the impact of hypothetical macroeconomic baseline, adverse and severely adverse scenarios provided by the FRB and the OCC for the annual exercise, and internally developed scenarios for both the annual and mid-cycle exercises, on the financial condition and capital adequacy of a bank-holding company or bank over a nine quarter planning horizon.

HSBC North America and HSBC Bank USA are required to disclose the results of their annual DFAST under the FRB and OCC’s severely adverse stress scenario and HSBC North America is required to disclose the results of its mid-cycle DFAST under its internally developed severely adverse stress scenario. HSBC North America and HSBC Bank USA publicly disclosed their most recent DFAST results, as required, in March 2015 and HSBC North America publicly disclosed its most recent mid-cycle DFAST results, as required, in September 2014. The FRB also publicly disclosed its own DFAST and CCAR results in March 2015.

In March 2015, the FRB informed HSBC North America, our indirect parent company, that it did not object to HSBC North America's capital plan or the planned capital distributions included in its 2015 CCAR submission, including payment of dividends on outstanding preferred stock and trust preferred securities of HSBC North America and its subsidiaries. Stress testing results are based solely on hypothetical adverse scenarios and should not be viewed or interpreted as forecasts of expected outcomes or capital adequacy or of the actual financial condition of HSBC North America. Capital planning and stress testing for HSBC North America may impact our future capital and liquidity.

In October 2014, U.S. regulators issued a final rule that amends the CCAR capital planning and DFAST supervisory stress testing rules to shift the start date of the annual capital plan and supervisory and company-run stress test cycles back by one calendar quarter. The 2015 cycle began October 1, 2014 with a capital plan submission date of January 5, 2015. However, the next annual cycle will begin January 1, 2016 with a capital plan submission date of April 5, 2016. The final rule made certain other substantive changes to the capital plan and stress test regulations, including limiting a bank holding company's ability to make capital

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distributions (subject to certain exceptions) if its actual capital issuances in that quarter were less than the amount indicated in the capital plan. We are reviewing the potential impact of the final rule on our capital planning and stress testing processes.

We and HSBC Bank USA are required to meet minimum capital requirements by our principal regulators. Risk-based capital amounts and ratios are presented in Note 15, "Retained Earnings and Regulatory Capital Requirements," in the accompanying consolidated financial statements.

2015 Funding Strategy  Our current estimate for funding needs and sources for 2015 are summarized in the following table:

	Actual January 1 through March 31, 2015			Estimated April 1 through December 31, 2015		Estimated Full Year 2015
	(in billions)
Funding needs:
Net loan growth	$	4		$	7	$	11
Long-term debt maturities	3			1		4
Repayment of senior debt issued to HSBC North America	4			—		4
Total funding needs	$	11		$	8	$	19
Funding sources:
Net change in short-term investments	$	(2	)	$	5	$	3
Long-term debt issuance	9			3		12
Capital contribution from parent	4			—		4
Total funding sources	$	11		$	8	$	19

The above table reflects a long-term funding strategy. Daily balances fluctuate as we accommodate customer needs, while ensuring that we have liquidity in place to support the balance sheet maturity funding profile. Should market conditions deteriorate, we have contingency plans to generate additional liquidity through the sales of assets or financing transactions. Our prospects for growth continue to be dependent upon our ability to attract and retain deposits and, to a lesser extent, access to the global capital markets. We remain confident in our ability to access the market for long-term debt funding needs in the current market environment. We continue to seek well-priced and stable customer deposits. We will continue to sell a portion of new mortgage loan originations to PHH Mortgage.

HSBC Finance relies on its affiliates, including HSBC USA, to satisfy its funding needs outside of cash generated from its loan sales and operations.

HSBC Bank USA is subject to significant restrictions imposed by federal law on extensions of credit to, and certain other "covered transactions" with HSBC USA and other affiliates. Covered transactions include loans and other extensions of credit, investments and asset purchases, and certain other transactions involving the transfer of value from a subsidiary bank to an affiliate or for the benefit of an affiliate. A bank's credit exposure to an affiliate as a result of a derivative, securities lending/borrowing or repurchase transaction is also subject to these restrictions. A bank's transactions with its non-bank affiliates are also required to be on arm's length terms. Certain Edge Act subsidiaries of HSBC Bank USA are limited in the amount of funds they can provide to other affiliates including their parent. Amounts above their level of invested capital have to be secured with U.S. government securities.

For further discussion relating to our sources of liquidity and contingency funding plan, see the caption "Risk Management" in this MD&A.

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Off-Balance Sheet Arrangements, Credit Derivatives and Other Contractual Obligations

As part of our normal operations, we enter into credit derivatives and various off-balance sheet arrangements with affiliates and third parties. These arrangements arise principally in connection with our lending and client intermediation activities and involve primarily extensions of credit and, in certain cases, guarantees.

As a financial services provider, we routinely extend credit through loan commitments and lines and letters of credit and provide financial guarantees, including derivative transactions having characteristics of a guarantee. The contractual amounts of these financial instruments represent our maximum possible credit exposure in the event that a counterparty draws down the full commitment amount or we are required to fulfill our maximum obligation under a guarantee.

The following table provides maturity information related to our credit derivatives and off-balance sheet arrangements. Many of these commitments and guarantees expire unused or without default. As a result, we believe that the contractual amount is not representative of the actual future credit exposure or funding requirements.

	Balance at March 31, 2015
	One Year or Less		Over One through Five Years		Over Five Years		Total		Balance at December 31, 2014
	(in millions)
Standby letters of credit, net of participations(1)	$	6,530	$	2,534	$	53	$	9,117	$	8,441
Commercial letters of credit	424		221		—		645		659
Credit derivatives(2)	25,217		86,076		4,392		115,685		117,768
Other commitments to extend credit:
Commercial(3)	18,687		59,131		4,750		82,568		80,226
Consumer	6,839		—		—		6,839		6,821
Total	$	57,697	$	147,962	$	9,195	$	214,854	$	213,915

⁽¹⁾  Includes $880 million and $937 million issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  Includes $32,035 million and $32,688 million issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

⁽³⁾  Includes $3,925 million and $3,606 million issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

Other Commitments to Extend Credit  Other commitments to extend credit include arrangements whereby we are contractually obligated to extend credit in the form of loans, participations in loans, lease financing receivables, or similar transactions. Consumer commitments are comprised of certain unused MasterCard/Visa credit card lines, where we have the right to change terms or conditions upon notification to the customer, and commitments to extend credit secured by residential properties, where we have the right to change terms or conditions, for cause, upon notification to the customer. Commercial commitments comprise primarily those related to secured and unsecured loans and lines of credit and certain asset purchase commitments. In connection with our commercial lending activities, we provide liquidity support to Regency, a multi-seller asset backed commercial paper ("ABCP") conduit consolidated by an HSBC affiliate. See Note 16, "Variable Interest Entities," in the accompanying consolidated financial statements for additional information regarding ABCP conduits and our variable interests in them.

We provide liquidity support to Regency in the form of lines of credit or asset purchase agreements. Under the terms of these liquidity agreements, Regency may call upon us to lend money or to purchase certain assets in the event the conduit is unable or unwilling to issue or rollover maturing commercial paper. The maximum amount that we could be required to advance is generally limited to the lesser of the amount of outstanding commercial paper related to the supported transaction and the balance of the assets underlying that transaction adjusted by a funding formula that excludes defaulted and impaired assets. As a result, the maximum amount that we would be required to fund may be significantly less than the maximum contractual amount specified by the liquidity agreement.

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The following tables present information on our liquidity facilities with Regency at March 31, 2015. The maximum exposure to loss presented in the first table represents the maximum contractual amount of loans and asset purchases we could be required to make under the liquidity agreements. This amount does not reflect the funding limits discussed above and also assumes that we suffer a total loss on all amounts advanced and all assets purchased from Regency. As such, we believe that this measure significantly overstates our expected loss exposure.

			Conduit Assets(1)			Conduit Funding(1)
Conduit Type	Maximum Exposure to Loss		Total Assets		Weighted Average Life (Months)	Commercial Paper		Weighted Average Life (Days)
	(dollars are in millions)
HSBC affiliate sponsored (multi-seller)	$	2,710	$	1,325	9	$	1,325	14

⁽¹⁾  The amounts presented represent only the specific assets and related funding supported by our liquidity facilities.

	Average Asset Mix		Average Credit Quality(1)
Asset Class			AAA		AA+/AA		A		A–		BB/BB–
Multi-seller conduit
Debt securities backed by:
Auto loans and leases	44	%	69	%	—	%	—	%	—	%	—	%
Trade receivables	36		—		100		100		—		—
Equipment loans	20		31		—		—		—		—
	100	%	100	%	100	%	100	%	—	%	—	%

⁽¹⁾  Credit quality is based on Standard and Poor’s ratings at March 31, 2015.

We receive fees for providing these liquidity facilities. Credit risk on these obligations is managed by subjecting them to our normal underwriting and risk management processes.

The preceding tables do not include information on credit facilities that we previously provided to certain Canadian multi-seller ABCP conduits that have been subject to restructuring agreements as part of the Montreal Accord. As part of the enhanced collateral pool established for the restructuring, we provided a Margin Funding Facility to a Master Asset Vehicle which is undrawn and expires in July 2017. At March 31, 2015, the undrawn facility has been reduced to CAD $77 million from CAD $112 million at December 31, 2014.

We have established and manage a number of constant net asset value ("CNAV") money market funds that invest in shorter-dated highly-rated money market securities to provide investors with a highly liquid and secure investment. These funds price the assets in their portfolio on an amortized cost basis, which enables them to create and liquidate shares at a constant price. The funds, however, are not permitted to price their portfolios at amortized cost if that amount varies by more than 50 basis points from the portfolio's market value. In that case, the fund would be required to price its portfolio at market value and consequently would no longer be able to create or liquidate shares at a constant price. We do not consolidate the CNAV funds because we do not absorb the majority of the expected future risk associated with the fund's assets, including interest rate, liquidity, credit and other relevant risks that are expected to affect the value of the assets.

Fair Value

Fair value measurement accounting principles require a reporting entity to take into consideration its own credit risk in determining the fair value of financial liabilities. The incorporation of our own credit risk accounted for a decrease of $99 million in the fair value of financial liabilities during the three months ended March 31, 2015, compared with a decrease of $45 million during the three months ended March 31, 2014.

Net income volatility arising from changes in either interest rate or credit components of the mark-to-market on debt designated at fair value and related derivatives affects the comparability of reported results between periods. Accordingly, the gain (loss) on debt designated at fair value and related derivatives during the first quarter of 2015 should not be considered indicative of the results for any future period.

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Control Over Valuation Process and Procedures  We have established a control framework which is designed to ensure that fair values are either determined or validated by a function independent of the risk-taker. See Note 18, "Fair Value Measurements" in the accompanying consolidated financial statements for further details on our valuation control framework.

Fair Value Hierarchy  Fair value measurement accounting principles establish a fair value hierarchy structure that prioritizes the inputs to determine the fair value of an asset or liability (the "Fair Value Framework"). The Fair Value Framework distinguishes between inputs that are based on observed market data and unobservable inputs that reflect market participants' assumptions. It emphasizes the use of valuation methodologies that maximize observable market inputs. For financial instruments carried at fair value, the best evidence of fair value is a quoted price in an actively traded market (Level 1). Where the market for a financial instrument is not active, valuation techniques are used. The majority of our valuation techniques use market inputs that are either observable or indirectly derived from and corroborated by observable market data for substantially the full term of the financial instrument (Level 2). Because Level 1 and Level 2 instruments are determined by observable inputs, less judgment is applied in determining their fair values. In the absence of observable market inputs, the financial instrument is valued based on valuation techniques that feature one or more significant unobservable inputs (Level 3). The determination of the level of fair value hierarchy within which the fair value measurement of an asset or a liability is classified often requires judgment and may change over time as market conditions evolve. We consider the following factors in developing the fair value hierarchy:

• whether the asset or liability is transacted in an active market with a quoted market price;

• the level of bid-ask spreads;

• a lack of pricing transparency due to, among other things, complexity of the product and market liquidity;

• whether only a few transactions are observed over a significant period of time;

• whether the pricing quotations differ substantially among independent pricing services;

• whether inputs to the valuation techniques can be derived from or corroborated with market data; and

• whether significant adjustments are made to the observed pricing information or model output to determine the fair value.

Level 1 inputs are unadjusted quoted prices in active markets that the reporting entity has the ability to access for identical assets or liabilities. A financial instrument is classified as a Level 1 measurement if it is listed on an exchange or is an instrument actively traded in the over-the-counter ("OTC") market where transactions occur with sufficient frequency and volume. We regard financial instruments such as equity securities and derivative contracts listed on the primary exchanges of a country to be actively traded. Non-exchange-traded instruments classified as Level 1 assets include securities issued by the U.S. Treasury or by other foreign governments, to-be-announced ("TBA") securities and non-callable securities issued by U.S. government sponsored entities.

Level 2 inputs are those that are observable either directly or indirectly but do not qualify as Level 1 inputs. We classify mortgage pass-through securities, agency and certain non-agency mortgage collateralized obligations, certain derivative contracts, asset-backed securities, corporate debt, foreign government-backed debt, preferred securities, precious metals and certain commercial loans held for sale as Level 2 measurements. Where possible, at least two quotations from independent sources are obtained based on transactions involving comparable assets and liabilities to validate the fair value of these instruments. We have established a process to understand the methodologies and inputs used by the third party pricing services to ensure that pricing information met the fair value objective. Where significant differences arise among the independent pricing quotes and the internally determined fair value, we investigate and reconcile the differences. If the investigation results in a significant adjustment to the fair value, the instrument will be classified as Level 3 within the fair value hierarchy. In general, we have observed that there is a correlation between the credit standing and the market liquidity of a non-derivative instrument.

Level 2 derivative instruments are generally valued based on discounted future cash flows or an option pricing model adjusted for counterparty credit risk and market liquidity. The fair value of certain structured derivative products is determined using valuation techniques based on inputs derived from observable benchmark index tranches traded in the OTC market. Appropriate control processes and procedures have been applied to ensure that the derived inputs are applied to value only those instruments that share similar risks to the relevant benchmark indices and therefore demonstrate a similar response to market factors. In addition, a validation process has been established, which includes participation in peer group consensus pricing surveys, to ensure that valuation inputs incorporate market participants' risk expectations and risk premium.

Level 3 inputs are unobservable estimates that management expects market participants would use to determine the fair value of the asset or liability. That is, Level 3 inputs incorporate market participants' assumptions about risk and the risk premium required by market participants in order to bear that risk. We develop Level 3 inputs based on the best information available in the circumstances. As of March 31, 2015 and December 31, 2014, our Level 3 instruments included the following: collateralized debt obligations ("CDOs") for which there is a lack of pricing transparency due to market illiquidity, certain structured deposits and structured notes as well as certain structured credit and structured equity derivatives where significant inputs (e.g., volatility or default correlations) are not observable, credit default swaps with certain monoline insurers where the deterioration in the creditworthiness of the counterparty, which is unobservable, has resulted in significant adjustments to fair value, subprime mortgage

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loans held for sale, certain corporate debt securities, impaired commercial loans, mortgage servicing rights, and derivatives referenced to illiquid assets of less desirable credit quality. See Note 18, "Fair Value Measurements" in the accompanying consolidated financial statements for additional information on Level 3 inputs.

Transfers between levels of the fair value hierarchy are recognized at the end of each reporting period.

Transfers Between Level 1 and Level 2 Measurements  During the three months ended March 31, 2015 and 2014, there were no transfers between Level 1 and Level 2 measurements.

Level 3 Measurements  The following table provides information about Level 3 assets/liabilities in relation to total assets/liabilities measured at fair value as of March 31, 2015 and December 31, 2014:

	March 31, 2015			December 31, 2014
	(dollars are in millions)
Level 3 assets(1)(2)	$	3,758		$	3,810
Total assets measured at fair value(3)	136,646			122,473
Level 3 liabilities	2,776			2,863
Total liabilities measured at fair value(1)	101,649			90,892
Level 3 assets as a percent of total assets measured at fair value	2.8		%	3.1		%
Level 3 liabilities as a percent of total liabilities measured at fair value	2.7		%	3.1		%

⁽¹⁾  Presented without netting which allows the offsetting of amounts relating to certain contracts if certain conditions are met.

⁽²⁾  Includes $3,705 million of recurring Level 3 assets and $53 million of non-recurring Level 3 assets at March 31, 2015. Includes $3,752 million of recurring Level 3 assets and $58 million of non-recurring Level 3 assets at December 31, 2014.

⁽³⁾  Includes $136,498 million of assets measured on a recurring basis and $148 million of assets measured on a non-recurring basis at March 31, 2015. Includes $122,155 million of assets measured on a recurring basis and $318 million of assets measured on a non-recurring basis at December 31, 2014.

Significant Changes in Fair Value for Level 3 Assets and Liabilities

Derivative Assets and Counterparty Credit Risk We have entered into credit default swaps with monoline insurers to hedge our credit exposure in certain asset-backed securities and synthetic CDOs. We made $5 million and $16 million positive credit risk adjustments to the fair value of our credit default swap contracts during the three months ended March 31, 2015 and 2014, respectively. These adjustments to fair value are recorded in trading revenue in the consolidated statement of income. We have recorded a cumulative credit adjustment reserve of $48 million and $53 million against our monoline exposure at March 31, 2015 and December 31, 2014, respectively. The fair value of our monoline exposure net of cumulative credit adjustment reserves equaled $177 million and $204 million at March 31, 2015 and December 31, 2014, respectively.

Significant Transfers Into and Out of Level 3 Measurements  During the three months ended March 31, 2015, we transferred $101 million of deposits in domestic offices and $20 million of long-term debt, which we have elected to carry at fair value, from Level 3 to Level 2 as a result of the embedded derivative no longer being unobservable as the derivative option is closer to maturity and there is more observability in short term volatility.

During the three months ended March 31, 2014, we transferred $140 million of deposits in domestic offices and $71 million of long-term debt, which we have elected to carry at fair value, from Level 3 to Level 2 as a result of the embedded derivative no longer being unobservable as the derivative option is closer in maturity and there is more observability in short term volatility. Additionally, during the three months ended March 31, 2014, we transferred $68 million of deposits in domestic offices, which we have elected to carry at fair value, from Level 2 to Level 3 as a result of a change in the observability of underlying instruments that resulted in the embedded derivative being unobservable.

See Note 18, "Fair Value Measurements," in the accompanying consolidated financial statements for information on additions to and transfers into (out of) Level 3 measurements during the three months ended March 31, 2015 and 2014 as well as for further details including the classification hierarchy associated with assets and liabilities measured at fair value.

Effect of Changes in Significant Unobservable Inputs  The fair value of certain financial instruments is measured using valuation techniques that incorporate pricing assumptions not supported by, derived from or corroborated by observable market data. The resultant fair value measurements are dependent on unobservable input parameters which can be selected from a range of estimates and may be interdependent. Changes in one or more of the significant unobservable input parameters may change the fair value measurements of these financial instruments. For the purpose of preparing the financial statements, the final valuation inputs selected are based on management's best judgment that reflect the assumptions market participants would use in pricing similar assets or liabilities.

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The unobservable input parameters selected are subject to the internal valuation control processes and procedures. When we perform a test of all the significant input parameters to the extreme values within the range at the same time, it could result in an increase of the overall fair value measurement of approximately $27 million or a decrease of the overall fair value measurement of approximately $36 million as of March 31, 2015. The effect of changes in significant unobservable input parameters are primarily driven by mortgage servicing rights, certain asset-backed securities including CDOs, and the uncertainty in determining the fair value of credit derivatives executed against monoline insurers.

Assets Underlying Asset-backed Securities  The following tables summarize the types of assets underlying our asset-backed securities as well as certain collateralized debt obligations held as of March 31, 2015:

		Total
		(in millions)
Rating of securities:(1)	Collateral type:
AAA	Commercial mortgages	$	29
	Residential mortgages - Alt A	80
	Residential mortgages - Subprime	1
	Total AAA	110
AA	Other	42
A	Residential mortgages - Alt A	8
	Residential mortgages - Subprime	52
	Home equity - Alt A	85
	Student loans	88
	Other	53
	Total A	286
BBB	Residential mortgages - Alt A	2
	Collateralized debt obligations	253
	Total BBB	255
CCC	Residential mortgages - Subprime	6
		$	699

⁽¹⁾   We utilize S&P as the primary source of credit ratings in the tables above. If S&P ratings are not available, ratings by Moody's and Fitch are used, in that order. Ratings for collateralized debt obligations represent the ratings associated with the underlying collateral.

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Risk Management

Overview  Some degree of risk is inherent in virtually all of our activities. The HSBC U.S. risk appetite framework describes through its risk appetite statement and its risk appetite limits and thresholds the quantum and types of risk that it is prepared to take in executing its strategy. It develops and maintains the linkages between strategy, capital, risk management processes and HSBC Group Strategy and directs HSBC North America’s businesses to be targeted along strategic and risk priorities and in line with the forward view of available capital under stress. Accordingly, we have comprehensive risk management policies and practices in place to address potential risks, which include the following:

• Credit risk is the potential that a borrower or counterparty will default on a credit obligation, as well as the impact on the value of credit instruments due to changes in the probability of borrower default; Credit risk includes risk associated with cross-border exposures.

• Liquidity risk is the potential that an institution will be unable to meet its obligations as they become due or fund its customers because of inadequate cash flow or the inability to liquidate assets or obtain funding itself;

• Interest rate risk is the potential impairment of net interest income due to mismatched pricing between assets and liabilities as well as losses in value due to interest rate movements;

• Market risk is the risk that movements in market factors, including foreign exchange rates and commodity prices, interest rates, credit spreads and equity prices, will reduce our income or the value of our portfolios;

• Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, or systems, or from external events (including legal risk);

• Compliance risk is the risk that we fail to observe the letter and spirit of all relevant laws, codes, rules, regulations and standards of good market practice causing us to incur fines, penalties and damage to our business and reputation;

• Fiduciary risk is the risk of breaching fiduciary duties where we act in a fiduciary capacity as trustee, investment manager or as mandated by law or regulation;

• Reputational risk is the risk arising from failure to meet stakeholder expectations as a result of any event, behavior, action or inaction, either by us, our employees, the HSBC Group or those with whom it is associated, that may cause stakeholders to form a negative view of us. This might also result in financial or non-financial impacts, loss of confidence or other consequences.

• Strategic risk is the risk that the business will fail to identify, execute, and react appropriately to opportunities and/or threats arising from changes in the market, some of which may emerge over a number of years such as changing economic and political circumstances, customer requirements, demographic trends, regulatory developments or competitor action;

• Security and Fraud risk is the risk to the business from terrorism, crime, fraud, information security, incidents/disasters, cyber-attacks and groups hostile to HSBC interests;

• Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. This occurs primarily for two reasons: 1) the model may produce inaccurate outputs when compared with the intended business use and design objective; and 2) the model could be used incorrectly; and

• Pension risk is the risk that the cash flows associated with pension assets will not be enough to cover the pension benefit obligations required to be paid and includes the risk that assumptions used by our actuaries may differ from actual experience.

See "Risk Management" in MD&A in our 2014 Form 10-K for a more complete discussion of the objectives of our risk management system as well as our risk management policies and practices. Our risk management process involves the use of various simulation models. We believe that the assumptions used in these models are reasonable, but actual events may unfold differently than what is assumed in the models. Consequently, model results may be considered reasonable estimates, with the understanding that actual results may differ significantly from model projections.

Credit Risk Management Credit risk is the potential that a borrower or counterparty will default on a credit obligation, as well as the impact on the value of credit instruments due to changes in the probability of borrower default. Credit risk includes risk associated with cross-border exposures. There have been no material changes to our approach towards credit risk management since December 31, 2014. See "Risk Management" in MD&A in our 2014 Form 10-K for a more complete discussion of our approach to credit risk.

Credit risk is inherent in various on- and off-balance sheet instruments and arrangements, such as:

• loan portfolios;

• investment portfolios;

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• unfunded commitments such as letters of credit, lines of credit, and unutilized credit card lines that customers can draw upon; and

• derivative financial instruments, such as interest rate swaps which, if more valuable today than when originally contracted, may represent an exposure to the counterparty to the contract.

While credit risk exists widely in our operations, diversification among various commercial and consumer portfolios helps to lessen risk exposure. Day-to-day management of credit and market risk is performed by the Chief Credit Officer/Head of Wholesale Credit and Market Risk North America and the HSBC North America Chief Retail Credit Officer, who report directly to the HSBC North America Chief Risk Officer and maintain independent risk functions. The credit risk associated with commercial portfolios is managed by the Chief Credit Officer, while credit risk associated with retail consumer loan portfolios, such as credit cards, installment loans and residential mortgages, is managed by the HSBC North America Chief Retail Credit Officer. Further discussion of credit risk can be found under the "Credit Quality" caption in this MD&A.

Liquidity Risk Management  There have been no material changes to our approach towards liquidity risk management since December 31, 2014. See “Risk Management” in MD&A in our 2014 Form 10-K for a more complete discussion of our approach to liquidity risk. Although our overall approach to liquidity management has not changed, we continuously monitor the impact of market events on our liquidity positions and continue to adapt our liquidity framework to reflect market events and the evolving regulatory landscape and view as to best practices. Current regulatory initiatives encourage banks to retain a portfolio of extremely high quality liquid assets. As such, we are maintaining a large portfolio of high quality sovereign and sovereign guaranteed securities.

Our liquidity management approach includes increased deposits and potential sales (e.g. residential mortgage loans) in liquidity contingency plans. As previously discussed, HSBC Finance relies on its affiliates, including HSBC USA, to satisfy its funding needs outside of cash generated from its loan sales and operations.

As part of our liquidity management framework, stressed coverage ratios are derived from stressed cash flow scenario analyses and express the stressed cash inflows as a percentage of stressed cash outflows over one-month and three-month time horizons. At March 31, 2015, our one-month and three-month stressed coverage ratios were 111 percent and 101 percent, respectively. At December 31, 2014, our one-month and three-month stressed coverage ratios were 111 percent and 104 percent, respectively. A stressed coverage ratio of 100 percent or higher reflects a positive cumulative cash flow under the stress scenario being monitored. HSBC operating entities are required to maintain a ratio of 100 percent or greater out to three months under the combined market-wide and HSBC-specific stress scenario defined by the inherent liquidity risk categorization of the operating entity concerned.

In addition, the Asset and Liability Management Committee monitors the ratio of Advances to Core Funding ("ACF"). The ACF ratio measures what percentage of our stable sources of long-term funding (generally customer deposits deemed to be "core" in accordance with HSBC policy and debt with at least 12 months until maturity) are utilized in providing loans to customers. We are required to maintain an ACF ratio below 105 percent. At March 31, 2015 and December 31, 2014, our ACF ratio was 96 percent and 101 percent, respectively.

In 2009, the Basel Committee proposed two minimum liquidity metrics for limiting risk: the liquidity coverage ratio ("LCR"), designed to be a short-term measure to ensure banks have sufficient high-quality liquid assets to cover net stressed cash outflows over the next 30 days, and the net stable funding ratio ("NSFR"), which is a longer term measure with a 12-month time horizon to ensure a sustainable maturity structure of assets and liabilities. The Basel Committee finalized the LCR in January 2013 with phase-in beginning in 2015. The Basel Committee finalized the NSFR in October 2014.

In September 2014, the FRB, the OCC and the FDIC issued final regulations to implement the LCR in the U.S., applicable to certain large banking institutions, including HSBC North America and HSBC Bank USA. The LCR final rule is generally consistent with the Basel Committee guidelines, but is more stringent in several areas including the range of assets that will qualify as high-quality liquid assets and the assumed rate of outflows of certain kinds of funding. Under the final rule, U.S. institutions began the LCR transition period on January 1, 2015 and are required to maintain a minimum LCR of 100 percent by January 1, 2017, two years ahead of the Basel Committee's timeframe for compliance by January 1, 2019. At March 31, 2015, HSBC Bank USA's LCR ratio under the final U.S. LCR rule was 110 percent. HSBC Bank USA's LCR is calculated based on our current interpretation and understanding of the U.S. LCR rule and may differ in future periods depending on further implementation guidance from our regulators. The LCR final rule does not address the NSFR requirement, which is currently in an international observation period. Based on the results of the observation period, the Basel Committee and U.S. banking regulators may make further changes to the NSFR. The U.S. regulators have not yet proposed rules to implement the NSFR for U.S. banks and bank holding companies but are expected to do so well in advance of the NSFR's scheduled global implementation by January 1, 2018.

In the first quarter of 2014, the FRB issued rules pursuant to Section 165 of the Dodd-Frank Act, which established enhanced prudential standards for U.S. bank holding companies and foreign banking organizations with total global consolidated assets of $50 billion or more. The rules complement the LCR, capital planning, resolution planning, and stress testing requirements that have been finalized. The rules require bank holding companies, such as HSBC North America, to comply with various liquidity risk management standards and to maintain a liquidity buffer of unencumbered highly liquid assets based on the results of internal

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liquidity stress testing. Beginning January 1, 2015, bank holding companies are also required to meet heightened liquidity requirements, which include qualitative liquidity standards, cash flow projections, internal liquidity stress tests, and liquidity buffer requirements. HSBC North America has implemented the standard and it does not have a significant impact to our business model. Starting on July 1, 2016, HSBC North America will be treated as an IHC owned by a foreign banking organization. This transition is not expected to have a significant impact on our U.S. operations or change our liquidity management policies.

HSBC North America and HSBC Bank USA have adjusted their liquidity profiles to support compliance with these rules. HSBC North America and HSBC Bank USA may need to make further changes to their liquidity profiles to support compliance with any future final rules.

Our ability to regularly attract wholesale funds at a competitive cost is enhanced by strong ratings from the major credit ratings agencies. The following table reflects the long and short-term debt ratings HSBC USA and HSBC Bank USA maintained at March 31, 2015:

	Moody’s	S&P	Fitch	DBRS(1)
HSBC USA:
Short-term borrowings	P-1	A-1	F1+	R-1 (middle)
Long-term/senior debt	A2	A	AA-	AA (low)
HSBC Bank USA:
Short-term borrowings	P-1	A-1+	F1+	R-1 (middle)
Long-term/senior debt	A1	AA-	AA-	AA (low)

(1) Dominion Bond Rating Service.

In February 2015, S&P took various rating agency actions on certain European banks, including HSBC, following a review of government support. As a result of this review, the long-term debt rating of HSBC USA was downgraded to A and the long-term debt rating of HSBC Bank USA was put on negative watch. As part of this review, the short-term ratings of both HSBC USA and HSBC Bank USA were re-affirmed. It is not anticipated that the actions taken by S&P will significantly impact our funding cost or strategy.

In March 2015, Moody's published material revisions to the form and content of its global bank rating methodology. In the United States, Moody's expects the revised methodology will have generally positive effects on bank deposit ratings and mixed, though net negative, effects on senior unsecured debt ratings, reflecting explicit deposit preference in resolution. Following the publication of their revised methodology, Moody's placed the senior debt ratings of HSBC USA and HSBC Bank USA and the deposit rating of HSBC Bank USA under review for potential upgrade. This review is expected to be completed by June 2015. It is not anticipated that the actions taken by Moody's will significantly impact our funding cost or strategy.

Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, future profitability, risk management practices and litigation matters, all of which could lead to adverse ratings actions. For example, in addition to the actions mentioned above, Moody's published in January 2015 a request for comment regarding new counterparty risk ratings which will be distinct from debt, deposit or issuer ratings in that it will measure default probability rather than expected loss, and will apply to counterparty obligations and contractual commitments rather than debt or deposit instruments. This new rating will provide an opinion on a bank's counterparty risk related to its covered bonds, contractual performance obligations (e.g. servicing), derivatives (e.g. swaps), letters of credit, certain guarantees and liquidity facilities. Although we closely monitor and strive to manage factors influencing our credit ratings, there is no assurance that our credit ratings will not be changed in the future. Other than the Moody's review discussed above, as of March 31, 2015, there were no other pending actions in terms of changes to ratings on the debt of HSBC USA or HSBC Bank USA from any of the rating agencies.

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Interest Rate Risk Management  Various techniques are utilized to quantify and monitor risks associated with the repricing characteristics of our assets, liabilities and derivative contracts. Our approach to managing interest rate risk is summarized in MD&A in our 2014 Form 10-K under the caption “Risk Management”. There have been no material changes to our approach towards interest rate risk management since December 31, 2014.

Present value of a basis point ("PVBP")  is the change in value of the balance sheet for a one basis point upward movement in all interest rates. The following table reflects the PVBP position at March 31, 2015 and December 31, 2014:

	March 31, 2015		December 31, 2014
	(in millions)
Institutional PVBP movement limit	$	8.0	$	8.0
PVBP position at period end	4.4		4.8

Net interest income simulation modeling techniques  are utilized to monitor a number of interest rate scenarios for their impact on net interest income. These techniques include both rate shock scenarios, which assume immediate market rate movements by as much as 200 basis points, as well as scenarios in which rates rise or fall by as much as 200 basis points over a twelve month period. The following table reflects the impact on net interest income of the scenarios utilized by these modeling techniques:

	March 31, 2015					December 31, 2014
	Amount			%		Amount			%
	(dollars are in millions)
Projected change in net interest income (reflects projected rate movements on April 1 and January 1):
Change resulting from a gradual 100 basis point increase in the yield curve	$	251		10		$	162		7
Change resulting from a gradual 100 basis point decrease in the yield curve	(266		)	(10	)	(234		)	(9	)
Change resulting from a gradual 200 basis point increase in the yield curve	451			17		283			11
Change resulting from a gradual 200 basis point decrease in the yield curve	(455		)	(18	)	(442		)	(18	)
Other significant scenarios monitored (reflects projected rate movements on April 1 and January 1):
Change resulting from an immediate 100 basis point increase in the yield curve	382			15		247			10
Change resulting from an immediate 100 basis point decrease in the yield curve	(411		)	(16	)	(381		)	(15	)
Change resulting from an immediate 200 basis point increase in the yield curve	653			25		432			18
Change resulting from an immediate 200 basis point decrease in the yield curve	(631		)	(24	)	(627		)	(25	)

The projections do not take into consideration possible complicating factors such as the effect of changes in interest rates on the credit quality, size and composition of the balance sheet. Therefore, although this provides a reasonable estimate of interest rate sensitivity, actual results will differ from these estimates, possibly by significant amounts.

Capital Risk/Sensitivity of Other Comprehensive Income (Loss)  Large movements of interest rates could directly affect some reported capital balances and ratios. The mark-to-market valuation of available-for-sale securities is recorded on a tax effected basis to accumulated other comprehensive loss. This valuation mark is included in two important accounting based capital ratios: total shareholders' equity to total assets and common equity Tier 1 capital to risk weighted assets. Under the final rule adopting the Basel III regulatory capital reforms, the valuation mark is being phased into common equity Tier 1 capital over five years beginning in 2014. As of March 31, 2015, we had an available-for-sale securities portfolio of approximately $33,096 million with a positive mark-to-market adjustment of $433 million. An increase of 25 basis points in interest rates of all maturities would lower the mark-to-market by approximately $215 million to a net gain of $218 million with the following results on our capital ratios:

	March 31, 2015				December 31, 2014
	Actual		Proforma(1)		Actual		Proforma(1)
Total shareholders' equity to total assets	10.45	%	10.40	%	9.14	%	9.10	%
Common equity Tier 1 capital to risk weighted assets	11.78		11.73		10.33		10.27

⁽¹⁾  Proforma percentages reflect a 25 basis point increase in interest rates.

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Market Risk Management  Market risk is the risk that movements in market factors, including foreign exchange rates and commodity prices, interest rates, credit spreads and equity prices, will reduce our income or the value of our portfolios. Exposure to market risk is separated into two portfolios:

• Trading portfolios comprise positions arising from market-making and warehousing of customer-derived positions.

• Non-trading portfolios comprise positions that primarily arise from the interest rate management of our retail and commercial banking assets and liabilities and financial investments classified as available-for-sale and held-to-maturity.

There have been no material changes to our approach towards market risk management since December 31, 2014. See “Risk Management” in MD&A in our 2014 Form 10-K for a more complete discussion of our approach to market risk.

Value at Risk  VaR is a technique that estimates the potential losses on risk positions as a result of movements in market rates and prices over a specified time horizon and to a given level of confidence. VaR is calculated for all trading positions and non-trading positions which are equally sensitive to market moves regardless of how we capitalize those exposures. VAR is calculated at a 99 percent confidence level for a one-day holding period.

Trading Portfolios  Trading VaR generates from the Global Markets unit of the GB&M business segment. Portfolios are mainly comprised of foreign exchange products, interest rate swaps, credit derivatives, precious metals (i.e. gold, silver, platinum) in both North America and emerging markets.

Daily VaR (trading portfolios), 99% 1 day (in millions):

The following table summarizes our trading VaR for the three months ended March 31, 2015:

	Foreign exchange and commodity		Interest rate		Credit Spread		Portfolio diversification(1)			Total(2)
	(in millions)
At March 31, 2015	$	4	$	3	$	7	$	(8	)	$	6
Three Months Ended March 31, 2015:
Average	5		6		8		(12		)	7
Maximum	6		10		15					10
Minimum	3		3		6					5
At December 31, 2014	$	5	$	3	$	6	$	(8	)	$	6

⁽¹⁾  Portfolio diversification is the market risk dispersion effect of holding a portfolio containing different risk types. It represents the reduction in unsystematic market risk that occurs when combining a number of different risk types, for example, foreign exchange, interest rate and credit spread, together in one portfolio. It is measured as the difference between the sum of the VaR by individual risk type and the combined total VaR. A negative number represents the benefit of portfolio diversification. As the maximum and minimum occur on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit for these measures.

⁽²⁾  The total VaR is non-additive across risk types due to diversification effects. For presentation purposes, portfolio diversification of the VaR for trading portfolios includes VaR-based risk-not-in-VaR.

Backtesting In the first quarter of 2015, we experienced one backtesting exception. This loss exception occurred in January when the Swiss Central Bank surprised the markets and lifted the Swiss Franc currency peg to the Euro. The move of the currency pair was more extreme than any dates used in the historical VaR calculation.

We daily validate the accuracy of our VaR models by back-testing them against hypothetical profit and loss that excludes non-modeled items such as fees, commissions and revenues of intra-day transactions from the actual reported profit and loss. We would expect on average to see two to three profits, and two to three losses, in excess of VaR at the 99 percent confident level over a one-

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year period. The actual number of profits or losses in excess of VaR over this period can therefore be used to gauge how well the models are performing. To ensure a conservative approach to calculating our risk exposures, it is important to note that profits in excess of VaR are only considered when backtesting the accuracy of models and are not used to calculate the VaR numbers used for risk management or capital purposes.

Backtesting of trading VaR against our hypothetical profit and loss (in millions):

Non-trading Portfolios  Non-trading VaR predominantly relates to Balance Sheet Management ("BSM") and represents the potential negative changes in the investment portfolio market value (which includes available for sale and held to maturity assets) and associated hedges. Our investment portfolio holdings are mainly comprised of U.S. Treasuries and U.S. agency mortgage backed securities. Our non-trading VaR exposure is driven by interest rates, mortgage spreads, and asset swap spreads.

The following table summarizes our non-trading VaR for the three months ended March 31, 2015:

	Interest rate		Credit Spread		Portfolio diversification(1)			Total(1)
	(in millions)
At March 31, 2015	$	56	$	26	$	(25	)	$	57
Three Months Ended March 31, 2015:
Average	47		27		(23		)	51
Maximum	65		31					65
Minimum	35		24					38
At December 31, 2014	$	47	$	26	$	(28	)	$	45

⁽¹⁾  Refer to the Trading VaR table above for additional information.

Non-trading VaR also includes the interest rate risk of non-trading financial assets and liabilities held by the global businesses and transferred priced into BSM which has the mandate to centrally manage and hedge it. For a broader discussion on how interest rate risk is managed, please refer to the “Risk Management - Interest Rate Risk Management” in MD&A in our 2014 Form 10-K.

Trading Portfolio MSRs Trading occurs in mortgage banking operations as a result of an economic hedging program intended to offset changes in the value of mortgage servicing rights. Economic hedging may include, for example, forward contracts to sell residential mortgages and derivative instruments used to protect the value of MSRs.

MSRs are assets that represent the present value of net servicing income (servicing fees, ancillary income, escrow and deposit float, net of servicing costs). MSRs are separately recognized upon the sale of the underlying loans or at the time that servicing rights are purchased. MSRs are subject to interest rate risk, in that their value will decline as a result of actual and expected acceleration of prepayment of the underlying loans in a falling interest rate environment.

Interest rate risk is mitigated through an active hedging program that uses trading securities and derivative instruments to offset changes in value of MSRs. Since the hedging program involves trading activity, risk is quantified and managed using a number of risk assessment techniques.

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The following table reflects the modeling techniques, primarily rate shock analyses, used to monitor certain interest rate scenarios for their impact on the economic value of net hedged MSRs:

	March 31, 2015			December 31, 2014
	(in millions)
Projected change in net market value of hedged MSRs portfolio (reflects projected rate movements on April 1 and January 1):
Value of hedged MSRs portfolio	$	141		$	159
Change resulting from an immediate 50 basis point decrease in the yield curve:
Change limit (no worse than)	(10		)	(10		)
Calculated change in net market value	(2		)	—
Change resulting from an immediate 50 basis point increase in the yield curve:
Change limit (no worse than)	(4		)	(4		)
Calculated change in net market value	2			—
Change resulting from an immediate 100 basis point increase in the yield curve:
Change limit (no worse than)	(6		)	(6		)
Calculated change in net market value	4			3

The economic value of the net hedged MSRs portfolio is monitored on a daily basis for interest rate sensitivity. If the economic value declines by more than established limits for one day or one month, various levels of management review, intervention and/or corrective actions are required.

The following table summarizes the frequency distribution of the weekly economic value of the MSR asset during the first quarter of 2015. This includes the change in the market value of the MSR asset net of changes in the market value of the underlying hedging positions used to hedge the asset. The changes in economic value are adjusted for changes in MSR valuation assumptions that were made during the course of the year.

Ranges of mortgage economic value from market risk-related activities	Below $(2)	$(2) to $0	$0 to $2	$2 to $4	Over $4
	(dollars are in millions)
Number of trading weeks market risk-related revenue was within the stated range	—	5	8	—	—

Operational Risk   There have been no material changes to our approach toward operational risk since December 31, 2014.

Compliance Risk  There have been no material changes to our approach toward compliance risk since December 31, 2014.

Fiduciary Risk  There have been no material changes to our approach toward fiduciary risk since December 31, 2014.

Reputational Risk  There have been no material changes to our approach toward reputational risk since December 31, 2014.

Strategic Risk  There have been no material changes to our approach toward strategic risk since December 31, 2014.

Security and Fraud Risk  There have been no material changes to our approach toward security and fraud risk since December 31, 2014.

Model Risk There have been no material changes to our approach to model risk since December 31, 2014.

Pension Risk There have been no material changes to our approach toward pension risk since December 31, 2014.

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CONSOLIDATED AVERAGE BALANCES AND INTEREST RATES

The following table summarizes the quarter-to-date average daily balances of the principal components of assets, liabilities and shareholders' equity together with their respective interest amounts and rates earned or paid, presented on a taxable equivalent basis, which resulted in a $4 million increase to interest income on securities in each of the three month periods ended March 31, 2015 and 2014, respectively. Net interest margin is calculated by dividing net interest income by the average interest earning assets from which interest income is earned. Loan interest for the three months ended March 31, 2015 and 2014 included fees of $15 million and $19 million, respectively.

Three Months Ended March 31,	2015							2014
	Average Balance			Interest		Rate(1)		Average Balance			Interest		Rate(1)
	(dollars are in millions)
Assets
Interest bearing deposits with banks	$	30,714		$	19	.26	%	$	21,633		$	14	.26	%
Federal funds sold and securities purchased under resale agreements	1,873			3		.60		1,247			2		.61
Trading securities	14,442			95		2.68		12,581			48		1.56
Securities	47,494			204		1.74		56,110			211		1.53
Loans:
Commercial	60,336			320		2.15		49,467			287		2.36
Consumer:
Residential mortgages	16,900			140		3.37		15,957			135		3.43
Home equity mortgages	1,746			14		3.37		1,971			17		3.45
Credit cards	690			19		10.98		698			17		10.10
Other consumer	522			8		5.61		555			8		5.12
Total consumer	19,858			181		3.69		19,181			177		3.73
Total loans	80,194			501		2.53		68,648			464		2.74
Other	3,280			15		1.73		3,560			10		1.19
Total interest earning assets	177,997			$	837	1.91	%	163,779			$	749	1.86	%
Allowance for credit losses	(690		)					(591		)
Cash and due from banks	874							960
Other assets	16,732							21,240
Total assets	$	194,913						$	185,388
Liabilities and Shareholders’ Equity
Deposits in domestic offices:
Savings deposits	$	43,049		$	14	.14	%	$	43,002		$	13	.12	%
Other time deposits	31,447			30		.38		19,027			20		.43
Deposits in foreign offices:
Foreign banks deposits	6,930			1		.03		8,320			1		.03
Other interest bearing deposits	3,497			1		.14		5,227			1		.13
Total interest bearing deposits	84,923			46		.22		75,576			35		.19
Short-term borrowings	16,960			11		.25		26,213			6		.10
Long-term debt	30,637			167		2.22		22,815			170		3.02
Total interest bearing deposits and debt	132,520			224		.68		124,604			211		.69
Tax liabilities and other	820			3		1.71		1,160			15		5.29
Total interest bearing liabilities	133,340			227		.69		125,764			226		.73
Net interest income/Interest rate spread				$	610	1.22	%				$	523	1.13	%
Noninterest bearing deposits	30,285							30,177
Other liabilities	14,016							12,749
Total shareholders’ equity	17,272							16,698
Total liabilities and shareholders’ equity	$	194,913						$	185,388
Net interest margin on average earning assets						1.39	%						1.30	%
Net interest income to average total assets						1.27	%						1.15	%

⁽¹⁾  Rates are calculated on amounts that have not been rounded to the nearest million.

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Item 3.    Quantitative and Qualitative Disclosures about Market Risk

Information required by this Item is included within Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Risk Management section under the captions "Interest Rate Risk" and "Market Risk".

Item 4.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures We maintain a system of internal and disclosure controls and procedures designed to ensure that information required to be disclosed by HSBC USA in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported on a timely basis. Our Board of Directors, operating through its Audit Committee, which is composed entirely of independent non-executive directors, provides oversight to our financial reporting process.

We conducted an evaluation, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report so as to alert them in a timely fashion to material information required to be disclosed in reports we file under the Exchange Act.

Changes in Internal Control over Financial Reporting There has been no change in our internal control over financial reporting that occurred during the quarter ended March 31, 2015 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II

Item 1. Legal Proceedings

See Note 19, “Litigation and Regulatory Matters,” in the accompanying consolidated financial statements beginning on page 71 for our legal proceedings disclosure, which is incorporated herein by reference.

Item 5.    Other Information

Disclosures pursuant to Section 13(r) of the Securities Exchange Act Section 13(r) of the Securities Exchange Act requires each issuer registered with the SEC to disclose in its annual or quarterly reports whether it or any of its affiliates have knowingly engaged in specified activities or transactions with persons or entities targeted by U.S. sanctions programs relating to Iran, terrorism, or the proliferation of weapons of mass destruction, even if those activities are not prohibited by U.S. law and are conducted outside the U.S. by non-U.S. affiliates in compliance with local laws and regulations.

In order to comply with this requirement, HSBC Holdings plc (together with its affiliates, “HSBC Group”) has requested relevant information from its affiliates globally. During the period covered by this Form 10-Q, HSBC USA Inc. did not engage in any activities or transactions requiring disclosure pursuant to Section 13(r) other than those activities related to frozen accounts and transactions permitted under relevant U.S. sanction programs described under “Frozen Accounts and Transactions” below. The following activities conducted by our affiliates are disclosed in response to Section 13(r):

Loans in repayment Between 2001 and 2005, the Project and Export Finance division of the HSBC Group arranged or participated in a portfolio of loans to Iranian energy companies and banks. All of these loans were guaranteed by European and Asian export credit agencies, and they have varied maturity dates with final maturity in 2018. For those loans that remain outstanding, the HSBC Group continues to seek repayment in accordance with its obligations to the supporting export credit agencies and, in all cases, with appropriate regulatory approvals. Details of these loans follow.

At March 31, 2015, the HSBC Group had 11 loans outstanding to an Iranian petrochemical company. These loans are supported by the official Export Credit Agencies of the following countries: the United Kingdom, France, Germany, Spain, The Netherlands, South Korea and Japan. The HSBC Group continues to seek repayments from the company under the existing loans in accordance with the original maturity profiles. All repayments made by the Iranian company have received a license or an authorization from relevant authorities.

Bank Melli and Bank Saderat acted as sub-participants in three of the aforementioned loans. The repayments due to these banks under the loan agreements were paid into frozen accounts under licenses or authorizations from relevant European governments.

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HSBC USA Inc.

The HSBC Group held a sub-participation in a loan provided by another international bank to Bank Tejarat with a guarantee from the Government of Iran. This sub-participation was supported by the Italian Export Credit Agency. The facility matured in 2014 and the final claim for non-payment was paid by the Italian Export Credit Agency during the first quarter of 2015.

Licenses and relevant authorizations have been obtained from the competent authorities of the European Union with respect to the above transactions.

Estimated gross revenue to the HSBC Group generated by these loans in repayment for the first quarter of 2015, which includes interest and fees, was approximately $178,000, and net estimated profit was approximately $129,000. While the HSBC Group intends to continue to seek repayment under the existing loans, it does not intend to extend any new loans.

Legacy contractual obligations related to guarantees Between 1996 and 2007, the HSBC Group provided guarantees to a number of its non-Iranian customers in Europe and the Middle East for various business activities in Iran. In a number of cases, the HSBC Group issued counter indemnities in support of guarantees issued by Iranian banks as the Iranian beneficiaries of the guarantees required that they be backed directly by Iranian banks. The Iranian banks to which the HSBC Group provided counter indemnities included Bank Tejarat, Bank Melli, and the Bank of Industry and Mine.

The HSBC Group has worked with relevant regulatory authorities to obtain licenses where required and ensure compliance with laws and regulations while seeking to cancel the guarantees and counter indemnities. None were canceled during the first quarter of 2015 and approximately 20 remain outstanding.

There was no measurable gross revenue to the HSBC Group for the first quarter of 2015 under those guarantees. The HSBC Group does not allocate direct costs to fees and commissions and, therefore, has not disclosed a separate net profit measure. The HSBC Group is seeking to cancel all relevant guarantees and does not intend to provide any new guarantees involving Iran.

Other relationships with Iranian banksActivity related to U.S. -sanctioned Iranian banks not covered elsewhere in this disclosure includes the following:

Ÿ The HSBC Group maintains several frozen accounts in the U.K. for an Iranian-owned, U.K.-regulated financial institution. In April 2007, the U.K. government issued a license to allow the HSBC Group to handle certain transactions (operational payments and settlement of pre-sanction transactions) for this institution. In December 2013, the U.K. government issued a new license allowing the HSBC Group to deposit certain check payments. There was some licensed activity in the first quarter of 2015. Estimated gross revenue to the HSBC Group in the first quarter of 2015 for this financial institution, which includes fees and/or commissions, was approximately $(57,700) and the estimated net profit was approximately $36,900. This customer relationship has generated negative revenue to the HSBC Group, given a negative interest rate assessed by the European Central Bank. The HSBC Group is currently paying the negative interest rate on behalf of its customers. In the first quarter of 2015, the HSBC Group applied for a license from the U.K. government for the option to collect the negative interest rate from this institution.

Ÿ The HSBC Group acts as the trustee and administrator for a pension scheme involving two employees of a U.S.-sanctioned Iranian bank in Hong Kong. Under the rules of these schemes, the HSBC Group accepts contributions from the Iranian bank each month and allocates the funds into the pension accounts of the Iranian bank employees. The HSBC Group runs and operates the pension scheme in accordance with Hong Kong laws and regulations. Estimated gross revenue to the HSBC Group in the first quarter of 2015 generated by this pension scheme, which includes fees and/or commission, was approximately $790. Fees are generally included in the price of the underlying investment funds. Therefore, the HSBC Group has not disclosed a separate net profit measure for this pension scheme.

The HSBC Group intends to continue to wind down this Iranian bank-related activity and not enter into any new such activity.

Activity related to U.S. Executive Order 13224 The HSBC Group maintains a frozen personal account for an individual sanctioned under Executive Order 13224, and by the U.K. and the U.N. Security Council. Activity on this account in the first quarter of 2015 was permitted by a license issued by the U.K. There was no measurable gross revenue or net profits generated in the first quarter of 2015.

Other activityThe HSBC Group holds a lease of branch premises in London which it entered into in 2005 and is due to expire in 2020. The landlord of the premises is owned by the Iranian government and is a specially designated national under U.S. sanctions programs. The HSBC Group has exercised a break clause in the lease and is in the process of exiting the property. The relationship will be terminated in 2015 and the HSBC Group closed the branch in the third quarter of 2014. There was no gross revenue or net profit to HSBC in the first quarter of 2015.

The HSBC Group maintains an account for a corporate customer in Armenia for whom it received funds from an account at Bank Mellat CJSC Armenia for the sale of computer equipment. There was no gross revenue or net profit to HSBC in the first quarter of 2015.

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HSBC USA Inc.

The HSBC Group maintains an account for a corporate customer in Oman for whom it received a check payment drawn on an account at Bank Melli in Oman for the sale of carpet-related products and services. There was no gross revenue or net profit to HSBC in the first quarter of 2015.

Frozen accounts and transactionsThe HSBC Group and HSBC Bank USA, National Association ("HSBC Bank USA") maintain several accounts that are frozen under relevant sanctions programs and on which no activity, except as licensed or otherwise authorized, took place during the first quarter of 2015. In the first quarter of 2015, the HSBC Group and HSBC Bank USA also froze payments where required under relevant sanctions programs. There was no gross revenue or net profit to the HSBC Group or HSBC Bank USA.

Item 6. Exhibits

3(i)	Articles of Incorporation and amendments and supplements thereto (incorporated by reference to Exhibit 3(a) to HSBC USA Inc.’s Annual Report on Form 10-K for the year ended December 31, 1999, Exhibit 3 to HSBC USA Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2000, Exhibits 3.2 and 3.3 to HSBC USA Inc.’s Current Report on Form 8-K filed April 4, 2005; Exhibit 3.2 to HSBC USA Inc.’s Current Report on Form 8-K filed October 14, 2005 and Exhibit 3.2 to HSBC USA Inc.’s Current Report on Form 8-K filed May 22, 2006).
3(ii)	Bylaws of HSBC USA Inc., as Amended and Restated effective April 29, 2015 (incorporated by reference to Exhibit 3.2 to HSBC USA Inc.'s Current Report on Form 8-K filed May 1, 2015).
12	Computation of Ratio of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Stock Dividends.
31	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document(1)
101.SCH	XBRL Taxonomy Extension Schema Document(1)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document(1)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document(1)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document(1)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document(1)

⁽¹⁾  Pursuant to Rule 405 of Regulation S-T, includes the following financial information included in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, formatted in eXtensible Business Reporting Language ("XBRL") interactive data files: (i) the Consolidated Statement of Income for the three months ended March 31, 2015 and 2014, (ii) the Consolidated Statement of Comprehensive Income for the three months ended March 31, 2015 and 2014, (iii) the Consolidated Balance Sheet as of March 31, 2015 and December 31, 2014, (iv) the Consolidated Statement of Changes in Shareholders' Equity for the three months ended March 31, 2015 and 2014, (v) the Consolidated Statement of Cash Flows for the three months ended March 31, 2015 and 2014, and (vi) the Notes to Consolidated Financial Statements.

126

HSBC USA Inc.

Index

Assets:	Equity securities available-for-sale 11
by business segment 44	Estimates and assumptions 9
consolidated average balances 123	Executive overview 77
fair value measurements 57	Fair value measurements:
nonperforming 19, 24, 26, 103	assets and liabilities recorded at fair value on a recurring basis 59
trading 10, 83	assets and liabilities recorded at fair value on a non-recurring basis 66
Asset-backed commercial paper conduits 48	control over valuation process 113
Asset-backed securities 11, 59, 69, 115	financial instruments 57
Balance sheet:	hierarchy 55, 113
consolidated 5	transfers into/out of level one and two 61
consolidated average balances 123	transfers into/out of level two and three 61
review 80	valuation techniques 67
Basel I 107	Fiduciary risk 116, 122
Basel II 108	Financial assets:
Basel III 46, 107	designated at fair value 37
Basis of reporting 79	reclassification under IFRSs 45, 79
Business:	Financial highlights metrics 77
consolidated performance review 77	Financial liabilities:
Capital:	designated at fair value 37
2015 funding strategy 110	fair value of financial liabilities 57
common equity movements 107	Forward looking statements 75
consolidated statement of changes 7	Funding 110
regulatory capital 46	Gain on instruments designated at fair value and related derivatives 38
selected capital ratios 46, 78, 107, 119	Gains (losses) from securities 15, 87
Cash flow (consolidated) 8	Global Banking and Markets 45, 94
Cautionary statement regarding forward-looking statements 75	Geographic concentration of receivables 105
Collateral — pledged assets 53	Goodwill 30
Collateralized debt obligations 69, 115	Guarantee arrangements 49
Commercial banking segment results (IFRSs) 45, 94	Impairment:
Compliance risk 116, 122	available-for-sale securities 14
Controls and procedures 124	credit losses 27, 86
Credit card fees 87	nonperforming loans 19, 24, 26, 103
Credit quality 98	impaired loans 20, 23
Credit risk:	Income (loss) from financial instruments designated at fair value, net 38
adjustment 55	Income tax expenses 3, 92
component of fair value option 38	Intangible assets 29
concentration 26, 104	Interest rate risk 116, 119
exposure 116	Internal control 124
management 116	Key performance indicators 77
related contingent features 35	Legal proceedings 124
related arrangements 49	Liabilities:
Current environment 77	commitments, lines of credit 111
Deferred tax assets 92	deposits 84, 107
Deposits 84, 107	financial liabilities designated at fair value 37
Derivatives:	trading 10, 83
cash flow hedges 33	long-term debt 41, 57, 84, 107
fair value hedges 32	short-term borrowings 41, 57, 84, 107
notional value 36	Liquidity and capital resources 106
trading and other 34	Liquidity risk 116, 117
Equity:	Litigation and regulatory matters 71
consolidated statement of changes 7
ratios 46, 78, 107, 119

127

HSBC USA Inc.

Loans:	Reputational risk 116, 122
by category 17, 81	Results of operations 85
by charge-off (net) 27, 102	Residential Mortgage Revenue 89
by delinquency 25, 101	Retail banking and wealth management segment results (IFRSs) 45, 93
criticized assets 24	Risk elements in the loan portfolio 104
geographic concentration 105	Risk management:
held for sale 28	credit 116
impaired 20	compliance 116, 122
nonperforming 19, 24, 26, 103	fiduciary 116, 122
overall review 80	interest rate 116, 119
risk concentration 26, 104	liquidity 116, 117
troubled debt restructures 20	market 116, 120
Loan impairment charges — see Provision for credit losses	model 116, 122
Loan-to-deposits ratio 78	operational 116, 122
Loan to value (LTV) 81	pension 116, 122
Market risk 116	reputational 116, 122
Market turmoil:	security and fraud risk 116, 122
exposures 120	strategic 116, 122
impact on liquidity risk 106	Securities:
Monoline insurers 14, 114	amortized cost 11
Mortgage lending products 17, 81	fair value 11
Mortgage servicing rights 29	impairment 14
Net interest income 85	maturity analysis 16
New accounting pronouncements 74	Segment results - IFRSs basis:
Off balance sheet arrangements 111	retail banking and wealth management 45, 93
Operating expenses 90	commercial banking 45, 94
Operational risk 116, 122	global banking and markets 45, 94
Other revenue 87	private banking 45, 96
Other segment results (IFRSs) 45, 97	other 45, 97
Pension and other postretirement benefits 40	overall summary 45, 93
Performance, developments and trends 77	Selected financial data 77
Pledged assets 53	Sensitivity:
Private banking segment results (IFRSs) 45, 96	projected net interest income 119
Profit (loss) before tax:	Statement of changes in shareholders’ equity 7
by segment — IFRSs 45	Statement of changes in comprehensive income 4
consolidated 3	Statement of income 3
Provision for credit losses 27, 86	Strategic risk 116, 122
Ratios:	Stress testing 106, 108
capital 46, 78, 107, 119	Table of contents 2
charge-off (net) 77, 99	Tax expense 3, 92
credit loss reserve related 99	Trading:
delinquency 101	assets 10, 83
earnings to fixed charges — Exhibit 12	derivatives 10, 83
efficiency 77, 91	liabilities 10, 83
Reconciliation of U.S. GAAP results to IFRSs 79	portfolios 10
Refreshed loan-to-value 81	Trading revenue (net) 87, 88
Regulation 46, 107, 124	Troubled debt restructures 20
Related party transactions 41	Value at risk 120
	Variable interest entities 47

128

HSBC USA Inc.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, HSBC USA Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 5, 2015

HSBC USA INC.
By:	/s/ MARK ZAESKE
	Mark Zaeske
	Senior Executive Vice President and
	Chief Financial Officer

129

HSBC USA Inc.

Exhibit Index

3(i)	Articles of Incorporation and amendments and supplements thereto (incorporated by reference to Exhibit 3(a) to HSBC USA Inc.’s Annual Report on Form 10-K for the year ended December 31, 1999, Exhibit 3 to HSBC USA Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2000, Exhibits 3.2 and 3.3 to HSBC USA Inc.’s Current Report on Form 8-K filed April 4, 2005; Exhibit 3.2 to HSBC USA Inc.’s Current Report on Form 8-K filed October 14, 2005 and Exhibit 3.2 to HSBC USA Inc.’s Current Report on Form 8-K filed May 22, 2006).
3(ii)	Bylaws of HSBC USA Inc., as Amended and Restated effective April 29, 2015 (incorporated by reference to Exhibit 3.2 to HSBC USA Inc.'s Current Report on Form 8-K filed May 1, 2015).
12	Computation of Ratio of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Stock Dividends.
31	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document(1)
101.SCH	XBRL Taxonomy Extension Schema Document(1)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document(1)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document(1)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document(1)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document(1)

⁽¹⁾  Pursuant to Rule 405 of Regulation S-T, includes the following financial information included in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, formatted in eXtensible Business Reporting Language ("XBRL") interactive data files: (i) the Consolidated Statement of Income for the three months ended March 31, 2015 and 2014, (ii) the Consolidated Statement of Comprehensive Income for the three months ended March 31, 2015 and 2014, (iii) the Consolidated Balance Sheet as of March 31, 2015 and December 31, 2014, (iv) the Consolidated Statement of Changes in Shareholders' Equity for the three months ended March 31, 2015 and 2014, (v) the Consolidated Statement of Cash Flows for the three months ended March 31, 2015 and 2014, and (vi) the Notes to Consolidated Financial Statements.

130

EX-12

EXHIBIT 12

HSBC USA INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND

EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Three Months Ended March 31,
	2015		2014
	(dollars are in millions)
Ratios excluding interest on deposits:
Income from continuing operations	$	164	$	104
Income tax expense (benefit)	76		149
Less: Undistributed equity earnings	—		—
Fixed charges:
Interest on:
Borrowed funds	11		9
Long-term debt	167		170
Others	3		12
One third of rents, net of income from subleases	9		7
Total fixed charges, excluding interest on deposits	190		198
Earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings	430		451
Ratio of earnings to fixed charges	2.26		2.28
Total preferred stock dividend factor(1)	$	30	$	30
Fixed charges, including the preferred stock dividend factor	$	220	$	228
Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends	1.95		1.98
Ratios including interest on deposits:
Total fixed charges, excluding interest on deposits	$	190	$	198
Add: Interest on deposits	46		35
Total fixed charges, including interest on deposits	$	236	$	233
Earnings from continuing operations before taxes and fixed charges, net of undistributed equity earnings	$	430	$	451
Add: Interest on deposits	46		35
Total	$	476	$	486
Ratio of earnings to fixed charges	2.02		2.09
Fixed charges, including the preferred stock dividend factor	$	220	$	228
Add: Interest on deposits	46		35
Fixed charges, including the preferred stock dividend factor and interest on deposits	$	266	$	263
Ratio of earnings from continuing operations to combined fixed charges and preferred stock dividends	1.79		1.85

⁽¹⁾  Preferred stock dividends grossed up to their pretax equivalents.

EX-31

EXHIBIT 31

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

Certification of Chief Executive Officer

I, Patrick J. Burke, Chairman of the Board, President and Chief Executive Officer of HSBC USA Inc., certify that:

1. I have reviewed this report on Form 10-Q of HSBC USA Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2015

/s/ PATRICK J. BURKE

Patrick J. Burke

Chairman of the Board, President

and Chief Executive Officer

Certification of Chief Financial Officer

I, Mark Zaeske, Senior Executive Vice President and Chief Financial Officer of HSBC USA Inc., certify that:

1. I have reviewed this report on Form 10-Q of HSBC USA Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2015

/s/ MARK ZAESKE

Mark Zaeske

Senior Executive Vice President and

Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

The certification set forth below is being submitted in connection with the HSBC USA Inc. (the “Company”) Quarterly Report on Form 10-Q for the period ending March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”) for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code.

I, Patrick J. Burke, Chairman of the Board, President and Chief Executive Officer of the Company, certify that:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HSBC USA Inc.

Date: May 5, 2015

/s/ PATRICK J. BURKE

Patrick J. Burke

Chairman of the Board, President

and Chief Executive Officer

This certification accompanies each Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by HSBC USA Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

The signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to HSBC USA Inc. and will be retained by HSBC USA Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Certification pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

The certification set forth below is being submitted in connection with the HSBC USA Inc. (the “Company”) Quarterly Report on Form 10-Q for the period ending March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”) for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code.

I, Mark Zaeske, Senior Executive Vice President and Chief Financial Officer of the Company, certify that:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of HSBC USA Inc.

Date: May 5, 2015

/s/ MARK ZAESKE

Mark Zaeske

Senior Executive Vice President and

Chief Financial Officer

This certification accompanies each Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by HSBC USA Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

The signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to HSBC USA Inc. and will be retained by HSBC USA Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Pensions and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2015

HSBC North America Pension Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]

Components of Net Periodic Benefit Cost

The components of pension expense for the defined benefit pension plan recorded in our consolidated statement of income and shown in the table below reflect the portion of pension expense of the combined HSBC North America Pension Plan (either the "HBSC North America Pension Plan" or the "Plan") which has been allocated to us.

Three Months Ended March 31,	2015			2014
	(in millions)
Service cost – benefits earned during the period	$	2		$	1
Interest cost on projected benefit obligation	17			18
Expected return on plan assets	(23		)	(20		)
Amortization of net actuarial loss	9			9
Pension expense	$	5		$	8

Postretirement Plans Other Than Pensions [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost for our postretirement plans other than pension are as follows:

Three Months Ended March 31,	2015		2014
	(in millions)
Interest cost on accumulated benefit obligation	1		1
Net periodic postretirement benefit cost	$	1	$	1

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Guarantee Arrangements and Pledged Assets and Collateral - Summary of Credit Ratings of Credit Risk Related Guarantees (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Dec. 31, 2014
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	$ 127,512		$ 128,894
Credit Ratings of the Obligors or the Transactions, Total	124,802
Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	115,685
Single name credit default swap [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Average Life in years	2 years 8 months 2 days	[1]
Credit Ratings of the Obligors or the Transactions	92,098	[1]
Structured CDS [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Average Life in years	1 year 9 months 12 days	[1]
Credit Ratings of the Obligors or the Transactions	6,763	[1]
Index credit derivatives [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Average Life in years	2 years 2 months 7 days	[1]
Credit Ratings of the Obligors or the Transactions	13,128	[1]
Total return swaps [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Average Life in years	2 years 7 months 29 days	[1]
Credit Ratings of the Obligors or the Transactions	3,696	[1]
Standby Letters of Credit [Member]
Credit Derivatives [Line Items]
Average Life in years	1 year 1 month 13 days	[2]
Credit Ratings of the Obligors or the Transactions	9,117	[2]
External Credit Rating, Investment Grade [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions, Total	93,926
External Credit Rating, Investment Grade [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	87,209
External Credit Rating, Investment Grade [Member] | Single name credit default swap [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	72,959	[1]
External Credit Rating, Investment Grade [Member] | Structured CDS [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	6,111	[1]
External Credit Rating, Investment Grade [Member] | Index credit derivatives [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	4,840	[1]
External Credit Rating, Investment Grade [Member] | Total return swaps [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	3,299	[1]
External Credit Rating, Investment Grade [Member] | Standby Letters of Credit [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	6,717	[2]
External Credit Rating, Non Investment Grade [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions, Total	30,876
External Credit Rating, Non Investment Grade [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	28,476
External Credit Rating, Non Investment Grade [Member] | Single name credit default swap [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	19,139	[1]
External Credit Rating, Non Investment Grade [Member] | Structured CDS [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	652	[1]
External Credit Rating, Non Investment Grade [Member] | Index credit derivatives [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	8,288	[1]
External Credit Rating, Non Investment Grade [Member] | Total return swaps [Member] | Sell Protection Credit Derivatives [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	397	[1]
External Credit Rating, Non Investment Grade [Member] | Standby Letters of Credit [Member]
Credit Derivatives [Line Items]
Credit Ratings of the Obligors or the Transactions	$ 2,400	[2]

[1] The credit ratings in the table represent external credit ratings for classification as investment grade and non-investment grade.

[2] External ratings for most of the obligors are not available. Presented above are the internal credit ratings which are developed using similar methodologies and rating scale equivalent to external credit ratings for purposes of classification as investment grade and non-investment grade.

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Loans - Components of Loans (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 81,458		$ 77,741		$ 68,897
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total commercial	61,647		58,087
Total loans	61,647		58,087
Commercial Loans [Member] | Construction and Other Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total commercial	10,901		10,300
Total loans	10,901		10,300		9,165
Commercial Loans [Member] | Business and Corporate Banking [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total commercial	19,251		17,819
Total loans	19,251		17,819		15,698
Commercial Loans [Member] | Global Banking [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total commercial	28,029	[1]	26,387	[1]
Total loans	28,029		26,387		21,979
Commercial Loans [Member] | Other Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total commercial	3,466		3,581
Total loans	3,466		3,581		3,051
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	19,811		19,654
Total loans	19,811		19,654
Consumer Loans [Member] | Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	16,991		16,661
Total loans	16,991		16,661		15,900
Consumer Loans [Member] | Home Equity Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	1,716		1,784
Total loans	1,716		1,784		1,938
Consumer Loans [Member] | Credit Cards [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	680		720
Total loans	680		720		683
Consumer Loans [Member] | Other consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total consumer	424		489
Total loans	$ 424		$ 489		$ 483

[1] Represents large multinational firms including globally focused U.S. corporate and financial institutions and U.S. dollar lending to multinational banking customers managed by HSBC on a global basis. Also includes loans to HSBC affiliates which totaled $5,016 million and $4,821 million at March 31, 2015 and December 31, 2014, respectively. See Note 13, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.

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Securities - Amortized Cost and Fair Value of Asset Backed Securities (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	$ 32,663		$ 29,654
Unrealized Gains, Available-for-sale securities	571		621
Unrealized Losses, Available-for-sale securities	(138)		(135)
Fair Value, Available-for-sale securities	33,096		30,140
Amortized Cost, Held-to-Maturity Securities	14,015		13,469
Unrealized Gains, Held-to-maturity securities	338		229
Unrealized Losses, Held-to-maturity securities	(3)		(3)
Held-to-maturity Securities, Fair Value	14,350		13,695
U.S. Treasury [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	10,720		11,793
Unrealized Gains, Available-for-sale securities	235		276
Unrealized Losses, Available-for-sale securities	(56)		(58)
Fair Value, Available-for-sale securities	10,899		12,011
Mortgage-backed securities [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	670	[1]	520	[1]
Unrealized Gains, Available-for-sale securities	8	[1]	5	[1]
Unrealized Losses, Available-for-sale securities	(1)	[1]	(1)	[1]
Fair Value, Available-for-sale securities	677	[1]	524	[1]
Amortized Cost, Held-to-Maturity Securities	5,280	[2]	4,868	[2]
Unrealized Gains, Held-to-maturity securities	177	[2]	120	[2]
Unrealized Losses, Held-to-maturity securities	(1)	[2]	(1)	[2]
Held-to-maturity Securities, Fair Value	5,456	[2]	4,987	[2]
Collateralized mortgage obligations [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	35	[1]	35	[1]
Unrealized Gains, Available-for-sale securities	0	[1]	0	[1]
Unrealized Losses, Available-for-sale securities	0	[1]	0	[1]
Fair Value, Available-for-sale securities	35	[1]	35	[1]
Direct agency obligations [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	4,143	[1]	3,995	[1]
Unrealized Gains, Available-for-sale securities	206	[1]	217	[1]
Unrealized Losses, Available-for-sale securities	(6)	[1]	(6)	[1]
Fair Value, Available-for-sale securities	4,343	[1]	4,206	[1]
Mortgage-backed securities, issued or guaranteed by US Government agency [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	11,457		7,985
Unrealized Gains, Available-for-sale securities	93		101
Unrealized Losses, Available-for-sale securities	(26)		(27)
Fair Value, Available-for-sale securities	11,524		8,059
Amortized Cost, Held-to-Maturity Securities	3,482		3,700
Unrealized Gains, Held-to-maturity securities	59		53
Unrealized Losses, Held-to-maturity securities	0		(1)
Held-to-maturity Securities, Fair Value	3,541		3,752
Collateralized mortgage obligations, issued or guaranteed by US Government agency [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	378		329
Unrealized Gains, Available-for-sale securities	7		3
Unrealized Losses, Available-for-sale securities	(1)		(2)
Fair Value, Available-for-sale securities	384		330
Amortized Cost, Held-to-Maturity Securities	5,222		4,867
Unrealized Gains, Held-to-maturity securities	100		54
Unrealized Losses, Held-to-maturity securities	(2)		(1)
Held-to-maturity Securities, Fair Value	5,320		4,920
Obligations of U.S. states and political subdivision [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	742		661
Unrealized Gains, Available-for-sale securities	10		10
Unrealized Losses, Available-for-sale securities	(4)		(4)
Fair Value, Available-for-sale securities	748		667
Amortized Cost, Held-to-Maturity Securities	21		23
Unrealized Gains, Held-to-maturity securities	1		1
Unrealized Losses, Held-to-maturity securities	0		0
Held-to-maturity Securities, Fair Value	22		24
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Held-to-Maturity Securities	10		11
Unrealized Gains, Held-to-maturity securities	1		1
Unrealized Losses, Held-to-maturity securities	0		0
Held-to-maturity Securities, Fair Value	11		12
Commercial Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	29		43
Unrealized Gains, Available-for-sale securities	0		0
Unrealized Losses, Available-for-sale securities	0		0
Fair Value, Available-for-sale securities	29		43
Home Equity Backed Securities [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	94		97
Unrealized Gains, Available-for-sale securities	0		0
Unrealized Losses, Available-for-sale securities	(9)		(8)
Fair Value, Available-for-sale securities	85		89
Other securities [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	112		110
Unrealized Gains, Available-for-sale securities	0		0
Unrealized Losses, Available-for-sale securities	(18)		(16)
Fair Value, Available-for-sale securities	94		94
Foreign debt securities [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	4,121	[3]	3,921	[3]
Unrealized Gains, Available-for-sale securities	9	[3]	6	[3]
Unrealized Losses, Available-for-sale securities	(17)	[3]	(12)	[3]
Fair Value, Available-for-sale securities	4,113	[3]	3,915	[3]
Foreign debt securities [Member] | Foreign Government [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	1,053		689
Equity securities [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	162		165
Unrealized Gains, Available-for-sale securities	3		3
Unrealized Losses, Available-for-sale securities	0		(1)
Fair Value, Available-for-sale securities	165		167
US Government sponsored enterprises [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	672		521
Amortized Cost, Held-to-Maturity Securities	3,539		3,185
US Government sponsored enterprises [Member] | Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member]
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items]
Amortized Cost, Available-for-sale securities	33		34
Amortized Cost, Held-to-Maturity Securities	$ 1,741		$ 1,683

[1] Includes securities at amortized cost of $672 million and $521 million issued or guaranteed by FNMA at March 31, 2015 and December 31, 2014, respectively, and $33 million and $34 million issued or guaranteed by the Federal Home Loan Mortgage Corporation ("FHLMC") at March 31, 2015 and December 31, 2014, respectively.

[2] Includes securities at amortized cost of $3,539 million and $3,185 million issued or guaranteed by FNMA at March 31, 2015 and December 31, 2014, respectively, and $1,741 million and $1,683 million issued and guaranteed by FHLMC at March 31, 2015 and December 31, 2014, respectively.

[3] At March 31, 2015 and December 31, 2014, foreign debt securities consisted of $1,053 million and $689 million, respectively, of securities fully backed by foreign governments. The remainder of foreign debt securities represents public sector entity, bank or corporate debt.

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Fair Value Measurements - Quantitative Information about Recurring Fair Value Measurement of Assets and Liabilities Classified as Level 3 (Detail) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015		Dec. 31, 2014
Level 3 [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Assets, Fair Value Disclosure, Recurring	3,705,000,000		3,752,000,000
Liabilities, Fair Value Disclosure, Recurring	(2,776,000,000)		(2,863,000,000)
Collateralized debt obligations [Member] | Level 3 [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Assets, Fair Value Disclosure, Recurring	254,000,000		253,000,000
Collateralized debt obligations [Member] | Recurring [Member] | Minimum [Member] | Broker quotes or consensus pricing and, where applicable, discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Prepayment Rate	1.00%		1.00%
Fair Value Inputs, Probability of Default	6.00%		6.00%
Fair Value Inputs, Loss Severity	90.00%		90.00%
Collateralized debt obligations [Member] | Recurring [Member] | Maximum [Member] | Broker quotes or consensus pricing and, where applicable, discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Prepayment Rate	6.00%		6.00%
Fair Value Inputs, Probability of Default	7.00%		7.00%
Fair Value Inputs, Loss Severity	91.00%		91.00%
Corporate and other domestic [Member] | Level 3 [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Assets, Fair Value Disclosure, Recurring	2,848,000,000		2,840,000,000
Corporate and other domestic [Member] | Recurring [Member] | Minimum [Member] | Discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Spread Volatility on Collateral Assets	1.00%		2.00%
Corporate and other domestic [Member] | Recurring [Member] | Maximum [Member] | Discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Spread Volatility on Collateral Assets	4.00%		4.00%
Corporate and other domestic [Member] | Recurring [Member] | Weighted Average [Member] | Discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Correlation Between Insurance Claim Shortfall and Collateral Value	80.00%		80.00%
Government debt securities issued by foreign entities [Member] | Recurring [Member] | Minimum [Member] | Discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Correlations of Default Among a Portfolio of Credit Names of Embedded Credit Derivatives	0.00%		36.00%
Government debt securities issued by foreign entities [Member] | Recurring [Member] | Maximum [Member] | Discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Correlations of Default Among a Portfolio of Credit Names of Embedded Credit Derivatives	0.00%		63.00%
Credit contracts [Member] | Level 3 [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Assets, Fair Value Disclosure, Recurring	192,000,000		210,000,000
Credit contracts [Member] | Recurring [Member] | Minimum [Member] | Option pricing model [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Correlation of Defaults of Portfolio of Reference Credit Names	49.00%		52.00%
Fair Value Inputs, Issuer by Issuer Correlation of Defaults	82.00%		82.00%
Credit contracts [Member] | Recurring [Member] | Maximum [Member] | Option pricing model [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Correlation of Defaults of Portfolio of Reference Credit Names	52.00%		57.00%
Fair Value Inputs, Issuer by Issuer Correlation of Defaults	83.00%		83.00%
Equity contracts [Member] | Level 3 [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Assets, Fair Value Disclosure, Recurring	43,000,000	[1]	42,000,000
Equity contracts [Member] | Recurring [Member] | Minimum [Member] | Option pricing model [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Equity/Equity Index Volatility	13.00%	[1]	11.00%	[1]
Fair Value Inputs, Equity/Equity and Equity/Index Correlation	47.00%	[1]	47.00%	[1]
Equity contracts [Member] | Recurring [Member] | Maximum [Member] | Option pricing model [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Equity/Equity Index Volatility	65.00%	[1]	60.00%	[1]
Fair Value Inputs, Equity/Equity and Equity/Index Correlation	59.00%	[1]	73.00%	[1]
Foreign exchange contracts [Member] | Level 3 [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Assets, Fair Value Disclosure, Recurring	0	[1]	0	[1]
Foreign exchange contracts [Member] | Recurring [Member] | Minimum [Member] | Option pricing model [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Implied Volatility Currency Pairs	17.00%	[1]	10.00%	[1]
Foreign exchange contracts [Member] | Recurring [Member] | Maximum [Member] | Option pricing model [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Implied Volatility Currency Pairs	22.00%	[1]	17.00%	[1]
Interest rate contracts [Member] | Level 3 [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Assets, Fair Value Disclosure, Recurring	20,000,000		0
Interest rate contracts [Member] | Recurring [Member] | Minimum [Member] | Market comparable adjusted for probability to fund [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Probability to Fund for Rate Lock Commitments	6.00%		6.00%
Interest rate contracts [Member] | Recurring [Member] | Maximum [Member] | Market comparable adjusted for probability to fund [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Probability to Fund for Rate Lock Commitments	99.00%		98.00%
Mortgage servicing rights [Member] | Level 3 [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Assets, Fair Value Disclosure, Recurring	141,000,000		159,000,000
Mortgage servicing rights [Member] | Recurring [Member] | Minimum [Member] | Option adjusted discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Prepayment Rate	11.00%		10.00%
Fair Value Inputs, Option Adjusted Spread	8.00%		8.00%
Fair Value Inputs, Estimated Annualized Costs to Service	91		91
Mortgage servicing rights [Member] | Recurring [Member] | Maximum [Member] | Option adjusted discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Prepayment Rate	51.00%		49.00%
Fair Value Inputs, Option Adjusted Spread	14.00%		19.00%
Fair Value Inputs, Estimated Annualized Costs to Service	333		333
Deposits [Member] | Level 3 [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Liabilities, Fair Value Disclosure, Recurring	(1,926,000,000)	[1],[2]	(1,968,000,000)	[1],[2]
Deposits [Member] | Recurring [Member] | Minimum [Member] | Option adjusted discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Implied Volatility Currency Pairs	17.00%	[1],[2]	10.00%	[1],[2]
Fair Value Inputs, Equity/Equity Index Volatility	13.00%	[1],[2]	11.00%	[1],[2]
Fair Value Inputs, Equity/Equity and Equity/Index Correlation	47.00%		47.00%
Deposits [Member] | Recurring [Member] | Maximum [Member] | Option adjusted discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Implied Volatility Currency Pairs	22.00%	[1],[2]	17.00%	[1],[2]
Fair Value Inputs, Equity/Equity Index Volatility	65.00%	[1],[2]	60.00%	[1],[2]
Fair Value Inputs, Equity/Equity and Equity/Index Correlation	59.00%		73.00%
Long-term debt [Member] | Level 3 [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Liabilities, Fair Value Disclosure, Recurring	(642,000,000)	[1],[2]	(647,000,000)	[1],[2]
Long-term debt [Member] | Recurring [Member] | Minimum [Member] | Option adjusted discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Implied Volatility Currency Pairs	17.00%	[1],[2]	10.00%	[1],[2]
Fair Value Inputs, Equity/Equity Index Volatility	13.00%	[1],[2]	11.00%	[1],[2]
Fair Value Inputs, Equity/Equity and Equity/Index Correlation	47.00%	[1],[2]	47.00%	[1],[2]
Long-term debt [Member] | Recurring [Member] | Maximum [Member] | Option adjusted discounted cash flows [Member]
Fair Value Measurements, Recurring, Valuation Techniques [Line Items]
Fair Value Inputs, Implied Volatility Currency Pairs	22.00%	[1],[2]	17.00%	[1],[2]
Fair Value Inputs, Equity/Equity Index Volatility	65.00%	[1],[2]	60.00%	[1],[2]
Fair Value Inputs, Equity/Equity and Equity/Index Correlation	59.00%	[1],[2]	73.00%	[1],[2]

[1] We are the client-facing entity and we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market neutral. The corresponding intra-group derivatives are presented as equity derivatives and foreign exchange derivatives in the table.

[2] Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs.

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Loans - Delinquency Ratio for Consumer Loan (Detail) (Consumer Loans [Member], USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Delinquent Loans	$ 1,044		$ 1,103
Delinquency Ratio	5.24%		5.59%
Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Delinquent Loans	957	[1],[2]	1,013	[1],[2]
Delinquency Ratio	5.62%	[1],[2]	6.07%	[1],[2]
Home Equity Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Delinquent Loans	60	[1],[2]	62	[1],[2]
Delinquency Ratio	3.50%	[1],[2]	3.48%	[1],[2]
Credit Cards [Member]
Financing Receivable, Recorded Investment [Line Items]
Delinquent Loans	14		14
Delinquency Ratio	2.06%		1.94%
Other consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Delinquent Loans	$ 13		$ 14
Delinquency Ratio	2.53%		2.52%

[1] At March 31, 2015 and December 31, 2014, consumer mortgage loans include $609 million and $608 million, respectively, of loans that were in the process of foreclosure.

[2] At March 31, 2015 and December 31, 2014, consumer mortgage loan delinquency includes $908 million and $936 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

XML

Fair Value Measurements - Additional Information Relating To Asset-Backed Securities and Collateralized Debt Obligations (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015
Level 2 [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	$ 227
Level 3 [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	253
AAA - A Rating [Member] | Level 2 [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	221
AAA - A Rating [Member] | Level 2 [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	208
AAA - A Rating [Member] | Level 3 [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	0
AAA - A Rating [Member] | Level 3 [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	0
Commercial mortgages [Member] | AAA - A Rating [Member] | Level 2 [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	29
Commercial mortgages [Member] | AAA - A Rating [Member] | Level 3 [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	0
Home Equity [Member] | AAA - A Rating [Member] | Level 2 [Member] | Alt [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	85
Home Equity [Member] | AAA - A Rating [Member] | Level 3 [Member] | Alt [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	0
Other [Member] | AAA - A Rating [Member] | Level 2 [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	94
Other [Member] | AAA - A Rating [Member] | Level 3 [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	0
Residential Mortgages [Member] | AAA - A Rating [Member] | Level 2 [Member] | Alt [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	80
Residential Mortgages [Member] | AAA - A Rating [Member] | Level 2 [Member] | Subprime [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	53
Residential Mortgages [Member] | AAA - A Rating [Member] | Level 3 [Member] | Alt [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	0
Residential Mortgages [Member] | AAA - A Rating [Member] | Level 3 [Member] | Subprime [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	0
Residential Mortgages [Member] | CCC - Unrated [Member] | Level 2 [Member] | Subprime [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	6
Residential Mortgages [Member] | CCC - Unrated [Member] | Level 3 [Member] | Subprime [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	0
Collateralized debt obligations [Member] | BBB -B Rating [Member] | Level 2 [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	0
Collateralized debt obligations [Member] | BBB -B Rating [Member] | Level 3 [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	253
Student loans [Member] | AAA - A Rating [Member] | Level 2 [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	88
Student loans [Member] | AAA - A Rating [Member] | Level 3 [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	0
Estimate of fair value [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	480
Estimate of fair value [Member] | AAA - A Rating [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	221
Estimate of fair value [Member] | AAA - A Rating [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	208
Estimate of fair value [Member] | Commercial mortgages [Member] | AAA - A Rating [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	29
Estimate of fair value [Member] | Home Equity [Member] | AAA - A Rating [Member] | Alt [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	85
Estimate of fair value [Member] | Other [Member] | AAA - A Rating [Member] | Available-for-sale Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	94
Estimate of fair value [Member] | Residential Mortgages [Member] | AAA - A Rating [Member] | Alt [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	80
Estimate of fair value [Member] | Residential Mortgages [Member] | AAA - A Rating [Member] | Subprime [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	53
Estimate of fair value [Member] | Residential Mortgages [Member] | CCC - Unrated [Member] | Subprime [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	6
Estimate of fair value [Member] | Collateralized debt obligations [Member] | BBB -B Rating [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	253
Estimate of fair value [Member] | Student loans [Member] | AAA - A Rating [Member] | Trading Securities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Trading asset-backed securities and related collateral	$ 88

XML

Loans - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 81,458,000,000	$ 68,897,000,000	$ 77,741,000,000
Net deferred origination fees	45,000,000		34,000,000
Net unamortized premium on loans	12,000,000		10,000,000
Commercial loans removed from TDR classification	0	0
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	19,811,000,000		19,654,000,000
Weighted average rate of reduction	1.77%	1.50%
Affiliated Entity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 5,016,000,000		$ 4,821,000,000

XML

Intangible Assets - Schedule of Intangible Assets (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 186	$ 206
Purchased credit card relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	46	47
Residential Mortgage [Member] | Mortgage servicing rights [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 140	$ 159

XML

Retained Earnings and Regulatory Capital Requirements - Additional Information (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Repayments of Long-term Debt	$ 7,101	$ 690
Contributions	4,000	0
HSBC USA Inc [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Contributions	4,000
Common Stock [Member] | HSBC Bank USA, National Association [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Distributions	2,400
Number of shares of common stock issued to parent	2
Common Stock [Member] | HSBC USA Inc [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Number of shares of common stock issued to parent	1
Noncumulative Preferred Stock [Member] | HSBC Bank USA, National Association [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Distributions	2,500
Number of shares of common stock issued to parent	250
Senior debt [Member] | HSBC USA Inc [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Repayments of Long-term Debt	4,000
Subordinated Debt [Member] | HSBC Bank USA, National Association [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Repayments of Long-term Debt	$ 900

XML

Trading Assets and Liabilities (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	$ 22,444		$ 21,092
Trading liabilities	11,288		8,164
U.S. Treasury [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	2,912		2,675
US Government agency issued or guaranteed [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	4		3
US Government sponsored enterprises [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	103	[1]	45	[1]
Obligations of U.S. states and political subdivision [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	586		591
Asset backed securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	480		481
Corporate and foreign bonds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	8,525		9,681
Other securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	18		22
Precious metals [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	3,310		1,992
Trading liabilities	0		22
Securities sold, not yet purchased [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading liabilities	646		683
Derivatives [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	6,506		5,602
Derivatives [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading liabilities	10,642		7,459
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | US Government sponsored enterprises [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading assets	$ 103		$ 45

[1] Consists of mortgage backed securities of $103 million and $45 million issued or guaranteed by the Federal National Mortgage Association ("FNMA") at March 31, 2015 and December 31, 2014, respectively.

XML

Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Summary of Changes in the Allowance for Credit Losses and the Related Loan Balance by Product

The following table summarizes the changes in the allowance for credit losses by product and the related loan balance by product during the three months ended March 31, 2015 and 2014:

	Commercial												Consumer
	Construction and Other Real Estate			Business and Corporate Banking			Global Banking			Other Comm’l			Residential Mortgages			Home Equity Mortgages			Credit Card			Other Consumer			Total
	(in millions)
Three Months Ended March 31, 2015
Allowance for credit losses – beginning of period	$	89		$	275		$	107		$	21		$	107		$	32		$	39		$	10		$	680
Provision charged (credited) to income	2			24			21			1			—			(2		)	3			4			53
Charge offs	(1		)	(6		)	—			(1		)	(14		)	(2		)	(8		)	(6		)	(38		)
Recoveries	—			2			—			—			2			1			1			2			8
Net (charge offs) recoveries	(1		)	(4		)	—			(1		)	(12		)	(1		)	(7		)	(4		)	(30		)
Allowance for credit losses – end of period	$	90		$	295		$	128		$	21		$	95		$	29		$	35		$	10		$	703
Ending balance: collectively evaluated for impairment	$	87		$	272		$	128		$	20		$	53		$	28		$	33		$	10		$	631
Ending balance: individually evaluated for impairment	3			23			—			1			42			1			2			—			72
Total allowance for credit losses	$	90		$	295		$	128		$	21		$	95		$	29		$	35		$	10		$	703
Loans:
Collectively evaluated for impairment	$	10,702		$	19,155		$	28,016		$	3,459		$	15,281		$	1,640		$	674		$	424		$	79,351
Individually evaluated for impairment(1)	199			96			13			7			217			5			6			—			543
Loans carried at lower of amortized cost or fair value less cost to sell	—			—			—			—			1,493			71			—			—			1,564
Total loans	$	10,901		$	19,251		$	28,029		$	3,466		$	16,991		$	1,716		$	680		$	424		$	81,458
Three Months Ended March 31, 2014
Allowance for credit losses – beginning of period	$	108		$	112		$	68		$	20		$	186		$	49		$	50		$	13		$	606
Provision charged (credited) to income	2			19			7			(4		)	(16		)	2			5			1			16
Charge offs	(19		)	(5		)	(8		)	—			(17		)	(5		)	(11		)	(2		)	(67		)
Recoveries	2			3			—			3			3			6			1			1			19
Net (charge offs) recoveries	(17		)	(2		)	(8		)	3			(14		)	1			(10		)	(1		)	(48		)
Allowance for credit losses – end of period	$	93		$	129		$	67		$	19		$	156		$	52		$	45		$	13		$	574
Ending balance: collectively evaluated for impairment	$	84		$	126		$	67		$	18		$	96		$	50		$	43		$	13		$	497
Ending balance: individually evaluated for impairment	9			3			—			1			60			2			2			—			77
Total allowance for credit losses	$	93		$	129		$	67		$	19		$	156		$	52		$	45		$	13		$	574
Loans:
Collectively evaluated for impairment	$	8,905		$	15,681		$	21,979		$	3,031		$	14,150		$	1,851		$	674		$	483		$	66,754
Individually evaluated for impairment(1)	260			17			—			20			202			19			9			—			527
Loans carried at lower of amortized cost or fair value less cost to sell	—			—			—			—			1,548			68			—			—			1,616
Total loans	$	9,165		$	15,698		$	21,979		$	3,051		$	15,900		$	1,938		$	683		$	483		$	68,897

⁽¹⁾  For consumer loans and certain small business loans, these amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow analysis is then applied to these groups of TDR Loans. Loans individually evaluated for impairment exclude TDR loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $778 million and $718 million at March 31, 2015 and 2014, respectively.

XML

Intangible Assets - Fair Value of Residential MSRs (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Annualized constant prepayment rate (CPR)	18.20%	15.90%
Constant discount rate	14.00%	14.10%
Weighted average life	3 years 8 months 7 days	4 years 1 month 10 days

XML

Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on Recurring Basis (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Netting, Assets	$ (72,092)	[1],[2]	$ (63,913)	[1],[2]
Netting Liabilities	(72,092)	[1],[2]	(63,913)	[1],[2]
Trading assets	22,444		21,092
Trading liabilities	11,288		8,164
Obligations of U.S. states and political subdivision [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Trading assets	586		591
Other securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Trading assets	18		22
Precious metals [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Trading assets	3,310		1,992
Trading liabilities	0		22
Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Trading liabilities	10,642		7,459
Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Trading assets	6,506		5,602
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	28,140		24,828
Gross Balance, Liabilities	613		727
Level 1 [Member] | Trading liabilities excluding derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	477		653
Level 1 [Member] | Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	136	[3]	74	[3]
Level 1 [Member] | Derivative Financial Instruments, Liabilities [Member] | Interest rate contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	58	[3]	43	[3]
Level 1 [Member] | Derivative Financial Instruments, Liabilities [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	47	[3]	13	[3]
Level 1 [Member] | Derivative Financial Instruments, Liabilities [Member] | Equity contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	0	[3]	0	[3]
Level 1 [Member] | Derivative Financial Instruments, Liabilities [Member] | Precious metals contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	31	[3]	18	[3]
Level 1 [Member] | Derivative Financial Instruments, Liabilities [Member] | Credit contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	0	[3]	0	[3]
Level 1 [Member] | Derivative Financial Instruments, Liabilities [Member] | Derivatives netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	0	[3]	0	[3]
Level 1 [Member] | Trading Securities, excluding derivatives [Member] | U.S. Treasury, U.S. Government agencies and sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	2,912		2,675
Level 1 [Member] | Trading Securities, excluding derivatives [Member] | Obligations of U.S. states and political subdivision [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Trading Securities, excluding derivatives [Member] | Collateralized debt obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Trading Securities, excluding derivatives [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Trading Securities, excluding derivatives [Member] | Student Loan Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Trading Securities, excluding derivatives [Member] | Corporate and other domestic [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Trading Securities, excluding derivatives [Member] | Corporate debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Trading Securities, excluding derivatives [Member] | Government debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Trading Securities, excluding derivatives [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Trading Securities, excluding derivatives [Member] | Precious metals [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Derivative financial assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	87	[3]	105	[3]
Level 1 [Member] | Derivative financial assets [Member] | Interest rate contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	32	[3]	46	[3]
Level 1 [Member] | Derivative financial assets [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	22	[3]	0	[3]
Level 1 [Member] | Derivative financial assets [Member] | Equity contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[3]	0	[3]
Level 1 [Member] | Derivative financial assets [Member] | Precious metals contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	33	[3]	59	[3]
Level 1 [Member] | Derivative financial assets [Member] | Credit contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[3]	0	[3]
Level 1 [Member] | Derivative financial assets [Member] | Derivatives netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[3]	0	[3]
Level 1 [Member] | Securities available-for-sale [Member] | U.S. Treasury, U.S. Government agencies and sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	25,141		22,048
Level 1 [Member] | Securities available-for-sale [Member] | Obligations of U.S. states and political subdivision [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Securities available-for-sale [Member] | Commercial Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Securities available-for-sale [Member] | Home Equity Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Securities available-for-sale [Member] | Other securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Securities available-for-sale [Member] | Corporate debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Securities available-for-sale [Member] | Government debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 1 [Member] | Securities available-for-sale [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	104,653		93,575
Gross Balance, Liabilities	98,260		87,302
Level 2 [Member] | Trading liabilities excluding derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	169		52
Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	84,678	[3]	73,728	[3]
Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | Interest rate contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	52,183	[3]	46,683	[3]
Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	26,315	[3]	20,847	[3]
Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | Equity contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	1,603	[3]	1,661	[3]
Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | Precious metals contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	645	[3]	596	[3]
Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | Credit contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	3,932	[3]	3,941	[3]
Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | Derivatives netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	0	[3]	0	[3]
Level 2 [Member] | Trading Securities, excluding derivatives [Member] | U.S. Treasury, U.S. Government agencies and sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	107		48
Level 2 [Member] | Trading Securities, excluding derivatives [Member] | Obligations of U.S. states and political subdivision [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	586		591
Level 2 [Member] | Trading Securities, excluding derivatives [Member] | Collateralized debt obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 2 [Member] | Trading Securities, excluding derivatives [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	139		142
Level 2 [Member] | Trading Securities, excluding derivatives [Member] | Student Loan Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	88		86
Level 2 [Member] | Trading Securities, excluding derivatives [Member] | Corporate and other domestic [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		1
Level 2 [Member] | Trading Securities, excluding derivatives [Member] | Corporate debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	183		184
Level 2 [Member] | Trading Securities, excluding derivatives [Member] | Government debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	5,494		6,656
Level 2 [Member] | Trading Securities, excluding derivatives [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	18		22
Level 2 [Member] | Trading Securities, excluding derivatives [Member] | Precious metals [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	3,310		1,992
Level 2 [Member] | Derivative financial assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	86,518	[3]	75,377	[3]
Level 2 [Member] | Derivative financial assets [Member] | Interest rate contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	51,719	[3]	46,012	[3]
Level 2 [Member] | Derivative financial assets [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	27,735	[3]	22,241	[3]
Level 2 [Member] | Derivative financial assets [Member] | Equity contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	2,245	[3]	2,212	[3]
Level 2 [Member] | Derivative financial assets [Member] | Precious metals contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	794	[3]	1,013	[3]
Level 2 [Member] | Derivative financial assets [Member] | Credit contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	4,025	[3]	3,899	[3]
Level 2 [Member] | Derivative financial assets [Member] | Derivatives netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[3]	0	[3]
Level 2 [Member] | Securities available-for-sale [Member] | U.S. Treasury, U.S. Government agencies and sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	2,721		3,117
Level 2 [Member] | Securities available-for-sale [Member] | Obligations of U.S. states and political subdivision [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	748		667
Level 2 [Member] | Securities available-for-sale [Member] | Commercial Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	29		43
Level 2 [Member] | Securities available-for-sale [Member] | Home Equity Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	85		89
Level 2 [Member] | Securities available-for-sale [Member] | Other securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	94		94
Level 2 [Member] | Securities available-for-sale [Member] | Corporate debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	360		517
Level 2 [Member] | Securities available-for-sale [Member] | Government debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	3,753		3,398
Level 2 [Member] | Securities available-for-sale [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	165		167
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	3,705		3,752
Gross Balance, Liabilities	2,776		2,863
Level 3 [Member] | Collateralized debt obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	254		253
Level 3 [Member] | Corporate and other domestic [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	2,848		2,840
Level 3 [Member] | Interest rate contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	20		0
Level 3 [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[4]	0	[4]
Level 3 [Member] | Equity contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	43	[4]	42
Level 3 [Member] | Credit contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	192		210
Level 3 [Member] | Trading liabilities excluding derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	0		0
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	208	[3]	248	[3]
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | Interest rate contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	1	[3]	1	[3]
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	19	[3]	23	[3]
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | Equity contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	122	[3]	138	[3]
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | Precious metals contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	0	[3]	0	[3]
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | Credit contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	66	[3]	86	[3]
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | Derivatives netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	0	[3]	0	[3]
Level 3 [Member] | Trading Securities, excluding derivatives [Member] | U.S. Treasury, U.S. Government agencies and sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Trading Securities, excluding derivatives [Member] | Obligations of U.S. states and political subdivision [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Trading Securities, excluding derivatives [Member] | Collateralized debt obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	253		253
Level 3 [Member] | Trading Securities, excluding derivatives [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Trading Securities, excluding derivatives [Member] | Student Loan Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Trading Securities, excluding derivatives [Member] | Corporate and other domestic [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	2,848		2,840
Level 3 [Member] | Trading Securities, excluding derivatives [Member] | Corporate debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Trading Securities, excluding derivatives [Member] | Government debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Trading Securities, excluding derivatives [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Trading Securities, excluding derivatives [Member] | Precious metals [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Derivative financial assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	463	[3]	500	[3]
Level 3 [Member] | Derivative financial assets [Member] | Interest rate contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	21	[3]	1	[3]
Level 3 [Member] | Derivative financial assets [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	19	[3]	23	[3]
Level 3 [Member] | Derivative financial assets [Member] | Equity contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	165	[3]	180	[3]
Level 3 [Member] | Derivative financial assets [Member] | Precious metals contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[3]	0	[3]
Level 3 [Member] | Derivative financial assets [Member] | Credit contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	258	[3]	296	[3]
Level 3 [Member] | Derivative financial assets [Member] | Derivatives netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[3]	0	[3]
Level 3 [Member] | Securities available-for-sale [Member] | U.S. Treasury, U.S. Government agencies and sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Securities available-for-sale [Member] | Obligations of U.S. states and political subdivision [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Securities available-for-sale [Member] | Commercial Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Securities available-for-sale [Member] | Home Equity Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Securities available-for-sale [Member] | Other securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Securities available-for-sale [Member] | Corporate debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Securities available-for-sale [Member] | Government debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Level 3 [Member] | Securities available-for-sale [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0		0
Estimate of fair value [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	136,498		122,155
Netting, Assets	(78,665)	[5]	(68,724)	[5]
Net Balance, Assets	57,833		53,431
Gross Balance, Liabilities	101,649		90,892
Netting Liabilities	(73,176)	[5]	(65,637)	[5]
Net Balance, Liabilities	28,473		25,255
Estimate of fair value [Member] | Trading liabilities excluding derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	646		705
Net Balance, Liabilities	646		705
Estimate of fair value [Member] | Derivative Financial Instruments, Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	85,022	[3]	74,050	[3]
Netting Liabilities	(73,176)	[3],[5]	(65,637)	[3],[5]
Net Balance, Liabilities	11,846	[3]	8,413	[3]
Estimate of fair value [Member] | Derivative Financial Instruments, Liabilities [Member] | Interest rate contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	52,242	[3]	46,727	[3]
Netting Liabilities	0	[3],[5]	0	[3],[5]
Net Balance, Liabilities	52,242	[3]	46,727	[3]
Estimate of fair value [Member] | Derivative Financial Instruments, Liabilities [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	26,381	[3]	20,883	[3]
Netting Liabilities	0	[3],[5]	0	[3],[5]
Net Balance, Liabilities	26,381	[3]	20,883	[3]
Estimate of fair value [Member] | Derivative Financial Instruments, Liabilities [Member] | Equity contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	1,725	[3]	1,799	[3]
Netting Liabilities	0	[3],[5]	0	[3],[5]
Net Balance, Liabilities	1,725	[3]	1,799	[3]
Estimate of fair value [Member] | Derivative Financial Instruments, Liabilities [Member] | Precious metals contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	676	[3]	614	[3]
Netting Liabilities	0	[3],[5]	0	[3],[5]
Net Balance, Liabilities	676	[3]	614	[3]
Estimate of fair value [Member] | Derivative Financial Instruments, Liabilities [Member] | Credit contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	3,998	[3]	4,027	[3]
Netting Liabilities	0	[3],[5]	0	[3],[5]
Net Balance, Liabilities	3,998	[3]	4,027	[3]
Estimate of fair value [Member] | Derivative Financial Instruments, Liabilities [Member] | Derivatives netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	0	[3]	0	[3]
Netting Liabilities	(73,176)	[3],[5]	(65,637)	[3],[5]
Net Balance, Liabilities	(73,176)	[3]	(65,637)	[3]
Estimate of fair value [Member] | Trading Securities, excluding derivatives [Member] | U.S. Treasury, U.S. Government agencies and sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	3,019		2,723
Net Balance, Assets	3,019		2,723
Estimate of fair value [Member] | Trading Securities, excluding derivatives [Member] | Obligations of U.S. states and political subdivision [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	586		591
Net Balance, Assets	586		591
Estimate of fair value [Member] | Trading Securities, excluding derivatives [Member] | Collateralized debt obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	253		253
Net Balance, Assets	253		253
Estimate of fair value [Member] | Trading Securities, excluding derivatives [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	139		142
Net Balance, Assets	139		142
Estimate of fair value [Member] | Trading Securities, excluding derivatives [Member] | Student Loan Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	88		86
Net Balance, Assets	88		86
Estimate of fair value [Member] | Trading Securities, excluding derivatives [Member] | Corporate and other domestic [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	2,848		2,841
Net Balance, Assets	2,848		2,841
Estimate of fair value [Member] | Trading Securities, excluding derivatives [Member] | Corporate debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	183		184
Net Balance, Assets	183		184
Estimate of fair value [Member] | Trading Securities, excluding derivatives [Member] | Government debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	5,494		6,656
Net Balance, Assets	5,494		6,656
Estimate of fair value [Member] | Trading Securities, excluding derivatives [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	18		22
Net Balance, Assets	18		22
Estimate of fair value [Member] | Trading Securities, excluding derivatives [Member] | Precious metals [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	3,310		1,992
Net Balance, Assets	3,310		1,992
Estimate of fair value [Member] | Derivative financial assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	87,068	[3]	75,982	[3]
Netting, Assets	(78,665)	[3],[5]	(68,724)	[3],[5]
Net Balance, Assets	8,403	[3]	7,258	[3]
Estimate of fair value [Member] | Derivative financial assets [Member] | Interest rate contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	51,772	[3]	46,059	[3]
Netting, Assets	0	[3],[5]	0	[3],[5]
Net Balance, Assets	51,772	[3]	46,059	[3]
Estimate of fair value [Member] | Derivative financial assets [Member] | Foreign exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	27,776	[3]	22,264	[3]
Netting, Assets	0	[3],[5]	0	[3],[5]
Net Balance, Assets	27,776	[3]	22,264	[3]
Estimate of fair value [Member] | Derivative financial assets [Member] | Equity contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	2,410	[3]	2,392	[3]
Netting, Assets	0	[3],[5]	0	[3],[5]
Net Balance, Assets	2,410	[3]	2,392	[3]
Estimate of fair value [Member] | Derivative financial assets [Member] | Precious metals contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	827	[3]	1,072	[3]
Netting, Assets	0	[3],[5]	0	[3],[5]
Net Balance, Assets	827	[3]	1,072	[3]
Estimate of fair value [Member] | Derivative financial assets [Member] | Credit contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	4,283	[3]	4,195	[3]
Netting, Assets	0	[3],[5]	0	[3],[5]
Net Balance, Assets	4,283	[3]	4,195	[3]
Estimate of fair value [Member] | Derivative financial assets [Member] | Derivatives netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[3]	0	[3]
Netting, Assets	(78,665)	[3],[5]	(68,724)	[3],[5]
Net Balance, Assets	(78,665)	[3]	(68,724)	[3]
Estimate of fair value [Member] | Securities available-for-sale [Member] | U.S. Treasury, U.S. Government agencies and sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	27,862		25,165
Net Balance, Assets	27,862		25,165
Estimate of fair value [Member] | Securities available-for-sale [Member] | Obligations of U.S. states and political subdivision [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	748		667
Net Balance, Assets	748		667
Estimate of fair value [Member] | Securities available-for-sale [Member] | Commercial Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	29		43
Net Balance, Assets	29		43
Estimate of fair value [Member] | Securities available-for-sale [Member] | Home Equity Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	85		89
Net Balance, Assets	85		89
Estimate of fair value [Member] | Securities available-for-sale [Member] | Other securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	94		94
Net Balance, Assets	94		94
Estimate of fair value [Member] | Securities available-for-sale [Member] | Corporate debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	360		517
Net Balance, Assets	360		517
Estimate of fair value [Member] | Securities available-for-sale [Member] | Government debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	3,753		3,398
Net Balance, Assets	3,753		3,398
Estimate of fair value [Member] | Securities available-for-sale [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	165		167
Net Balance, Assets	165		167
Loans Receivable [Member] | Level 1 [Member] | Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[6]	0	[6]
Loans Receivable [Member] | Level 2 [Member] | Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	255	[6]	384	[6]
Loans Receivable [Member] | Level 3 [Member] | Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[6]	0	[6]
Loans Receivable [Member] | Estimate of fair value [Member] | Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	255	[6]	384	[6]
Net Balance, Assets	255	[6]	384	[6]
Deposits [Member] | Level 1 [Member] | Deposits In Domestic Offices [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	0	[7]	0	[7]
Deposits [Member] | Level 2 [Member] | Deposits In Domestic Offices [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	5,022	[7]	5,378	[7]
Deposits [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	1,926	[4],[8]	1,968	[4],[8]
Deposits [Member] | Level 3 [Member] | Deposits In Domestic Offices [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	1,926	[7]	1,968	[7]
Deposits [Member] | Estimate of fair value [Member] | Deposits In Domestic Offices [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	6,948	[7]	7,346	[7]
Net Balance, Liabilities	6,948	[7]	7,346	[7]
Long-term debt [Member] | Level 1 [Member] | Long-term Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	0		0
Long-term debt [Member] | Level 2 [Member] | Long-term Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	8,391		8,144
Long-term debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	642	[4],[8]	647	[4],[8]
Long-term debt [Member] | Level 3 [Member] | Long-term Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	642		647
Long-term debt [Member] | Estimate of fair value [Member] | Long-term Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Liabilities	9,033		8,791
Netting Liabilities	0	[5]
Net Balance, Liabilities	9,033		8,791
Mortgage servicing rights [Member] | Level 1 [Member] | Mortgage servicing rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[9]	0	[9]
Mortgage servicing rights [Member] | Level 2 [Member] | Mortgage servicing rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	0	[9]	0	[9]
Mortgage servicing rights [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	141		159
Mortgage servicing rights [Member] | Level 3 [Member] | Mortgage servicing rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	141	[9]	159	[9]
Mortgage servicing rights [Member] | Estimate of fair value [Member] | Mortgage servicing rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Gross Balance, Assets	141	[9]	159	[9]
Net Balance, Assets	$ 141	[9]	$ 159	[9]

[1] Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements.

[2] Netting is performed at a counterparty level in cases where enforceable master netting and credit support agreements are in place, regardless of the type of derivative instrument. Therefore, we have not attempted to allocate netting to the different types of derivative instruments shown in the table above.

[3] Includes trading derivative assets of $6,506 million and $5,602 million and trading derivative liabilities of $10,642 million and $7,459 million as of March 31, 2015 and December 31, 2014, respectively, as well as derivatives held for hedging and commitments accounted for as derivatives.

[4] We are the client-facing entity and we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market neutral. The corresponding intra-group derivatives are presented as equity derivatives and foreign exchange derivatives in the table.

[5] Represents counterparty and cash collateral netting which allow the offsetting of amounts relating to certain contracts if certain conditions are met.

[6] Includes certain commercial loans held for sale which we have elected to apply the fair value option. See Note 6, "Loans Held for Sale," for further information.

[7] See Note 10, "Fair Value Option," for additional information.

[8] Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs.

[9] See Note 7, "Intangible Assets," for additional information.

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Loans - Concentration of Credit Risk (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Interest only residential mortgage loans	$ 3,561	$ 3,531

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Derivative Financial Instruments - Credit-Risk Related Contingent Features (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015
S&P Long Term Ratings A [Member]
Credit Derivatives [Line Items]
Total Credit Rating Scenario of Derivatives	$ 0
S&P Long Term Ratings A [Member]
Credit Derivatives [Line Items]
Total Credit Rating Scenario of Derivatives	47
Moody's Long Term Ratings A2 [Member]
Credit Derivatives [Line Items]
Total Credit Rating Scenario of Derivatives	47
Moody's Long Term Ratings A3 [Member]
Credit Derivatives [Line Items]
Total Credit Rating Scenario of Derivatives	$ 414

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Loans - Summary of Nonaccrual Loans and Accruing Receivables 90 Days or More Delinquent (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total nonaccruing loans	$ 1,062		$ 1,101
Total accruing loans contractually past due 90 days or more	20		21
Total nonperforming loans	1,082		1,122
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	152		139
Total nonaccruing loans	188		182
Total accruing loans contractually past due 90 days or more	1		1
Commercial Loans [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	74		65
Total accruing loans contractually past due 90 days or more	0		0
Commercial Loans [Member] | Business and Corporate Banking [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	78		74
Total accruing loans contractually past due 90 days or more	1		1
Commercial Loans [Member] | Nonaccrual Loans Held-for-sale [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total nonaccruing loans	36		43
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	870		915
Total nonaccruing loans	874		919
Total accruing loans contractually past due 90 days or more	19		20
Consumer Loans [Member] | Nonaccrual Loans Held-for-sale [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total nonaccruing loans	4		4
Consumer Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	803	[1],[2],[3]	847	[1],[2],[3]
Total accruing loans contractually past due 90 days or more	0		0
Consumer Loans [Member] | Home Equity Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	67	[1],[2]	68	[1],[2]
Total accruing loans contractually past due 90 days or more	0		0
Consumer Loans [Member] | Credit Card Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total accruing loans contractually past due 90 days or more	10		10
Consumer Loans [Member] | Other consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	0		0
Total accruing loans contractually past due 90 days or more	$ 9		$ 10

[1] Nonaccrual consumer mortgage loans include all receivables which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent.

[2] At March 31, 2015 and December 31, 2014, nonaccrual consumer mortgage loans include $760 million and $817 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

[3] Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association ("GNMA"). Repayment of these loans are predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.

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Guarantee Arrangements and Pledged Assets and Collateral - Carrying Value and Contractual Amounts of our Sell Protection Credit Derivatives and Major Off-Balance Sheet Guarantee Arrangements - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Guarantor Obligations [Line Items]
Notional/Maximum Exposure to Loss	$ 127,512		$ 128,894
Credit derivatives [Member]
Guarantor Obligations [Line Items]
Notional/Maximum Exposure to Loss	115,685	[1],[2]	117,768	[1],[2]
Financial standby letters of credit, net of participations [Member]
Guarantor Obligations [Line Items]
Notional/Maximum Exposure to Loss	6,174	[3],[4]	5,358	[3],[4]
Affiliated Entity [Member] | Credit derivatives [Member]
Guarantor Obligations [Line Items]
Notional/Maximum Exposure to Loss	32,035		32,688
Affiliated Entity [Member] | Financial standby letters of credit, net of participations [Member]
Guarantor Obligations [Line Items]
Notional/Maximum Exposure to Loss	$ 880		$ 937

[1] Includes $32,035 million and $32,688 million of notional issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

[2] For credit derivatives, the maximum loss is represented by the notional amounts without consideration of mitigating effects from collateral or recourse arrangements.

[3] Includes $880 million and $937 million issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

[4] For standby letters of credit and liquidity asset purchase agreements, maximum loss represents losses to be recognized assuming the letter of credit and liquidity facilities have been fully drawn and the obligors have defaulted with zero recovery.

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Loans Held for Sale (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	$ 405	$ 612
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	291	528
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	114	84
Consumer Loans [Member] | Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	24	18
Consumer Loans [Member] | Other consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	$ 90	$ 66

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Derivative Financial Instruments - Gains and Losses on Derivative Instruments Designated and Qualifying As Hedging Instruments in Cash Flow Hedges (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)	$ (33)	$ (35)
Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)	(3)	(1)
Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion)	0	0
Foreign exchange contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)	0	1
Foreign exchange contracts [Member] | Interest Income (Expense), Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)	0	0
Foreign exchange contracts [Member] | Other Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion)	0	0
Interest rate contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)	(33)	(36)
Interest rate contracts [Member] | Interest Income (Expense), Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)	(3)	(1)
Interest rate contracts [Member] | Other Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion)	$ 0	$ 0

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Intangible Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2012	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Outstanding principal balances at period end of residential mortgage loans serviced for others	$ 22,244			$ 23,101
Outstanding principal balances at period end of residential mortgage loans owned and serviced for others	40,319			40,889
Purchased from HSBC Finance account of credit card			746
Credit card receivables not being sold to Capital One at a fair value			108
Fair value of Intangible asset related to account relationships purchased include in branch sale			43
Fair value of Intangible asset related to account relationships purchased retained			65
Residential mortgage banking revenue [Member]
Finite-Lived Intangible Assets [Line Items]
Servicing fees collected	$ 15	$ 18
Purchased credit card relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life			10 years

XML

Derivative Financial Instruments - Gains and Losses on Derivative Instruments Held For Trading Purpose (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 162	$ 98
Trading revenue [Member] | Interest rate contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	470	61
Trading revenue [Member] | Foreign exchange contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	(356)	25
Trading revenue [Member] | Equity contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	(1)	0
Trading revenue [Member] | Precious metals contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	46	8
Trading revenue [Member] | Credit contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	(21)	(7)
Residential mortgage banking revenue [Member] | Interest rate contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 24	$ 11

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Loans Held for Sale - Additional Information (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	$ 405,000,000	$ 612,000,000
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	291,000,000	528,000,000
Valuation allowance	12,000,000	5,000,000
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	114,000,000	84,000,000
Valuation allowance	12,000,000	15,000,000
Commercial Loans - Fair Value Option [Member] | Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	255,000,000	384,000,000
Global Banking [Member] | Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	34,000,000	44,000,000
Commercial Real Estate [Member] | Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	2,000,000	100,000,000
Subprime Residential Mortgage Loans [Member] | Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	$ 4,000,000	$ 4,000,000

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Loans - Delinquency Ratio for Consumer Loan - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Residential Mortgage Loan Delinquency Carried At Lower Of Amortized Cost Or Fair Value Less Cost To Sell	$ 908	$ 936
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Mortgage Loans in Process of Foreclosure, Amount	$ 609	$ 608

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Guarantee Arrangements and Pledged Assets and Collateral

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Guarantee Arrangements and Pledged Assets and Collateral

Guarantee Arrangements, Pledged Assets and Collateral

Guarantee Arrangements As part of our normal operations, we enter into credit derivatives and various off-balance sheet guarantee arrangements with affiliates and third parties. These arrangements arise principally in connection with our lending and client intermediation activities and include standby letters of credit and certain credit derivative transactions. The contractual amounts of these arrangements represent our maximum possible credit exposure in the event that we are required to fulfill the maximum obligation under the contractual terms of the guarantee.

The following table presents total carrying value and contractual amounts of our sell protection credit derivatives and major off-balance sheet guarantee arrangements as of March 31, 2015 and December 31, 2014. Following the table is a description of the various arrangements.

	March 31, 2015					December 31, 2014
	Carrying Value			Notional / Maximum Exposure to Loss		Carrying Value			Notional / Maximum Exposure to Loss
	(in millions)
Credit derivatives(1)(4)	$	(1,776	)	$	115,685	$	(1,484	)	$	117,768
Financial standby letters of credit, net of participations(2)(3)	—			6,174		—			5,358
Performance standby letters of credit, net of participations(2)(3)	—			2,943		—			3,083
Liquidity asset purchase agreements(3)	—			2,710		—			2,685
Total	$	(1,776	)	$	127,512	$	(1,484	)	$	128,894

⁽¹⁾  Includes $32,035 million and $32,688 million of notional issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  Includes $880 million and $937 million issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

⁽³⁾  For standby letters of credit and liquidity asset purchase agreements, maximum loss represents losses to be recognized assuming the letter of credit and liquidity facilities have been fully drawn and the obligors have defaulted with zero recovery.

⁽⁴⁾  For credit derivatives, the maximum loss is represented by the notional amounts without consideration of mitigating effects from collateral or recourse arrangements.

Credit-Risk Related Guarantees

Credit derivatives  Credit derivatives are financial instruments that transfer the credit risk of a reference obligation from the credit protection buyer to the credit protection seller who is exposed to the credit risk without buying the reference obligation. We sell credit protection on underlying reference obligations (such as loans or securities) by entering into credit derivatives, primarily in the form of credit default swaps, with various institutions. We account for all credit derivatives at fair value. Where we sell credit protection to a counterparty that holds the reference obligation, the arrangement is effectively a financial guarantee on the reference obligation. Under a credit derivative contract, the credit protection seller will reimburse the credit protection buyer upon occurrence of a credit event (such as bankruptcy, insolvency, restructuring or failure to meet payment obligations when due) as defined in the derivative contract, in return for a periodic premium. Upon occurrence of a credit event, we will pay the counterparty the stated notional amount of the derivative contract and receive the underlying reference obligation. The recovery value of the reference obligation received could be significantly lower than its notional principal amount when a credit event occurs.

Certain derivative contracts are subject to master netting arrangements and related collateral agreements. A party to a derivative contract may demand that the counterparty post additional collateral in the event its net exposure exceeds certain predetermined limits and when the credit rating falls below a certain grade. We set the collateral requirements by counterparty such that the collateral covers various transactions and products, and is not allocated to specific individual contracts.

We manage our exposure to credit derivatives using a variety of risk mitigation strategies where we enter into offsetting hedge positions or transfer the economic risks, in part or in entirety, to investors through the issuance of structured credit products. We actively manage the credit and market risk exposure in the credit derivative portfolios on a net basis and, as such, retain no or a limited net sell protection position at any time. The following table summarizes our net credit derivative positions as of March 31, 2015 and December 31, 2014:

	March 31, 2015					December 31, 2014
	Carrying / Fair Value			Notional		Carrying / Fair Value			Notional
	(in millions)
Sell-protection credit derivative positions	$	(1,776	)	$	115,685	$	(1,484	)	$	117,768
Buy-protection credit derivative positions	2,142			121,864		1,741			122,969
Net position(1)	$	366		$	6,179	$	257		$	5,201

⁽¹⁾  Positions are presented net in the table above to provide a complete analysis of our risk exposure and depict the way we manage our credit derivative portfolio. The offset of the sell-protection credit derivatives against the buy-protection credit derivatives may not be legally binding in the absence of master netting agreements with the same counterparty. Furthermore, the credit loss triggering events for individual sell protection credit derivatives may not be the same or occur in the same period as those of the buy protection credit derivatives thereby not providing an exact offset.

Standby letters of credit  A standby letter of credit is issued to a third party for the benefit of a customer and is a guarantee that the customer will perform or satisfy certain obligations under a contract. It irrevocably obligates us to pay a specified amount to the third party beneficiary if the customer fails to perform the contractual obligation. We issue two types of standby letters of credit: performance and financial. A performance standby letter of credit is issued where the customer is required to perform some non-financial contractual obligation, such as the performance of a specific act, whereas a financial standby letter of credit is issued where the customer's contractual obligation is of a financial nature, such as the repayment of a loan or debt instrument. As of March 31, 2015, the total amount of outstanding financial standby letters of credit (net of participations) and performance guarantees (net of participations) were $6,174 million and $2,943 million, respectively. As of December 31, 2014, the total amount of outstanding financial standby letters of credit (net of participations) and performance guarantees (net of participations) were $5,358 million and $3,083 million, respectively.

The issuance of a standby letter of credit is subject to our credit approval process and collateral requirements. We charge fees for issuing letters of credit commensurate with the customer's credit evaluation and the nature of any collateral. Included in other liabilities are deferred fees on standby letters of credit, which represent the value of the stand-ready obligation to perform under these guarantees, amounting to $52 million and $50 million at March 31, 2015 and December 31, 2014, respectively. Also included in other liabilities is an allowance for credit losses on unfunded standby letters of credit of $17 million and $16 million at March 31, 2015 and December 31, 2014, respectively.

The following table summarizes the credit ratings of credit risk related guarantees including the credit ratings of counterparties against which we sold credit protection and financial standby letters of credit as of March 31, 2015 as an indicative proxy of payment risk:

	Average Life (in years)	Credit Ratings of the Obligors or the Transactions
Notional/Contractual Amounts		Investment       Grade		Non-Investment Grade		Total
	(dollars are in millions)
Sell-protection Credit Derivatives(1)
Single name credit default swaps ("CDS")	2.7	$	72,959	$	19,139	$	92,098
Structured CDS	1.8	6,111		652		6,763
Index credit derivatives	2.2	4,840		8,288		13,128
Total return swaps	2.7	3,299		397		3,696
Subtotal		87,209		28,476		115,685
Standby Letters of Credit(2)	1.1	6,717		2,400		9,117
Total		$	93,926	$	30,876	$	124,802

⁽¹⁾  The credit ratings in the table represent external credit ratings for classification as investment grade and non-investment grade.

⁽²⁾  External ratings for most of the obligors are not available. Presented above are the internal credit ratings which are developed using similar methodologies and rating scale equivalent to external credit ratings for purposes of classification as investment grade and non-investment grade.

Our internal groupings are determined based on HSBC's risk rating systems and processes which assign a credit grade based on a scale which ranks the risk of default of a customer. The groupings are determined and used for managing risk and determining level of credit exposure appetite based on the customer's operating performance, liquidity, capital structure and debt service ability. In addition, we also incorporate subjective judgments into the risk rating process concerning such things as industry trends, comparison of performance to industry peers and perceived quality of management. We compare our internal risk ratings to outside external rating agency benchmarks, where possible, at the time of formal review and regularly monitor whether our risk ratings are comparable to the external ratings benchmark data.

A non-investment grade rating of a referenced obligor has a negative impact to the fair value of the credit derivative and increases the likelihood that we will be required to perform under the credit derivative contract. We employ market-based parameters and, where possible, use the observable credit spreads of the referenced obligors as measurement inputs in determining the fair value of the credit derivatives. We believe that such market parameters are more indicative of the current status of payment/performance risk than external ratings by the rating agencies which may not be forward-looking in nature and, as a result, lag behind those market-based indicators.

Non Credit-Risk Related Guarantees and Other Arrangements

Liquidity asset purchase agreements  We provide liquidity facilities to Regency, a multi-seller ABCP conduit consolidated by an HSBC affiliate. Regency finances the purchase of individual assets by issuing commercial paper to third party investors. Each liquidity facility is transaction specific and has a maximum limit. Pursuant to the liquidity agreements, we are obligated, subject to certain limitations, to advance funds in an amount not to exceed the face value of the commercial paper in the event Regency is unable or unwilling to refinance its commercial paper. A liquidity asset purchase agreement is economically a conditional written put option issued to the conduit where the exercise price is the face value of the commercial paper. As of March 31, 2015 and December 31, 2014 we had issued $2,710 million and $2,685 million, respectively, of liquidity facilities to provide liquidity support to ABCP conduits. See Note 16, "Variable Interest Entities," for further information.

Clearinghouses and exchanges  We are a member of various exchanges and clearinghouses that trade and clear securities and/or derivatives contracts. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, members of a clearinghouse may be required to contribute to a guaranty fund to backstop members' obligations to the clearinghouse. As a member, we may be required to pay a proportionate share of the financial obligations of another member who defaults on its obligations to the exchange or the clearinghouse. Our guarantee obligations would arise only if the exchange or clearinghouse had exhausted its resources. Any potential contingent liability under these membership agreements cannot be estimated.

Securitization Activity  In addition to the repurchase risk described above, we have also been involved as a sponsor/seller of loans used to facilitate whole loan securitizations underwritten by our affiliate, HSI. In this regard, we began acquiring residential mortgage loans in 2005 which were warehoused on our balance sheet with the intent of selling them to HSI to facilitate HSI’s whole loan securitization program which was discontinued in 2007. During 2005-2007, we purchased and sold $24 billion of such loans to HSI which were subsequently securitized and sold by HSI to third parties. See "Mortgage Securitization Matters" in Note 28, "Litigation and Regulatory Matters," in our 2014 Form10-K for additional discussion of related exposure. There have been no significant changes with regards to this exposure since December 31, 2014. The outstanding principal balance on these loans was approximately $5.7 billion at both March 31, 2015 and December 31, 2014, respectively.

Mortgage Loan Repurchase Obligations  In the ordinary course of business, we originate and sell mortgage loans and provide various representations and warranties related to, among other things, the ownership of the loans, the validity of the liens, the loan selection and origination process, and the compliance to the origination criteria established by the agencies. In the event of a breach of our representations and warranties, we may be obligated to repurchase the loans with identified defects or to indemnify the buyers. Our contractual obligation arises only when the breach of representations and warranties are discovered and repurchase is demanded. Historically, these sales had been primarily to government sponsored entities ("GSEs") and, as a result of settlements with FNMA and FHLMC during 2013 and 2014, the repurchase exposure associated with these sales has been substantially resolved. In addition, with the conversion of our mortgage processing and servicing operations to PHH Mortgage in 2013, new agency eligible originations are sold directly to PHH Mortgage and PHH Mortgage is responsible for origination representations and warranties for all loans purchased.

During the first quarter of 2014, we entered into a settlement with the FHLMC for $25 million, reflected in realized losses in the liability rollforward below, which settled our liability for substantially all loans sold to FHLMC from January 1, 2000 through 2013. As a result of the settlement and a re-assessment of the residual exposure, we released $34 million in repurchase reserves. We continue to maintain repurchase reserves for exposure associated with residual risks not covered by the settlement agreement.

The following table provides information about outstanding repurchase demands received from GSEs and other third parties at March 31, 2015 and December 31, 2014:

	March 31, 2015		December 31, 2014
	(in millions)
GSEs	$	2	$	2
Others	1		1
Total	$	3	$	3

In estimating our repurchase liability arising from breaches of representations and warranties, we consider historical losses on residual risks not covered by settlement agreements adjusted for any risk factors not captured in the historical losses.

The following table summarizes the change in our estimated repurchase liability for loans sold to the GSEs and other third parties during the three months ended March 31, 2015 and 2014 for obligations arising from the breach of representations and warranties associated with the sale of these loans:

Three Months Ended March 31,	2015			2014
	(in millions)
Balance at beginning of period	$	27		$	99
Increase (decrease) in liability recorded through earnings	(3		)	(34		)
Realized losses	(1		)	(29		)
Balance at end of period	$	23		$	36

Our remaining mortgage repurchase liability of $23 million at March 31, 2015 represents our best estimate of the loss that has been incurred including interest, resulting from various representations and warranties in the contractual provisions of our mortgage loan sales adjusted for settlements reached with counterparties. Because the level of mortgage loan repurchase losses is dependent upon economic factors, investor demand strategies and other external risk factors such as housing market trends that may change, the level of the liability for mortgage loan repurchase losses requires significant judgment. We have seen recent changes in investor demand trends, including significantly lower levels of demands received, and continue to evaluate our methods of determining the best estimate of loss based on these recent trends. As these estimates are influenced by factors outside our control, there is uncertainty inherent in these estimates making it reasonably possible that they could change. The range of reasonably possible losses in excess of our recorded repurchase liability is between zero and $25 million at March 31, 2015. This estimated range of reasonably possible losses was determined based upon modifying the assumptions utilized in our best estimate of probable losses to reflect what we believe to be reasonably possible adverse assumptions.

Pledged Assets  

Pledged assets included in the consolidated balance sheet consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Interest bearing deposits with banks	$	397	$	415
Trading assets(1)	2,809		2,886
Securities available-for-sale(2)	24,794		22,023
Securities held-to-maturity	3,410		3,602
Loans(3)	13,488		12,580
Other assets(4)	1,996		2,495
Total	$	46,894	$	44,001

⁽¹⁾  Trading assets are primarily pledged against liabilities associated with repurchase agreements.

⁽²⁾  Securities available-for-sale are primarily pledged against derivatives, public fund deposits, trust deposits and various short-term and long term borrowings, as well as providing capacity for potential secured borrowings from the Federal Home Loan Bank of New York ("FHLB") and the Federal Reserve Bank of New York.

⁽³⁾  Loans are primarily residential mortgage loans pledged against current and potential borrowings from the FHLB and the Federal Reserve Bank of New York.

⁽⁴⁾  Other assets represent cash on deposit with non-banks related to derivative collateral support agreements.

Debt securities pledged as collateral that can be sold or repledged by the secured party continue to be reported on the consolidated balance sheet. The fair value of securities available-for-sale that can be sold or repledged was $9,869 million and $8,348 million at March 31, 2015 and December 31, 2014, respectively. The fair value of trading assets that can be sold or repledged was $2,809 million and $2,886 million at March 31, 2015 and December 31, 2014, respectively.

The fair value of collateral we accepted but not reported on the consolidated balance sheet that can be sold or repledged was $8,608 million and $6,765 million at March 31, 2015 and December 31, 2014, respectively. This collateral was obtained under security resale agreements. Of this collateral, $1,182 million and $2,226 million has been sold or repledged as collateral under repurchase agreements or to cover short sales at March 31, 2015 and December 31, 2014, respectively.

Offsetting of Resale and Repurchase Agreements and Securities Borrowing and Lending Agreements

We enter into purchases and borrowings of securities under agreements to resell (resale agreements) and sales of securities under agreements to repurchase (repurchase agreements) identical or substantially the same securities. Resale and repurchase agreements are generally accounted for as secured lending and secured borrowing transactions, respectively.

The amounts advanced under resale agreements and the amounts borrowed under repurchase agreements are carried on the consolidated balance sheets at the amount advanced or borrowed, plus accrued interest to date. Interest earned on resale agreements is reported as interest income. Interest paid on repurchase agreements is reported as interest expense. We offset resale and repurchase agreements executed with the same counterparty under legally enforceable netting agreements that meet the applicable netting criteria as permitted by generally accepted accounting principles.

Repurchase agreements may require us to deposit cash or other collateral with the lender. In connection with resale agreements, it is our policy to obtain possession of collateral, which may include the securities purchased, with market value in excess of the principal amount loaned. The market value of the collateral subject to the resale and repurchase agreements is regularly monitored, and additional collateral is obtained or provided when appropriate, to ensure appropriate collateral coverage of these secured financing transactions.

The following table provides information about repurchase agreements and resell agreements that are subject to offset as of March 31, 2015 and December 31, 2014:

					Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet(1)	Net Amounts Presented in the Balance Sheet	Financial Instruments (2)	Cash Collateral Received / Pledged	Net Amount (3)
	(in millions)
As of March 31, 2015:
Assets:
Securities purchased under agreements to resell	$	8,608	1,643	6,965	6,965	—	$	—
Liabilities:
Securities sold under repurchase agreements	$	13,860	1,643	12,217	12,217	—	$	—
As of December 31, 2014:
Assets:
Securities purchased under agreements to resell	$	7,165	5,752	1,413	1,413	—	$	—
Liabilities:
Securities sold under repurchase agreements	$	13,459	5,752	7,707	7,707	—	$	—

⁽¹⁾  Represents recognized amount of resale and repurchase agreements with counterparties subject to legally enforceable netting agreements that meet the applicable netting criteria as permitted by generally accepted accounting principles.

⁽²⁾  Represents securities received or pledged to cover financing transaction exposures.

⁽³⁾  Represents the amount of our exposure that is not collateralized / covered by pledged collateral.

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Securities - Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) (Held-to-maturity Securities [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Held-to-maturity Securities [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Beginning balance of credit losses on held-to-maturity debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss)	$ 0	$ 61
Increase in credit losses for which an other-than-temporary impairment was previously recognized	0	2
Ending balance of credit losses on held-to-maturity debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss)	$ 0	$ 63

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Retained Earnings and Regulatory Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2015

Banking and Thrift [Abstract]

Capital Amounts and Ratios in Accordance With Current Banking Regulations

The following table summarizes the capital amounts and ratios of HSBC USA and HSBC Bank USA, calculated in accordance with banking regulations in effect as of March 31, 2015 and December 31, 2014:

	March 31, 2015							December 31, 2014
	Capital Amount		Well-Capitalized  Ratio(1)			Actual Ratio		Capital Amount		Well-Capitalized Ratio(1)			Actual Ratio
	(dollars are in millions)
Total capital ratio:(3)
HSBC USA	$	24,732	10.00	%		16.34	%	$	21,017	10.00	%		15.78	%
HSBC Bank USA	26,916		10.00			18.55		22,760		10.00			17.86
Tier 1 capital ratio:(3)
HSBC USA	19,089		6.00			12.61		15,205		6.00			11.41
HSBC Bank USA	22,246		8.00			15.33		17,215		8.00			13.51
Common equity Tier 1 ratio:(3)
HSBC USA	17,830		4.50		(2)	11.78		13,754		4.50		(2)	10.33
HSBC Bank USA	19,863		6.50			13.69		17,215		6.50			13.51
Tier 1 leverage ratio:
HSBC USA	19,089		4.00		(2)	9.91		15,205		4.00		(2)	8.54
HSBC Bank USA	22,246		5.00			12.02		17,215		5.00			10.06
Risk weighted assets:(3)
HSBC USA	151,347							133,211
HSBC Bank USA	145,121							127,456

⁽¹⁾  HSBC USA and HSBC Bank USA are categorized as "well-capitalized," as defined by their principal regulators. To be categorized as well-capitalized under regulatory guidelines, a banking institution must have the ratios reflected in the above table, and must not be subject to a directive, order, or written agreement to meet and maintain specific capital levels. The regulatory ratios for an institution to be well-capitalized under Basel III became effective beginning January 1, 2015 and the new ratios are shown for both periods.

⁽²⁾  There are no common equity Tier 1 or Tier 1 leverage ratio components in the definition of a well-capitalized bank holding company. The ratios shown in both periods are the required regulatory minimum ratios beginning in 2015.

⁽³⁾  At March 31, 2015, risk weighted assets are calculated under the Basel III Standardized Approach, which replaced the Basel I risk-based guidance for determining risk weighted assets beginning January 1, 2015.

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Allowance for Credit Losses - Summary of Changes in Allowance for Credit Losses and Related Loan Balance by Product - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Receivables [Abstract]
TDR Loans Carried At Lower Of Amortized Cost Or Fair Value Less Cost To Sell	$ 778	$ 763	$ 718

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Related Party Transactions - Summary of Related Party Transactions (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2014	Dec. 31, 2013
Assets:
Cash and due from banks	$ 972		$ 891		$ 1,155	$ 961
Interest bearing deposits with banks	32,249		30,807
Trading assets	22,444		21,092
Loans	81,458		77,741		68,897
Other assets	8,657		7,989
Total assets	201,594	[1]	185,539	[1]	187,174
Liabilities:
Deposits	119,094		116,118		105,531
Trading liabilities	11,288		8,164
Short-term borrowings	15,653		12,795
Long-term debt	29,420		27,524
Other	5,068		3,971
Total liabilities	180,523	[1]	168,572	[1]
HSBC Mexico [Member]
Assets:
Interest bearing deposits with banks	800
Affiliated Entity [Member]
Assets:
Cash and due from banks	171		140
Interest bearing deposits with banks	1,017	[2]	928	[2]
Trading assets	21,048	[3]	20,194	[3]
Loans	5,016		4,821
Other assets	1,082	[4]	983	[4]
Total assets	28,334		27,066
Liabilities:
Deposits	15,688		16,596
Trading liabilities	22,478	[3]	21,130	[3]
Short-term borrowings	1,676		847
Long-term debt	0		3,981
Other	387	[4]	459	[4]
Total liabilities	$ 40,229		$ 43,013

[1] The following table summarizes assets and liabilities related to our consolidated variable interest entities ("VIEs") as of March 31, 2015 and December 31, 2014 which are consolidated on our balance sheet. Assets and liabilities exclude intercompany balances that eliminate in consolidation. See Note 216, "Variable Interest Entities," for additional information. Assets: Other assets $372 million and $380 million. Total assets $372 million and $380 million respectively. Liabilities: Long-term debt $92 million and $92 million, Interest, taxes and other liabilities $86 million and $75 million. Total liabilities $178 million and $167 million, respectively.

[2] Includes interest bearing deposits with HSBC Mexico S.A. of $800 million at both March 31, 2015 and December 31, 2014, respectively.

[3] Trading assets and trading liabilities do not reflect the impact of netting which allows the offsetting of amounts relating to certain contracts if certain conditions are met. Trading assets and liabilities primarily consist of derivatives contracts.

[4] Other assets and other liabilities primarily consist of derivative contracts.

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Fair Value Option (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Option [Abstract]

Fair Value, Option, Quantitative Disclosures

The following table summarizes the fair value and unpaid principal balance for items we account for under FVO:

	Fair Value		Unpaid Principal Balance
	(in millions)
At March 31, 2015
Commercial loans held for sale	$	255	$	270
Fixed rate long-term debt	2,191		1,750
Hybrid instruments:
Structured deposits	6,948		6,768
Structured notes	6,842		6,466
At December 31, 2014
Commercial loans held for sale	$	384	$	390
Fixed rate long-term debt	2,179		1,750
Hybrid instruments:
Structured deposits	7,346		7,176
Structured notes	6,612		6,275

Components of Gain on Instruments at Fair Value and Related Derivatives

The following table summarizes the components of gain (loss) on instruments designated at fair value and related derivatives related to the changes in fair value of the financial instrument accounted for under FVO:

	Loans			Long-Term Debt			Hybrid Instruments			Total
	(in millions)
Three Months Ended March 31, 2015
Interest rate and other components(1)	$	—		$	(82	)	$	(288	)	$	(370	)
Credit risk component(2)(3)	(10		)	70			29			89
Total mark-to-market on financial instruments designated at fair value	(10		)	(12		)	(259		)	(281		)
Net realized loss on financial instruments	—			—			—			—
Mark-to-market on the related derivatives	—			70			279			349
Net realized gain on the related long-term debt derivatives	—			17			—			17
Gain (loss) on instruments designated at fair value and related derivatives	$	(10	)	$	75		$	20		$	85
Three Months Ended March 31, 2014
Interest rate and other components(1)	$	—		$	(82	)	$	(153	)	$	(235	)
Credit risk component(2)(3)	—			19			26			45
Total mark-to-market on financial instruments designated at fair value	—			(63		)	(127		)	(190		)
Net realized loss on financial instruments	—			—			—			—
Mark-to-market on the related derivatives	—			70			131			201
Net realized gain on the related long-term debt derivatives	—			17			—			17
Gain (loss) on instruments designated at fair value and related derivatives	$	—		$	24		$	4		$	28

⁽¹⁾  As it relates to hybrid instruments, interest rate and other components includes interest rate, foreign exchange and equity contract risks.

⁽²⁾  During the first quarter of 2015 and 2014, the gains in the credit risk component for long-term debt were attributable to the widening of our own credit spreads.

⁽³⁾  During the first quarter of 2015, the gain in the credit risk component for hybrid instruments is attributable primarily to the widening of our own credit spreads related to structured notes while the gain during the first quarter of 2014 was attributable primarily to the widening of our own credit spreads related to structured notes partially offset by the tightening of credit spreads on structured deposits.

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Securities - Distribution of maturities of debt securities with approximate yield of portfolio (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale amount within one year	$ 567
Available-for-sale yield within one year	3.16%
Available-for-sale amount after one but within five years	9,840
Available-for-sale yield after one but within five years	1.50%
Available-for-sale amount after five but within ten years	5,288
Available-for-sale yield after five but within ten years	2.46%
Available-for-sale amount after ten years	16,806
Available-for-sale yield after ten years	2.88%
Total fair value within one year	574
Total fair value after one but within five years	9,954
Total fair value after five but within ten years	5,479
Total fair value after ten years	16,924
Held-to-maturity amount within one year	3
Held-to-maturity yield within one year	5.09%
Held-to-maturity amount after one but within five years	101
Held-to-maturity yield after one but within five years	1.65%
Held-to-maturity after five but within ten years	668
Held-to-maturity yield after five but within ten years	2.55%
Held-to-maturity after ten years	13,243
Held-to-maturity yield after ten years	2.64%
Total fair value within one year	3
Total fair value after one but within five years	103
Total fair value after five but within ten years	685
Total fair value after ten years	13,559
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale amount within one year	0
Available-for-sale yield within one year	0.00%
Available-for-sale amount after one but within five years	4,124
Available-for-sale yield after one but within five years	0.70%
Available-for-sale amount after five but within ten years	3,227
Available-for-sale yield after five but within ten years	2.24%
Available-for-sale amount after ten years	3,369
Available-for-sale yield after ten years	2.81%
US Government sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale amount within one year	0
Available-for-sale yield within one year	0.00%
Available-for-sale amount after one but within five years	2,057
Available-for-sale yield after one but within five years	3.08%
Available-for-sale amount after five but within ten years	1,723
Available-for-sale yield after five but within ten years	2.77%
Available-for-sale amount after ten years	1,068
Available-for-sale yield after ten years	3.27%
Held-to-maturity amount within one year	0
Held-to-maturity yield within one year	0.00%
Held-to-maturity amount after one but within five years	92
Held-to-maturity yield after one but within five years	1.40%
Held-to-maturity after five but within ten years	615
Held-to-maturity yield after five but within ten years	2.52%
Held-to-maturity after ten years	4,573
Held-to-maturity yield after ten years	3.01%
US Government agency issued or guaranteed [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale amount within one year	0
Available-for-sale yield within one year	0.00%
Available-for-sale amount after one but within five years	9
Available-for-sale yield after one but within five years	4.22%
Available-for-sale amount after five but within ten years	42
Available-for-sale yield after five but within ten years	3.89%
Available-for-sale amount after ten years	11,784
Available-for-sale yield after ten years	2.84%
Held-to-maturity amount within one year	0
Held-to-maturity yield within one year	0.00%
Held-to-maturity amount after one but within five years	1
Held-to-maturity yield after one but within five years	7.66%
Held-to-maturity after five but within ten years	47
Held-to-maturity yield after five but within ten years	2.80%
Held-to-maturity after ten years	8,656
Held-to-maturity yield after ten years	2.44%
Obligations of U.S. states and political subdivision [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale amount within one year	0
Available-for-sale yield within one year	0.00%
Available-for-sale amount after one but within five years	96
Available-for-sale yield after one but within five years	4.12%
Available-for-sale amount after five but within ten years	296
Available-for-sale yield after five but within ten years	2.96%
Available-for-sale amount after ten years	350
Available-for-sale yield after ten years	3.41%
Held-to-maturity amount within one year	3
Held-to-maturity yield within one year	5.09%
Held-to-maturity amount after one but within five years	8
Held-to-maturity yield after one but within five years	3.93%
Held-to-maturity after five but within ten years	6
Held-to-maturity yield after five but within ten years	3.83%
Held-to-maturity after ten years	4
Held-to-maturity yield after ten years	5.34%
Asset backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale amount within one year	0
Available-for-sale yield within one year	0.00%
Available-for-sale amount after one but within five years	0
Available-for-sale yield after one but within five years	0.00%
Available-for-sale amount after five but within ten years	0
Available-for-sale yield after five but within ten years	0.00%
Available-for-sale amount after ten years	235
Available-for-sale yield after ten years	3.20%
Held-to-maturity amount within one year	0
Held-to-maturity yield within one year	0.00%
Held-to-maturity amount after one but within five years	0
Held-to-maturity yield after one but within five years	0.00%
Held-to-maturity after five but within ten years	0
Held-to-maturity yield after five but within ten years	0.00%
Held-to-maturity after ten years	10
Held-to-maturity yield after ten years	6.40%
Foreign debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale amount within one year	567
Available-for-sale yield within one year	3.16%
Available-for-sale amount after one but within five years	3,554
Available-for-sale yield after one but within five years	1.42%
Available-for-sale amount after five but within ten years	0
Available-for-sale yield after five but within ten years	0.00%
Available-for-sale amount after ten years	$ 0
Available-for-sale yield after ten years	0.00%

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Loans - Summary of Criticized Assets for Commercial Loans (Detail) (Commercial Loans [Member], USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	$ 4,355	$ 3,787
Construction and Other Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	474	547
Business and Corporate Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	1,668	1,261
Global Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	2,206	1,972
Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	7	7
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	3,549	3,082
Special Mention [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	254	310
Special Mention [Member] | Business and Corporate Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	1,286	1,001
Special Mention [Member] | Global Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	2,009	1,770
Special Mention [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	0	1
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	780	676
Substandard [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	219	230
Substandard [Member] | Business and Corporate Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	358	238
Substandard [Member] | Global Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	197	202
Substandard [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	6	6
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	26	29
Doubtful [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	1	7
Doubtful [Member] | Business and Corporate Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	24	22
Doubtful [Member] | Global Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	0	0
Doubtful [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases doubtful receivable commercial net of deferred income	$ 1	$ 0

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Guarantee Arrangements and Pledged Assets and Collateral - Additional Information (Detail) (USD $)	36 Months Ended	3 Months Ended
	Dec. 31, 2007	Mar. 31, 2015		Mar. 31, 2014	Dec. 31, 2014		Dec. 31, 2013
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted		$ 127,512,000,000			$ 128,894,000,000
Collateral accepted under security repurchase agreements but not reported on the balance sheet that can be sold or repledged, fair value		8,608,000,000			6,765,000,000
Collateral accepted under security repurchase agreements that has been sold or repledged under repurchase agreements or to cover short sales		1,182,000,000			2,226,000,000
Hsbc Securities [Member]
Guarantor Obligations [Line Items]
Whole loan securitization	24,000,000,000
Securities available-for-sale [Member]
Guarantor Obligations [Line Items]
Securities pledged as collateral that can be sold or repledged by the secured party, fair value		9,869,000,000			8,348,000,000
Trading Securities [Member]
Guarantor Obligations [Line Items]
Securities pledged as collateral that can be sold or repledged by the secured party, fair value		2,809,000,000			2,886,000,000
Financial standby letters of credit, net of participations [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted		6,174,000,000	[1],[2]		5,358,000,000	[1],[2]
Performance (non-financial) guarantees, net of participations [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted		2,943,000,000	[1],[2]		3,083,000,000	[1],[2]
Liquidity asset purchase agreements [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted		2,710,000,000	[1]		2,685,000,000	[1]
Mortgage Securitization Activity Related Litigation [Member] | Hsbc Securities [Member]
Guarantor Obligations [Line Items]
Mortgage Securitization Outstanding Loan Purchase And Sold		5,700,000,000			5,700,000,000
Obligation to Repurchase Receivables Sold [Member]
Guarantor Obligations [Line Items]
Settlement of liability		1,000,000		29,000,000
Loss Contingency Accrual		23,000,000		36,000,000	27,000,000		99,000,000
Range of possible losses in excess of recorded repurchase liability, minimum		0
Range of possible losses in excess of recorded repurchase liability, maximum		25,000,000
Obligation to Repurchase Receivables Sold [Member] | Federal Home Loan Mortgage Corporation [Member]
Guarantor Obligations [Line Items]
Settlement of liability				25,000,000
Release of repurchase reserves				34,000,000
Other liabilities [Member]
Guarantor Obligations [Line Items]
Allowance for credit losses on unfunded standby letters of credit		17,000,000			16,000,000
Other liabilities [Member] | Standby Letters of Credit [Member]
Guarantor Obligations [Line Items]
Deferred fees on standby letters of credit		$ 52,000,000			$ 50,000,000

[1] For standby letters of credit and liquidity asset purchase agreements, maximum loss represents losses to be recognized assuming the letter of credit and liquidity facilities have been fully drawn and the obligors have defaulted with zero recovery.

[2] Includes $880 million and $937 million issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

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Loans - Summary of TDR and Related Credit Loss Reserves for TDR Loans - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Receivables [Abstract]
Other loans included in impaired loans apart from TDR loans	$ 79	$ 85
Residential Mortgage Loan TDR Carried At Lower Of Amortized Cost Or Fair Value Less Cost To Sell	778	763	718
Non Accrual loans included in TDR loan	$ 451	$ 485

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Trading Assets and Liabilities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Derivatives included in trading assets, amount offset	$ 6,573	[1],[2]	$ 4,811	[1],[2]
Derivatives included in trading liabilities, amount offset	1,084	[1],[2]	1,724	[1],[2]
Trading Assets [Member]
Schedule of Available-for-sale Securities [Line Items]
Derivatives included in trading assets, amount offset	6,573		4,811
Trading Liabilities [Member]
Schedule of Available-for-sale Securities [Line Items]
Derivatives included in trading liabilities, amount offset	$ 1,084		$ 1,724

[1] Represents the netting of cash collateral posted and received by counterparty under enforceable credit support agreements.

[2] Netting is performed at a counterparty level in cases where enforceable master netting and credit support agreements are in place, regardless of the type of derivative instrument. Therefore, we have not attempted to allocate netting to the different types of derivative instruments shown in the table above.

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Organization and Presentation

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Presentation

Organization and Presentation

HSBC USA Inc. ("HSBC USA"), incorporated under the laws of Maryland, is a New York State based bank holding company and an indirect wholly-owned subsidiary of HSBC North America Holdings Inc. ("HSBC North America"), which is an indirect wholly-owned subsidiary of HSBC Holdings plc ("HSBC" and, together with its subsidiaries, "HSBC Group"). The accompanying unaudited interim consolidated financial statements of HSBC USA and its subsidiaries (collectively "HUSI") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, as well as in accordance with predominant practices within the banking industry. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods have been made. HUSI may also be referred to in these notes to the consolidated financial statements as "we", "us" or "our". These unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014 (the "2014 Form 10-K"). Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

The preparation of financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Interim results should not be considered indicative of results in future periods.

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Guarantee Arrangements and Pledged Assets and Collateral - Offsetting of Resale and Repurchase Agreements and Securities Borrowing and Lending Agreements (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Securities purchased under agreements to resell, Gross Amounts Recognized	$ 8,608		$ 7,165
Securities purchased under agreements to resell, Gross Amounts Offset in the Balance Sheet	1,643	[1]	5,752	[1]
Securities Purchased under Agreements to Resell	6,965		1,413
Securities purchased under agreements to resell, Gross Amounts Not Offset in the Balance Sheet, Financial Instruments	6,965	[2]	1,413	[2]
Securities purchased under agreements to resell, Gross Amounts Not Offset in the Balance Sheet, Cash Collateral Receive / Pledged	0		0
Securities purchased under agreements to resell, Net amount	0	[3]	0	[3]
Securities sold under repurchase agreements, Gross Amounts Recognized	13,860		13,459
Securities sold under repurchase agreements, Gross Amounts Offset in the Balance Sheet	1,643	[1]	5,752	[1]
Securities sold under repurchase agreements, Net Amounts Presented in the Balance Sheet	12,217		7,707
Securities sold under repurchase agreements, Gross Amounts Not Offset in the Balance sheet, Financial Instruments	12,217	[2]	7,707	[2]
Securities sold under repurchase agreements, Gross Amounts Not Offset in the Balance Sheet, Cash Collateral Received / Pledged	0		0
Securities sold under repurchase agreements, Net amount	$ 0	[3]	$ 0	[3]

[1] Represents recognized amount of resale and repurchase agreements with counterparties subject to legally enforceable netting agreements that meet the applicable netting criteria as permitted by generally accepted accounting principles.

[2] Represents securities received or pledged to cover financing transaction exposures.

[3] Represents the amount of our exposure that is not collateralized / covered by pledged collateral.

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Loans - Trouble Debt Restructuring Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Financing Receivable, Modifications [Line Items]
Average balance of TDR loans	$ 1,225	$ 1,275
Interest income recognized on TDR loans	11	15
Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Average balance of TDR loans	223	326
Interest income recognized on TDR loans	2	6
Commercial Loans [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Average balance of TDR loans	182	264
Interest income recognized on TDR loans	1	6
Commercial Loans [Member] | Business and Corporate Banking [Member]
Financing Receivable, Modifications [Line Items]
Average balance of TDR loans	34	19
Interest income recognized on TDR loans	1	0
Commercial Loans [Member] | Global Banking [Member]
Financing Receivable, Modifications [Line Items]
Average balance of TDR loans	7	25
Commercial Loans [Member] | Other Commercial [Member]
Financing Receivable, Modifications [Line Items]
Average balance of TDR loans	0	18
Consumer Loans [Member]
Financing Receivable, Modifications [Line Items]
Average balance of TDR loans	1,002	949
Interest income recognized on TDR loans	9	9
Consumer Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Modifications [Line Items]
Average balance of TDR loans	976	922
Interest income recognized on TDR loans	9	9
Consumer Loans [Member] | Home Equity Line of Credit [Member]
Financing Receivable, Modifications [Line Items]
Average balance of TDR loans	20	19
Consumer Loans [Member] | Credit Cards [Member]
Financing Receivable, Modifications [Line Items]
Average balance of TDR loans	$ 6	$ 8

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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2015

Variable Interest Entities [Abstract]

Summary of Assets and Liabilities Related to Consolidated Variable Interest Entities

The following table summarizes assets and liabilities related to our consolidated VIEs as of March 31, 2015 and December 31, 2014 which are consolidated on our balance sheets. Assets and liabilities exclude intercompany balances that eliminate on consolidation.

	March 31, 2015				December 31, 2014
	Consolidated Assets		Consolidated Liabilities		Consolidated Assets		Consolidated Liabilities
	(in millions)
Low income housing limited liability partnership:
Other assets	$	372	$	—	$	380	$	—
Long-term debt	—		92		—		92
Interest, taxes and other liabilities	—		86		—		75
Total	$	372	$	178	$	380	$	167

Variable Interests Held by Us and Our Maximum Exposure to Loss Rising From Our Involvements in Those VIEs

The following table provides additional information on these unconsolidated VIEs, including the variable interests held by us and our maximum exposure to loss arising from our involvements in these VIEs, as of March 31, 2015 and December 31, 2014:

	Variable Interests Held Classified as Assets		Variable Interests Held Classified as Liabilities		Total Assets in Unconsolidated VIEs		Maximum Exposure to Loss
	(in millions)
At March 31, 2015
Asset-backed commercial paper conduits	$	50	$	—	$	10,761	$	2,710
Structured note vehicles	2,848		7		5,876		5,868
Low income housing partnerships	44		38		141		44
Total	$	2,942	$	45	$	16,778	$	8,622
At December 31, 2014
Asset-backed commercial paper conduits	$	29	$	—	$	10,984	$	2,685
Structured note vehicles	2,841		7		5,867		5,860
Low income housing partnerships	44		39		141		44
Total	$	2,914	$	46	$	16,992	$	8,589

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Fair Value Measurements Fair Value Measurements (Policies)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Hierarchy

Fair Value Hierarchy  The Fair Value Framework establishes a three-tiered fair value hierarchy as follows:

Level 1 quoted market price - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 valuation technique using observable inputs - Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are inactive, and measurements determined using valuation models where all significant inputs are observable, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 valuation technique with significant unobservable inputs - Level 3 inputs are unobservable inputs for the asset or liability and include situations where fair values are measured using valuation techniques based on one or more significant unobservable input.

Classification within the fair value hierarchy is based on whether the lowest hierarchical level input that is significant to the fair value measurement is observable. As such, the classification within the fair value hierarchy is dynamic and can be transferred to other hierarchy levels in each reporting period. Transfers between leveling categories are assessed, determined and recognized at the end of each reporting period.

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New Accounting Pronouncements

3 Months Ended

Mar. 31, 2015

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

The following new accounting pronouncements were adopted effective January 1, 2015:

Ÿ Residential Real Estate Collateralized Consumer Mortgage Loans In January 2014, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") to define an in-substance repossession or foreclosure of residential real estate for purposes of determining whether or not an entity should derecognize a consumer mortgage loan collateralized by that real estate. Under the standard, an in-substance repossession or foreclosure has occurred if the entity has obtained legal title to the real estate as a result of the completion of a foreclosure (even if the borrower has rights to reclaim the property after the foreclosure upon the payment of certain amounts specified by law), or if, through a deed in lieu of foreclosure or other legal agreement, the borrower conveys all interest in the real estate to the entity in satisfaction of the loan. The standard also requires entities to disclose both the amount of foreclosed residential real estate held as well as the recorded investment in consumer mortgage loans collateralized by residential real estate that the entity is in the process of foreclosing upon. We adopted this guidance on January 1, 2015. The adoption of this standard did not have any impact on our financial statements. See Note 4, "Loans," for the new disclosure required by this standard.

• Repurchase to Maturity Transactions, Repurchase Financings, and Disclosures In June 2014, the FASB issued an ASU which changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting and requires secured borrowing accounting for the repurchase agreement in a contemporaneous repurchase financing arrangement. The accounting changes in the ASU are effective for all annual and interim periods beginning January 1, 2015. The ASU also requires new disclosure about repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings to be presented for annual periods beginning January 1, 2015, and for interim periods beginning April 1, 2015. The adoption of this guidance did not have a significant impact on our financial position or results of operations.

The following are accounting pronouncements which will be adopted in future periods:

Ÿ Recognition of Revenue from Contracts with Customers In May 2014, the FASB issued an ASU which provides a principles-based framework for revenue recognition that supersedes virtually all previously issued revenue recognition guidance. Additionally, the ASU requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The core principle of the five-step revenue recognition framework is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU will be effective for all annual and interim periods beginning January 1, 2017. The amendments in the ASU may be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of adoption recognized in equity at the date of initial application. We are currently evaluating the potential impact of adopting this ASU, including determining which transition method to apply.

Ÿ Amendments to the Consolidation Analysis In February 2015, the FASB issued an ASU which rescinds the deferral of VIE consolidation guidance for reporting entities with interests in certain investment funds and provides a new scope exception to registered money market funds and similar unregistered money market funds. The ASU makes several other amendments including a) the elimination of certain criteria previously used for determining whether fees paid to a decision maker represent a variable interest; b) revising the consolidation model for limited partnerships and similar entities which could be variable interest entities or voting interest entities; c) excluding certain fees paid to a decision maker from the risk and benefit test in the primary beneficiary determination if certain conditions are met; and d) reduces the application of the related party guidance for VIEs. The ASU will be effective for all annual and interim periods beginning January 1, 2016 and the guidance can be applied either retrospectively or by recording a cumulative effect adjustment to equity with early adoption permitted. We are currently evaluating the potential impact of adopting this ASU, but currently do not expect the adoption of this guidance will have a significant impact on our financial position or results of operations.

There have been no additional accounting pronouncements issued during the first quarter of 2015 that are expected to have or could have a significant impact on our financial position or results of operations.

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Related Party Transactions - Additional Information (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Derivative, notional amount	$ 4,737,184,000,000		$ 4,829,655,000,000
HSBC Investment Bahamas [Member]
Related Party Transaction [Line Items]
Maximum borrowing capacity	805,000,000		805,000,000
Amount outstanding under the loan agreement	0		0
HSBC North America Inc. HNAI [Member]
Related Party Transaction [Line Items]
Maximum borrowing capacity	150,000,000		150,000,000
Amount outstanding under the loan agreement	0		0
HSBC Finance Corporation [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	3,014,000,000		3,014,000,000
HSBC Finance Corporation [Member] | Extended Uncommitted Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Debt term	364 days
Extended loans and lines of credit	5,000,000,000.0		5,000,000,000
Loan And Lease Receivable Revolving Line Of Credit Outstanding	3,000,000,000		3,000,000,000
Maximum maturity for borrowings under uncommitted revolving credit agreement	5 years
Credit agreement, amount maturing September 2017	512,000,000
Credit agreement amount maturing January 2018	1,500,000,000
Credit agreement amount maturing September 2018	1,000,000,000
HSBC Finance Corporation [Member] | Extended committed revolving credit facility [Member]
Related Party Transaction [Line Items]
Extended loans and lines of credit	1,000,000,000		1,000,000,000
Loan And Lease Receivable Revolving Line Of Credit Outstanding	0		0
HMUS [Member]
Related Party Transaction [Line Items]
Extended loans and lines of credit	6,700,000,000		6,700,000,000
Loans and Leases Receivable, Related Parties	764,000,000		563,000,000
Loan And Lease Receivable Revolving Line Of Credit Outstanding	764,000,000		563,000,000
HSBC Bank Brasil [Member]
Related Party Transaction [Line Items]
Extended loans and lines of credit	1,200,000,000		1,200,000,000
Loans and Leases Receivable, Related Parties	1,110,000,000		1,108,000,000
Loan And Lease Receivable Revolving Line Of Credit Outstanding	1,100,000,000		1,100,000,000
Other Affiliates [Member]
Related Party Transaction [Line Items]
Extended loans and lines of credit	2,300,000,000		2,300,000,000
Loans and Leases Receivable, Related Parties	128,000,000		136,000,000
Loan And Lease Receivable Revolving Line Of Credit Outstanding	0		0
Regency [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Liquidity Facility, Notional Amount	2,700,000,000
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	5,016,000,000		4,821,000,000
Derivative, notional amount	1,063,200,000,000		1,082,600,000,000
Fair value of derivative assets and liabilities	1,089,000,000		1,166,000,000
Residential Mortgage [Member] | HSBC Finance Corporation [Member]
Related Party Transaction [Line Items]
Carrying Amount At Period End of Residential Mortgage Loans Serviced By HSBC Finance	804,000,000		837,000,000
90-Day LIBOR Plus Spread [Member] | Floating Rate Notes [Member] | Hnah [Member] | Senior debt [Member]
Related Party Transaction [Line Items]
Senior debt			4,000,000,000.0
Support Services From Affiliates [Member] | Affiliated Entity [Member]
Related Party Transaction [Line Items]
Rent from related party	$ 15,000,000	$ 14,000,000

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Loans - Summary of Past Due Status of Loans (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	$ 451		$ 503
Days Past Due, 90 + days	991		1,043
Total Days Past Due, 30 Days or More	1,442		1,546
Current	80,016	[1]	76,195	[1]
Total loans	81,458		77,741		68,897
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	59		72
Days Past Due, 90 + days	40		37
Total Days Past Due, 30 Days or More	99		109
Current	61,548	[1]	57,978	[1]
Total loans	61,647		58,087
Commercial Loans [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	40		25
Days Past Due, 90 + days	30		22
Total Days Past Due, 30 Days or More	70		47
Current	10,831	[1]	10,253	[1]
Total loans	10,901		10,300		9,165
Commercial Loans [Member] | Business and Corporate Banking [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	13		32
Days Past Due, 90 + days	4		9
Total Days Past Due, 30 Days or More	17		41
Current	19,234	[1]	17,778	[1]
Total loans	19,251		17,819		15,698
Commercial Loans [Member] | Global Banking [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	0		0
Days Past Due, 90 + days	0		0
Total Days Past Due, 30 Days or More	0		0
Current	28,029	[1]	26,387	[1]
Total loans	28,029		26,387		21,979
Commercial Loans [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	6		15
Days Past Due, 90 + days	6		6
Total Days Past Due, 30 Days or More	12		21
Current	3,454	[1]	3,560	[1]
Total loans	3,466		3,581		3,051
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	392		431
Days Past Due, 90 + days	951		1,006
Total Days Past Due, 30 Days or More	1,343		1,437
Current	18,468	[1]	18,217	[1]
Total loans	19,811		19,654
Consumer Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	355		390
Days Past Due, 90 + days	879		931
Total Days Past Due, 30 Days or More	1,234		1,321
Current	15,757	[1]	15,340	[1]
Total loans	16,991		16,661		15,900
Consumer Loans [Member] | Home Equity Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	19		21
Days Past Due, 90 + days	54		56
Total Days Past Due, 30 Days or More	73		77
Current	1,643	[1]	1,707	[1]
Total loans	1,716		1,784		1,938
Consumer Loans [Member] | Credit Cards [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	10		11
Days Past Due, 90 + days	10		10
Total Days Past Due, 30 Days or More	20		21
Current	660	[1]	699	[1]
Total loans	680		720		683
Consumer Loans [Member] | Other consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Days Past Due, 30-89 days	8		9
Days Past Due, 90 + days	8		9
Total Days Past Due, 30 Days or More	16		18
Current	408	[1]	471	[1]
Total loans	$ 424		$ 489		$ 483

[1] Loans less than 30 days past due are presented as current.

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Guarantee Arrangements and Pledged Assets and Collateral (Tables)

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Carrying Value and Contractual Amounts of our Sell Protection Credit Derivatives and Major Off-Balance Sheet Guarantee Arrangements

The following table presents total carrying value and contractual amounts of our sell protection credit derivatives and major off-balance sheet guarantee arrangements as of March 31, 2015 and December 31, 2014. Following the table is a description of the various arrangements.

	March 31, 2015					December 31, 2014
	Carrying Value			Notional / Maximum Exposure to Loss		Carrying Value			Notional / Maximum Exposure to Loss
	(in millions)
Credit derivatives(1)(4)	$	(1,776	)	$	115,685	$	(1,484	)	$	117,768
Financial standby letters of credit, net of participations(2)(3)	—			6,174		—			5,358
Performance standby letters of credit, net of participations(2)(3)	—			2,943		—			3,083
Liquidity asset purchase agreements(3)	—			2,710		—			2,685
Total	$	(1,776	)	$	127,512	$	(1,484	)	$	128,894

⁽¹⁾  Includes $32,035 million and $32,688 million of notional issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  Includes $880 million and $937 million issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

⁽³⁾  For standby letters of credit and liquidity asset purchase agreements, maximum loss represents losses to be recognized assuming the letter of credit and liquidity facilities have been fully drawn and the obligors have defaulted with zero recovery.

⁽⁴⁾  For credit derivatives, the maximum loss is represented by the notional amounts without consideration of mitigating effects from collateral or recourse arrangements.

Net Credit Derivative Positions

The following table summarizes our net credit derivative positions as of March 31, 2015 and December 31, 2014:

	March 31, 2015					December 31, 2014
	Carrying / Fair Value			Notional		Carrying / Fair Value			Notional
	(in millions)
Sell-protection credit derivative positions	$	(1,776	)	$	115,685	$	(1,484	)	$	117,768
Buy-protection credit derivative positions	2,142			121,864		1,741			122,969
Net position(1)	$	366		$	6,179	$	257		$	5,201

⁽¹⁾  Positions are presented net in the table above to provide a complete analysis of our risk exposure and depict the way we manage our credit derivative portfolio. The offset of the sell-protection credit derivatives against the buy-protection credit derivatives may not be legally binding in the absence of master netting agreements with the same counterparty. Furthermore, the credit loss triggering events for individual sell protection credit derivatives may not be the same or occur in the same period as those of the buy protection credit derivatives thereby not providing an exact offset.

Summary of Credit Ratings of Credit Risk Related Guarantees

The following table summarizes the credit ratings of credit risk related guarantees including the credit ratings of counterparties against which we sold credit protection and financial standby letters of credit as of March 31, 2015 as an indicative proxy of payment risk:

	Average Life (in years)	Credit Ratings of the Obligors or the Transactions
Notional/Contractual Amounts		Investment       Grade		Non-Investment Grade		Total
	(dollars are in millions)
Sell-protection Credit Derivatives(1)
Single name credit default swaps ("CDS")	2.7	$	72,959	$	19,139	$	92,098
Structured CDS	1.8	6,111		652		6,763
Index credit derivatives	2.2	4,840		8,288		13,128
Total return swaps	2.7	3,299		397		3,696
Subtotal		87,209		28,476		115,685
Standby Letters of Credit(2)	1.1	6,717		2,400		9,117
Total		$	93,926	$	30,876	$	124,802

⁽¹⁾  The credit ratings in the table represent external credit ratings for classification as investment grade and non-investment grade.

⁽²⁾  External ratings for most of the obligors are not available. Presented above are the internal credit ratings which are developed using similar methodologies and rating scale equivalent to external credit ratings for purposes of classification as investment grade and non-investment grade.

Outstanding Repurchase Demands Received From GSEs and Other Third Parties

The following table provides information about outstanding repurchase demands received from GSEs and other third parties at March 31, 2015 and December 31, 2014:

	March 31, 2015		December 31, 2014
	(in millions)
GSEs	$	2	$	2
Others	1		1
Total	$	3	$	3

Summary of Change in Estimated Repurchase Liability for Loans Sold to GSEs and Other Third Parties

The following table summarizes the change in our estimated repurchase liability for loans sold to the GSEs and other third parties during the three months ended March 31, 2015 and 2014 for obligations arising from the breach of representations and warranties associated with the sale of these loans:

Three Months Ended March 31,	2015			2014
	(in millions)
Balance at beginning of period	$	27		$	99
Increase (decrease) in liability recorded through earnings	(3		)	(34		)
Realized losses	(1		)	(29		)
Balance at end of period	$	23		$	36

Summary of Pledged Assets Included in Consolidated Balance Sheet

Pledged assets included in the consolidated balance sheet consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Interest bearing deposits with banks	$	397	$	415
Trading assets(1)	2,809		2,886
Securities available-for-sale(2)	24,794		22,023
Securities held-to-maturity	3,410		3,602
Loans(3)	13,488		12,580
Other assets(4)	1,996		2,495
Total	$	46,894	$	44,001

⁽¹⁾  Trading assets are primarily pledged against liabilities associated with repurchase agreements.

⁽²⁾  Securities available-for-sale are primarily pledged against derivatives, public fund deposits, trust deposits and various short-term and long term borrowings, as well as providing capacity for potential secured borrowings from the Federal Home Loan Bank of New York ("FHLB") and the Federal Reserve Bank of New York.

⁽³⁾  Loans are primarily residential mortgage loans pledged against current and potential borrowings from the FHLB and the Federal Reserve Bank of New York.

⁽⁴⁾  Other assets represent cash on deposit with non-banks related to derivative collateral support agreements.

Offsetting Assets and Liabilities

The following table provides information about repurchase agreements and resell agreements that are subject to offset as of March 31, 2015 and December 31, 2014:

					Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet(1)	Net Amounts Presented in the Balance Sheet	Financial Instruments (2)	Cash Collateral Received / Pledged	Net Amount (3)
	(in millions)
As of March 31, 2015:
Assets:
Securities purchased under agreements to resell	$	8,608	1,643	6,965	6,965	—	$	—
Liabilities:
Securities sold under repurchase agreements	$	13,860	1,643	12,217	12,217	—	$	—
As of December 31, 2014:
Assets:
Securities purchased under agreements to resell	$	7,165	5,752	1,413	1,413	—	$	—
Liabilities:
Securities sold under repurchase agreements	$	13,459	5,752	7,707	7,707	—	$	—

⁽¹⁾  Represents recognized amount of resale and repurchase agreements with counterparties subject to legally enforceable netting agreements that meet the applicable netting criteria as permitted by generally accepted accounting principles.

⁽²⁾  Represents securities received or pledged to cover financing transaction exposures.

⁽³⁾  Represents the amount of our exposure that is not collateralized / covered by pledged collateral.

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Trading Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Trading Assets And Liabilities [Abstract]

Trading Assets and Liabilities

Trading assets and liabilities consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Trading assets:
U.S. Treasury	$	2,912	$	2,675
U.S. Government agency issued or guaranteed	4		3
U.S. Government sponsored enterprises(1)	103		45
Obligations of U.S. states and political subdivisions	586		591
Asset backed securities	480		481
Corporate and foreign bonds	8,525		9,681
Other securities	18		22
Precious metals	3,310		1,992
Derivatives, net	6,506		5,602
	$	22,444	$	21,092
Trading liabilities:
Securities sold, not yet purchased	$	646	$	683
Payables for precious metals	—		22
Derivatives, net	10,642		7,459
	$	11,288	$	8,164

⁽¹⁾  Consists of mortgage backed securities of $103 million and $45 million issued or guaranteed by the Federal National Mortgage Association ("FNMA") at March 31, 2015 and December 31, 2014, respectively.

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Securities (Tables)

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Fair Value of the Securities Available-for-Sale and Held-to-Maturity

Our securities available-for-sale and securities held-to-maturity portfolios consisted of the following:

March 31, 2015	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in millions)
Securities available-for-sale:
U.S. Treasury	$	10,720	$	235	$	(56	)	$	10,899
U.S. Government sponsored enterprises:(1)
Mortgage-backed securities	670		8		(1		)	677
Collateralized mortgage obligations	35		—		—			35
Direct agency obligations	4,143		206		(6		)	4,343
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	11,457		93		(26		)	11,524
Collateralized mortgage obligations	378		7		(1		)	384
Obligations of U.S. states and political subdivisions	742		10		(4		)	748
Asset backed securities collateralized by:
Commercial mortgages	29		—		—			29
Home equity	94		—		(9		)	85
Other	112		—		(18		)	94
Foreign debt securities(2)	4,121		9		(17		)	4,113
Equity securities	162		3		—			165
Total available-for-sale securities	$	32,663	$	571	$	(138	)	$	33,096
Securities held-to-maturity:
U.S. Government sponsored enterprises:(3)
Mortgage-backed securities	$	5,280	$	177	$	(1	)	$	5,456
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	3,482		59		—			3,541
Collateralized mortgage obligations	5,222		100		(2		)	5,320
Obligations of U.S. states and political subdivisions	21		1		—			22
Asset-backed securities collateralized by residential mortgages	10		1		—			11
Total held-to-maturity securities	$	14,015	$	338	$	(3	)	$	14,350

December 31, 2014	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in millions)
Securities available-for-sale:
U.S. Treasury	$	11,793	$	276	$	(58	)	$	12,011
U.S. Government sponsored enterprises:(1)
Mortgage-backed securities	520		5		(1		)	524
Collateralized mortgage obligations	35		—		—			35
Direct agency obligations	3,995		217		(6		)	4,206
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	7,985		101		(27		)	8,059
Collateralized mortgage obligations	329		3		(2		)	330
Obligations of U.S. states and political subdivisions	661		10		(4		)	667
Asset backed securities collateralized by:
Commercial mortgages	43		—		—			43
Home equity	97		—		(8		)	89
Other	110		—		(16		)	94
Foreign debt securities(2)	3,921		6		(12		)	3,915
Equity securities	165		3		(1		)	167
Total available-for-sale securities	$	29,654	$	621	$	(135	)	$	30,140
Securities held-to-maturity:
U.S. Government sponsored enterprises:(3)
Mortgage-backed securities	$	4,868	$	120	$	(1	)	$	4,987
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	3,700		53		(1		)	3,752
Collateralized mortgage obligations	4,867		54		(1		)	4,920
Obligations of U.S. states and political subdivisions	23		1		—			24
Asset-backed securities collateralized by residential mortgages	11		1		—			12
Total held-to-maturity securities	$	13,469	$	229	$	(3	)	$	13,695

⁽¹⁾  Includes securities at amortized cost of $672 million and $521 million issued or guaranteed by FNMA at March 31, 2015 and December 31, 2014, respectively, and $33 million and $34 million issued or guaranteed by the Federal Home Loan Mortgage Corporation ("FHLMC") at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  At March 31, 2015 and December 31, 2014, foreign debt securities consisted of $1,053 million and $689 million, respectively, of securities fully backed by foreign governments. The remainder of foreign debt securities represents public sector entity, bank or corporate debt.

⁽³⁾  Includes securities at amortized cost of $3,539 million and $3,185 million issued or guaranteed by FNMA at March 31, 2015 and December 31, 2014, respectively, and $1,741 million and $1,683 million issued and guaranteed by FHLMC at March 31, 2015 and December 31, 2014, respectively.

Gross Unrealized Losses and Related Fair Values

The following table summarizes gross unrealized losses and related fair values as of March 31, 2015 and December 31, 2014 classified as to the length of time the losses have existed:

	One Year or Less						Greater Than One Year
March 31, 2015	Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment		Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment
	(dollars are in millions)
Securities available-for-sale:
U.S. Treasury	25	$	(46	)	$	4,178	5	$	(10	)	$	750
U.S. Government sponsored enterprises	9	(4		)	352		17	(3		)	160
U.S. Government agency issued or guaranteed	5	(20		)	889		8	(7		)	131
Obligations of U.S. states and political subdivisions	38	(3		)	220		21	(1		)	168
Asset backed securities	1	—			—		9	(27		)	196
Foreign debt securities	8	(16		)	3,055		1	(1		)	200
Equity securities	1	—			159		—	—			—
Securities available-for-sale	87	$	(89	)	$	8,853	61	$	(49	)	$	1,605
Securities held-to-maturity:
U.S. Government sponsored enterprises	15	$	(1	)	$	172	50	$	—		$	—
U.S. Government agency issued or guaranteed	101	(2		)	310		768	—			1
Obligations of U.S. states and political subdivisions	1	—			—		3	—			1
Securities held-to-maturity	117	$	(3	)	$	482	821	$	—		$	2

	One Year or Less						Greater Than One Year
December 31, 2014	Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment		Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment
	(dollars are in millions)
Securities available-for-sale:
U.S. Treasury	6	$	(47	)	$	3,459	4	$	(11	)	$	1,546
U.S. Government sponsored enterprises	2	(1		)	128		24	(6		)	391
U.S. Government agency issued or guaranteed	30	(20		)	2,046		10	(9		)	213
Obligations of U.S. states and political subdivisions	34	(2		)	146		23	(2		)	194
Asset backed securities	1	—			3		9	(24		)	199
Foreign debt securities	5	(9		)	1,805		3	(3		)	898
Equity securities	1	(1		)	158		—	—			—
Securities available-for-sale	79	$	(80	)	$	7,745	73	$	(55	)	$	3,441
Securities held-to-maturity:
U.S. Government sponsored enterprises	144	$	(1	)	$	394	47	$	—		$	—
U.S. Government agency issued or guaranteed	103	(2		)	985		800	—			2
Obligations of U.S. states and political subdivisions	—	—			—		3	—			1
Securities held-to-maturity	247	$	(3	)	$	1,379	850	$	—		$	3

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table summarizes the rollforward of credit losses which have been recognized in income on other-than-temporary impaired securities that we do not intend to sell nor will likely be required to sell:

Three Months Ended March 31,	2015		2014
	(in millions)
Beginning balance of credit losses on held-to-maturity debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss)	$	—	$	61
Increase in credit losses for which an other-than-temporary impairment was previously recognized	—		2
Ending balance of credit losses on held-to-maturity debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss)	$	—	$	63

Realized Gains and Losses on Investment Securities Transactions Attributable to Available-for-Sale Securities

The following table summarizes realized gains and losses on investment securities transactions attributable to available-for-sale securities:

Three Months Ended March 31,	2015			2014
	(in millions)
Gross realized gains	$	30		$	43
Gross realized losses	(7		)	(21		)
Net realized gains	$	23		$	22

Distribution of Maturities of Debt Securities with the Approximate Yield of the Portfolio

The table below also reflects the distribution of maturities of debt securities held at March 31, 2015, together with the approximate taxable equivalent yield of the portfolio. The yields shown are calculated by dividing annualized interest income, including the accretion of discounts and the amortization of premiums, by the amortized cost of securities outstanding at March 31, 2015. Yields on tax-exempt obligations have been computed on a taxable equivalent basis using applicable statutory tax rates.

	Within One Year				After One But Within Five Years				After Five But Within Ten Years				After Ten Years
Taxable Equivalent Basis	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
	(dollars are in millions)
Available-for-sale:
U.S. Treasury	$	—	—	%	$	4,124	.70	%	$	3,227	2.24	%	$	3,369	2.81	%
U.S. Government sponsored enterprises	—		—		2,057		3.08		1,723		2.77		1,068		3.27
U.S. Government agency issued or guaranteed	—		—		9		4.22		42		3.89		11,784		2.84
Obligations of U.S. states and political subdivisions	—		—		96		4.12		296		2.96		350		3.41
Asset backed securities	—		—		—		—		—		—		235		3.20
Foreign debt securities	567		3.16		3,554		1.42		—		—		—		—
Total amortized cost	$	567	3.16	%	$	9,840	1.50	%	$	5,288	2.46	%	$	16,806	2.88	%
Total fair value	$	574			$	9,954			$	5,479			$	16,924
Held-to-maturity:
U.S. Government sponsored enterprises	$	—	—	%	$	92	1.40	%	$	615	2.52	%	$	4,573	3.01	%
U.S. Government agency issued or guaranteed	—		—		1		7.66		47		2.80		8,656		2.44
Obligations of U.S. states and political subdivisions	3		5.09		8		3.93		6		3.83		4		5.34
Asset backed securities	—		—		—		—		—		—		10		6.40
Total amortized cost	$	3	5.09	%	$	101	1.65	%	$	668	2.55	%	$	13,243	2.64	%
Total fair value	$	3			$	103			$	685			$	13,559

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CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities
Net income	$ 164	$ 104
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	37	32
Provision for credit losses	53	16
Other-than-temporary impairment related to securities held-to-maturity	0	2
Net realized gains on securities available-for-sale	(23)	(22)
Net change in other assets and liabilities	650	743
Net change in loans held for sale:
Originations of loans	(760)	(374)
Sales and collection of loans held for sale	758	385
Net change in trading assets and liabilities	1,772	32
Lower of amortized cost or fair value adjustments on loans held for sale	6	(1)
Gain on instruments designated at fair value and related derivatives	(85)	(28)
Net cash provided by operating activities	2,572	889
Cash flows from investing activities
Net change in interest bearing deposits with banks	(1,442)	(3,852)
Net change in federal funds sold and securities purchased under agreements to resell	(5,552)	767
Securities available-for-sale:
Purchases of securities available-for-sale	(8,509)	(5,783)
Proceeds from sales of securities available-for-sale	5,491	6,855
Proceeds from maturities of securities available-for-sale	236	701
Securities held-to-maturity:
Purchases of securities held-to-maturity	(1,105)	0
Proceeds from maturities of securities held-to-maturity	554	75
Change in loans:
Originations, net of collections	(3,652)	(2,014)
Loans sold to third parties	98	11
Net cash used for acquisitions of properties and equipment	(6)	(5)
Other, net	(209)	0
Net cash used in investing activities	(14,096)	(3,245)
Cash flows from financing activities
Net change in deposits	2,919	(7,147)
Debt:
Net change in short-term borrowings	2,858	9,632
Issuance of long-term debt	8,943	767
Repayment of long-term debt	(7,101)	(690)
Capital contribution from parent	4,000	0
Other increases in capital surplus	4	6
Dividends paid	(18)	(18)
Net cash provided by financing activities	11,605	2,550
Net change in cash and due from banks	81	194
Cash and due from banks at beginning of period	891	961
Cash and due from banks at end of period	$ 972	$ 1,155

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Loans (Tables)

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Components of Loans

Loans consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Commercial loans:
Construction and other real estate	$	10,901	$	10,300
Business and corporate banking	19,251		17,819
Global banking(1)	28,029		26,387
Other commercial	3,466		3,581
Total commercial	61,647		58,087
Consumer loans:
Residential mortgages	16,991		16,661
Home equity mortgages	1,716		1,784
Credit cards	680		720
Other consumer	424		489
Total consumer	19,811		19,654
Total loans	$	81,458	$	77,741

⁽¹⁾  Represents large multinational firms including globally focused U.S. corporate and financial institutions and U.S. dollar lending to multinational banking customers managed by HSBC on a global basis. Also includes loans to HSBC affiliates which totaled $5,016 million and $4,821 million at March 31, 2015 and December 31, 2014, respectively. See Note 13, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.

Summary of Past Due Status of Loans

The following table summarizes the past due status of our loans at March 31, 2015 and December 31, 2014. The aging of past due amounts is determined based on the contractual delinquency status of payments under the loan. An account is generally considered to be contractually delinquent when payments have not been made in accordance with the loan terms. Delinquency status is affected by customer account management policies and practices such as re-age, which results in the re-setting of the contractual delinquency status to current.

	Past Due				Total Past Due 30 Days or More
At March 31, 2015	30 - 89 days		90+ days				Current(1)		Total Loans
	(in millions)
Commercial loans:
Construction and other real estate	$	40	$	30	$	70	$	10,831	$	10,901
Business and corporate banking	13		4		17		19,234		19,251
Global banking	—		—		—		28,029		28,029
Other commercial	6		6		12		3,454		3,466
Total commercial	59		40		99		61,548		61,647
Consumer loans:
Residential mortgages	355		879		1,234		15,757		16,991
Home equity mortgages	19		54		73		1,643		1,716
Credit cards	10		10		20		660		680
Other consumer	8		8		16		408		424
Total consumer	392		951		1,343		18,468		19,811
Total loans	$	451	$	991	$	1,442	$	80,016	$	81,458

	Past Due				Total Past Due 30 Days or More
At December 31, 2014	30 - 89 days		90+ days				Current(1)		Total Loans
	(in millions)
Commercial loans:
Construction and other real estate	$	25	$	22	$	47	$	10,253	$	10,300
Business and corporate banking	32		9		41		17,778		17,819
Global banking	—		—		—		26,387		26,387
Other commercial	15		6		21		3,560		3,581
Total commercial	72		37		109		57,978		58,087
Consumer loans:
Residential mortgages	390		931		1,321		15,340		16,661
Home equity mortgages	21		56		77		1,707		1,784
Credit cards	11		10		21		699		720
Other consumer	9		9		18		471		489
Total consumer	431		1,006		1,437		18,217		19,654
Total loans	$	503	$	1,043	$	1,546	$	76,195	$	77,741

⁽¹⁾ Loans less than 30 days past due are presented as current.

Summary of Nonaccrual Loans and Accruing Receivables 90 Days or More Delinquent

Nonaccrual loans and accruing receivables 90 days or more delinquent consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Nonaccrual loans:
Commercial:
Construction and other real estate	$	74	$	65
Business and corporate banking	78		74
Commercial nonaccrual loans held for sale	36		43
Total commercial	188		182
Consumer:
Residential mortgages(1)(2)(3)	803		847
Home equity mortgages(1)(2)	67		68
Consumer nonaccrual loans held for sale	4		4
Total consumer loans	874		919
Total nonaccruing loans	1,062		1,101
Accruing loans contractually past due 90 days or more:
Commercial:
Business and corporate banking	1		1
Total commercial	1		1
Consumer:
Credit card receivables	10		10
Other consumer	9		10
Total consumer loans	19		20
Total accruing loans contractually past due 90 days or more	20		21
Total nonperforming loans	$	1,082	$	1,122

⁽¹⁾  At March 31, 2015 and December 31, 2014, nonaccrual consumer mortgage loans include $760 million and $817 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

⁽²⁾  Nonaccrual consumer mortgage loans include all receivables which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent.

⁽³⁾  Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association ("GNMA"). Repayment of these loans are predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.

Schedule of Additional Information on Nonaccrual Loans

The following table provides additional information on our nonaccrual loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Interest income that would have been recorded if the nonaccrual loans had been current in accordance with contractual terms during the period	$	21	$	28
Interest income that was recorded on nonaccrual loans and included in interest income during the period	6		8

Summary of Receivables which were Modified and as a Result Became Classified as TDR Loans

The following table presents information about loans which were modified during the three months ended March 31, 2015 and 2014 and as a result of this action became classified as TDR Loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Commercial loans:
Business and corporate banking	26		10
Global banking	13		—
Total commercial	39		10
Consumer loans:
Residential mortgages	35		33
Home equity mortgages	—		1
Credit cards	1		2
Total consumer	36		36
Total	$	75	$	46

Summary of TDR and Related Credit Loss Reserves for TDR Loans

The following tables present information about our TDR Loans and the related credit loss reserves for TDR Loans:

	March 31, 2015		December 31, 2014
	(in millions)
TDR Loans(1)(2):
Commercial loans:
Construction and other real estate	$	179	$	186
Business and corporate banking	44		24
Global banking	13		—
Total commercial	236		210
Consumer loans:
Residential mortgages(3)	980		972
Home equity mortgages(3)	20		20
Credit cards	6		6
Total consumer	1,006		998
Total TDR Loans(4)	$	1,242	$	1,208
Allowance for credit losses for TDR Loans(5):
Commercial loans:
Construction and other real estate	$	2	$	4
Business and corporate banking	4		5
Total commercial	6		9
Consumer loans:
Residential mortgages	42		43
Home equity mortgages	1		2
Credit cards	2		2
Total consumer	45		47
Total allowance for credit losses for TDR Loans	$	51	$	56

⁽¹⁾  TDR Loans are considered to be impaired loans. For consumer loans, all such loans are considered impaired loans regardless of accrual status. For commercial loans, impaired loans include other loans in addition to TDR Loans which totaled $79 million and $85 million at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  The TDR Loan balances included in the table above reflect the current carrying amount of TDR Loans and includes all basis adjustments on the loan, such as unearned income, unamortized deferred fees and costs on originated loans, partial charge-offs and premiums or discounts on purchased loans. The following table reflects the unpaid principal balance of TDR Loans:

	March 31, 2015		December 31, 2014
	(in millions)
Commercial loans:
Construction and other real estate	$	197	$	201
Business and corporate banking	50		51
Global banking	13		—
Total commercial	260		252
Consumer loans:
Residential mortgages	1,147		1,139
Home equity mortgages	44		44
Credit cards	6		6
Total consumer	1,197		1,189
Total	$	1,457	$	1,441

⁽³⁾  Includes $778 million and $763 million at March 31, 2015 and December 31, 2014, respectively, of loans that are recorded at the lower of amortized cost or fair value of the collateral less cost to sell.

⁽⁴⁾  Includes $451 million and $485 million at March 31, 2015 and December 31, 2014, respectively, of loans which are classified as nonaccrual.

⁽⁵⁾  Included in the allowance for credit losses.

Trouble Debt Restructuring Additional Information

The following table presents information about average TDR Loans and interest income recognized on TDR Loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Average balance of TDR Loans:
Commercial loans:
Construction and other real estate	$	182	$	264
Business and corporate banking	34		19
Global banking	7		25
Other commercial	—		18
Total commercial	223		326
Consumer loans:
Residential mortgages	976		922
Home equity mortgages	20		19
Credit cards	6		8
Total consumer	1,002		949
Total average balance of TDR Loans	$	1,225	$	1,275
Interest income recognized on TDR Loans:
Commercial loans:
Construction and other real estate	$	1	$	6
Business and corporate banking	1		—
Total commercial	2		6
Consumer loans:
Residential mortgages	9		9
Total consumer	9		9
Total interest income recognized on TDR Loans	$	11	$	15

Loans Classified as TDR Loans

The following table presents loans which were classified as TDR Loans during the previous 12 months which for commercial loans became 90 days or greater contractually delinquent or for consumer loans became 60 days or greater contractually delinquent during the three months ended March 31, 2015 and 2014:

Three Months Ended March 31,	2015		2014
	(in millions)
Commercial loans:
Construction and other real estate	$	2	$	12
Business and corporate banking	1		—
Total commercial	3		12
Consumer loans:
Residential mortgages	9		8
Total consumer	9		8
Total	$	12	$	20

Impaired Commercial Loans Considered as TDR Loans

Impaired commercial loans  The following table summarizes impaired commercial loan statistics:

	Amount with Impairment Reserves		Amount without Impairment Reserves		Total Impaired Commercial Loans(1)(2)		Impairment Reserve
	(in millions)
At March 31, 2015
Construction and other real estate	$	14	$	185	$	199	$	3
Business and corporate banking	68		28		96		23
Global banking	—		13		13		—
Other commercial	1		6		7		1
Total commercial	$	83	$	232	$	315	$	27
At December 31, 2014
Construction and other real estate	$	18	$	179	$	197	$	5
Business and corporate banking	72		18		90		24
Global banking	—		—		—		—
Other commercial	2		6		8		1
Total commercial	$	92	$	203	$	295	$	30

⁽¹⁾  Includes impaired commercial loans that are also considered TDR Loans which totaled $236 million and $210 million at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  The impaired commercial loan balances included in the table above reflect the current carrying amount of the loan and includes all basis adjustments, such as partial charge-offs, unamortized deferred fees and costs on originated loans and any premiums or discounts. The following table reflects the unpaid principal balance of impaired commercial loans included in the table above:

	March 31, 2015		December 31, 2014
	(in millions)
Construction and other real estate	$	223	$	224
Business and corporate banking	101		122
Global banking	13		—
Other commercial	7		8
Total commercial	$	344	$	354

Average Balance and Interest Income Recognized on Impaired Commercial Loans

The following table presents information about average impaired commercial loan balances and interest income recognized on the impaired commercial loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Average balance of impaired commercial loans:
Construction and other real estate	$	198	$	297
Business and corporate banking	93		35
Global banking	7		33
Other commercial	8		32
Total average balance of impaired commercial loans	$	306	$	397
Interest income recognized on impaired commercial loans:
Construction and other real estate	$	1	$	6
Business and corporate banking	1		—
Total interest income recognized on impaired commercial loans	$	2	$	6

Summary of Criticized Assets for Commercial Loans

The following table summarizes criticized commercial loans:

	Special Mention		Substandard		Doubtful		Total
	(in millions)
At March 31, 2015
Construction and other real estate	$	254	$	219	$	1	$	474
Business and corporate banking	1,286		358		24		1,668
Global banking	2,009		197		—		2,206
Other commercial	—		6		1		7
Total commercial	$	3,549	$	780	$	26	$	4,355
At December 31, 2014
Construction and other real estate	$	310	$	230	$	7	$	547
Business and corporate banking	1,001		238		22		1,261
Global banking	1,770		202		—		1,972
Other commercial	1		6		—		7
Total commercial	$	3,082	$	676	$	29	$	3,787

Status of Commercial Loan Portfolio

The following table summarizes the status of our commercial loan portfolio, excluding loans held for sale:

	Performing Loans		Nonaccrual Loans		Accruing Loans Contractually Past Due 90 days or More		Total
	(in millions)
At March 31, 2015
Construction and other real estate	$	10,827	$	74	$	—	$	10,901
Business and corporate banking	19,172		78		1		19,251
Global banking	28,029		—		—		28,029
Other commercial	3,466		—		—		3,466
Total commercial	$	61,494	$	152	$	1	$	61,647
At December 31, 2014
Construction and other real estate	$	10,235	$	65	$	—	$	10,300
Business and corporate banking	17,744		74		1		17,819
Global banking	26,387		—		—		26,387
Other commercial	3,581		—		—		3,581
Total commercial	$	57,947	$	139	$	1	$	58,087

Credit Risk Profile of Commercial Loan

The following table shows the credit risk profile of our commercial loan portfolio:

	Investment Grade(1)		Non-Investment Grade		Total
	(in millions)
At March 31, 2015
Construction and other real estate	$	8,314	$	2,587	$	10,901
Business and corporate banking	9,707		9,544		19,251
Global banking	23,146		4,883		28,029
Other commercial	1,831		1,635		3,466
Total commercial	$	42,998	$	18,649	$	61,647
At December 31, 2014
Construction and other real estate	$	7,820	$	2,480	$	10,300
Business and corporate banking	8,835		8,984		17,819
Global banking	23,400		2,987		26,387
Other commercial	1,873		1,708		3,581
Total commercial	$	41,928	$	16,159	$	58,087

⁽¹⁾  Investment grade includes commercial loans with credit ratings of at least BBB- or above or the equivalent based on our internal credit rating system.

Delinquency Ratio for Consumer Loan

The following table summarizes dollars of two-months-and-over contractual delinquency and as a percent of total loans and loans held for sale ("delinquency ratio") for our consumer loan portfolio:

	March 31, 2015				December 31, 2014
	Delinquent Loans		Delinquency Ratio		Delinquent Loans		Delinquency Ratio
	(dollars are in millions)
Residential mortgages(1)(2)	$	957	5.62	%	$	1,013	6.07	%
Home equity mortgages(1)(2)	60		3.50		62		3.48
Credit cards	14		2.06		14		1.94
Other consumer	13		2.53		14		2.52
Total consumer	$	1,044	5.24	%	$	1,103	5.59	%

⁽¹⁾  At March 31, 2015 and December 31, 2014, consumer mortgage loan delinquency includes $908 million and $936 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

⁽²⁾  At March 31, 2015 and December 31, 2014, consumer mortgage loans include $609 million and $608 million, respectively, of loans that were in the process of foreclosure.

Status of Consumer Loan Portfolio

The following table summarizes the status of our consumer loan portfolio, excluding loans held for sale:

	Performing Loans		Nonaccrual Loans		Accruing Loans Contractually Past Due 90 days or More		Total
	(in millions)
At March 31, 2015
Residential mortgages	$	16,188	$	803	$	—	$	16,991
Home equity mortgages	1,649		67		—		1,716
Credit cards	670		—		10		680
Other consumer	415		—		9		424
Total consumer	$	18,922	$	870	$	19	$	19,811
At December 31, 2014
Residential mortgages	$	15,814	$	847	$	—	$	16,661
Home equity mortgages	1,716		68		—		1,784
Credit cards	710		—		10		720
Other consumer	479		—		10		489
Total consumer	$	18,719	$	915	$	20	$	19,654

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Derivative Financial Instruments - Fair Value of Derivatives and Balance Offsetting (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Derivative assets	$ 87,068		$ 75,982
Derivative liabilities	85,022		74,050
Netting assets	72,092	[1],[2]	63,913	[1],[2]
Netting liabilities	72,092	[1],[2]	63,913	[1],[2]
Less: Gross amounts of cash collateral received subject to enforceable master netting agreements(5)(6)	6,573	[2],[3]	4,811	[2],[3]
Less: Gross amounts of cash collateral posted subject to enforceable master netting agreements(5)(6)	1,084	[2],[3]	1,724	[2],[3]
Derivative Asset	8,403		7,258
Derivative Liability	11,846		8,413
Less: Gross amounts of financial instrument collateral received not offset	1,273		1,837
Less: Gross amounts of financial instrument collateral posted not offset	5,420		4,398
Net amount of derivative asset	7,130		5,421
Net amount of derivative liability	6,426		4,015
Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Less: Gross amounts of cash collateral received subject to enforceable master netting agreements(5)(6)	6,573		4,811
Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Less: Gross amounts of cash collateral posted subject to enforceable master netting agreements(5)(6)	1,084		1,724
Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	93	[4]	58	[4]
Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	852	[4]	641	[4]
Interest rate contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	50,885	[5]	45,278	[5]
Interest rate contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	51,276	[5]	45,998	[5]
Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	27,705	[5]	22,219	[5]
Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	26,309	[5]	20,839	[5]
Precious metals contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	827	[5]	1,072	[5]
Precious metals contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	676	[5]	609	[5]
Credit contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	4,185	[5]	4,122	[5]
Credit contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	3,989	[5]	4,018	[5]
Fair Value Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	14	[4]	5	[4]
Fair Value Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	651	[4]	474	[4]
Cash Flow Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	8	[4]	8	[4]
Cash Flow Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	201	[4]	167	[4]
OTC Cleared [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	22,608	[5],[6]	16,862	[5],[6]
OTC Cleared [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	22,240	[5],[6]	17,557	[5],[6]
OTC Cleared [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	635	[5],[6]	604	[5],[6]
OTC Cleared [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	784	[5],[6]	730	[5],[6]
OTC Cleared [Member] | Fair Value Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	11	[4],[6]	1	[4],[6]
OTC Cleared [Member] | Fair Value Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	298	[4],[6]	206	[4],[6]
OTC Cleared [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	8	[4],[6]	8	[4],[6]
OTC Cleared [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	7	[4],[6]	6	[4],[6]
Bilateral OTC [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	865	[4],[6]	768	[4],[6]
Bilateral OTC [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	114	[4],[6]	88	[4],[6]
Bilateral OTC [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	28,247	[5],[6]	28,370	[5],[6]
Bilateral OTC [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	28,985	[5],[6]	28,398	[5],[6]
Bilateral OTC [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	0	[4],[6]	0	[4],[6]
Bilateral OTC [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	72	[4],[6]	44	[4],[6]
Bilateral OTC [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	27,683	[5],[6]	22,219	[5],[6]
Bilateral OTC [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	26,262	[5],[6]	20,826	[5],[6]
Bilateral OTC [Member] | Equity contracts [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	841	[4],[6]	757	[4],[6]
Bilateral OTC [Member] | Equity contracts [Member] | Not Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	157	[4],[6]	167	[4],[6]
Bilateral OTC [Member] | Equity contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	1,569	[5],[6]	1,635	[5],[6]
Bilateral OTC [Member] | Equity contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	1,568	[5],[6]	1,632	[5],[6]
Bilateral OTC [Member] | Precious metals contracts [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	0	[4],[6]	0	[4],[6]
Bilateral OTC [Member] | Precious metals contracts [Member] | Not Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	0	[4],[6]	5	[4],[6]
Bilateral OTC [Member] | Precious metals contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	794	[5],[6]	1,013	[5],[6]
Bilateral OTC [Member] | Precious metals contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	645	[5],[6]	591	[5],[6]
Bilateral OTC [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	98	[4],[6]	73	[4],[6]
Bilateral OTC [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	9	[4],[6]	9	[4],[6]
Bilateral OTC [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	3,550	[5],[6]	3,518	[5],[6]
Bilateral OTC [Member] | Credit contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	3,205	[5],[6]	3,288	[5],[6]
Bilateral OTC [Member] | Fair Value Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	3	[4],[6]	4	[4],[6]
Bilateral OTC [Member] | Fair Value Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	353	[4],[6]	268	[4],[6]
Bilateral OTC [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	0	[4],[6]	0	[4],[6]
Bilateral OTC [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	194	[4],[6]	161	[4],[6]
Bilateral OTC [Member] | Cash Flow Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	71	[4]	45	[4]
Bilateral OTC [Member] | Cash Flow Hedging [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member] | Interest taxes and other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	0	[4]	0	[4]
Exchange Traded [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	30	[5],[6]	46	[5],[6]
Exchange Traded [Member] | Interest rate contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	51	[5],[6]	43	[5],[6]
Exchange Traded [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	22	[5],[6]	0	[5],[6]
Exchange Traded [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	47	[5],[6]	13	[5],[6]
Exchange Traded [Member] | Precious metals contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	33	[5],[6]	59	[5],[6]
Exchange Traded [Member] | Precious metals contracts [Member] | Not Designated as Hedging Instrument [Member] | Trading Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ 31	[5],[6]	$ 18	[5],[6]

[1] Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements.

[2] Netting is performed at a counterparty level in cases where enforceable master netting and credit support agreements are in place, regardless of the type of derivative instrument. Therefore, we have not attempted to allocate netting to the different types of derivative instruments shown in the table above.

[3] Represents the netting of cash collateral posted and received by counterparty under enforceable credit support agreements.

[4] Derivative assets / liabilities related to cash flow hedges, fair value hedges and derivative instruments held for purposes other than for trading are recorded in other assets / interest, taxes and other liabilities on the consolidated balance sheet.

[5] Trading related derivative assets/liabilities are recorded in trading assets/trading liabilities on the consolidated balance sheet.

[6] Over-the-counter (OTC) derivatives include derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. The credit risk associated with bilateral OTC derivatives is managed through master netting agreements and obtaining collateral. OTC-cleared derivatives are executed bilaterally in the OTC market but then novated to a central clearing counterparty, whereby the central clearing counterparty becomes the counterparty to both of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange that provides pre-trade price transparency. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining required by central clearing counterparties.

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Guarantee Arrangements and Pledged Assets and Collateral - Summary of Change in Estimated Repurchase Liability for Loans Sold to GSEs and Other Third Parties (Detail) (Obligation to Repurchase Receivables Sold [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Obligation to Repurchase Receivables Sold [Member]
Estimated Repurchase Liability For Loans Sold [Roll Forward]
Balance at beginning of period	$ 27	$ 99
Increase (decrease) in liability recorded through earnings	(3)	(34)
Realized losses	(1)	(29)
Balance at end of period	$ 23	$ 36

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2015

Related Party Transactions [Abstract]

Summary of Related Party Transactions

The following tables and discussions below present the more significant related party balances and the income (expense) generated by related party transactions:

	March 31, 2015		December 31, 2014
	(in millions)
Assets:
Cash and due from banks	$	171	$	140
Interest bearing deposits with banks(1)	1,017		928
Trading assets(2)	21,048		20,194
Loans	5,016		4,821
Other(3)	1,082		983
Total assets	$	28,334	$	27,066
Liabilities:
Deposits	$	15,688	$	16,596
Trading liabilities(2)	22,478		21,130
Short-term borrowings	1,676		847
Long-term debt	—		3,981
Other(3)	387		459
Total liabilities	$	40,229	$	43,013

⁽¹⁾  Includes interest bearing deposits with HSBC Mexico S.A. of $800 million at both March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  Trading assets and trading liabilities do not reflect the impact of netting which allows the offsetting of amounts relating to certain contracts if certain conditions are met. Trading assets and liabilities primarily consist of derivatives contracts.

⁽³⁾  Other assets and other liabilities primarily consist of derivative contracts.

Three Months Ended March 31,	2015			2014
	(in millions)
Income/(Expense):
Interest income	$	30		$	14
Interest expense	(14		)	(18		)
Net interest income (expense)	16			(4		)
Trading revenue	148			852
Servicing and other fees from HSBC affiliates:
HSBC Bank Plc	19			16
HSBC Finance Corporation	16			15
HSBC Markets (USA) Inc. ("HMUS")	7			4
Other HSBC affiliates	14			12
Total servicing and other fees from HSBC affiliates	56			47
Gain (loss) on instruments designed at fair value and related derivatives	258			98
Support services from HSBC affiliates:
HMUS	(64		)	(57		)
HSBC Technology & Services (USA) ("HTSU")	(240		)	(253		)
Other HSBC affiliates	(48		)	(44		)
Total support services from HSBC affiliates	(352		)	(354		)
Stock based compensation expense with HSBC(1)	(13		)	(7		)

⁽¹⁾  Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income. Employees also may participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 12, "Pension and Other Postretirement Benefits."

Schedule of Assets by Related Party

At March 31, 2015 and December 31, 2014, we have the following loan balances outstanding with HSBC affiliates:

	March 31, 2015		December 31, 2014
	(in millions)
HSBC Finance Corporation	$	3,014	$	3,014
HSBC Markets (USA) Inc. ("HMUS") and subsidiaries	764		563
HSBC Bank Brasil S.A.	1,110		1,108
Other short-term affiliate lending	128		136
Total loans	$	5,016	$	4,821

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Securities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015 security	Mar. 31, 2014 security	Dec. 31, 2014 security
Schedule of Available-for-sale Securities [Line Items]
Assets backed securities in available for sale portfolio	15		15
Assets backed securities wrapped by monoline insurance company	5		5
Value of asset backed securities backed by insurance company	$ 180		$ 183
Fair value of asset backed securities	208		226
Available-for-sale securities, backed by insurance company, accumulated unrecognized holding loss	27		23
Fair value of financial guarantee	85		89
Held-to-maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Asset backed securities with changes to other than temporary impairment estimates related to credit component	0	1
Increase in credit losses for which an other-than-temporary impairment was previously recognized	0	2
Other assets [Member]
Schedule of Available-for-sale Securities [Line Items]
Federal Home Loan Bank Stock	315		108
Federal Reserve Bank Stock	$ 485		$ 483

XML

Loans - Status of Consumer Loan Portfolio (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Accruing Loans Contractually Past Due 90 days or More	$ 20		$ 21
Total loans	81,458		77,741		68,897
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing Loans	18,922		18,719
Nonaccrual loans	870		915
Accruing Loans Contractually Past Due 90 days or More	19		20
Total loans	19,811		19,654
Consumer Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing Loans	16,188		15,814
Nonaccrual loans	803	[1],[2],[3]	847	[1],[2],[3]
Accruing Loans Contractually Past Due 90 days or More	0		0
Total loans	16,991		16,661		15,900
Consumer Loans [Member] | Home Equity Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing Loans	1,649		1,716
Nonaccrual loans	67	[1],[2]	68	[1],[2]
Accruing Loans Contractually Past Due 90 days or More	0		0
Total loans	1,716		1,784		1,938
Consumer Loans [Member] | Credit Cards [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing Loans	670		710
Nonaccrual loans	0		0
Accruing Loans Contractually Past Due 90 days or More	10		10
Total loans	680		720		683
Consumer Loans [Member] | Other consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing Loans	415		479
Nonaccrual loans	0		0
Accruing Loans Contractually Past Due 90 days or More	9		10
Total loans	$ 424		$ 489		$ 483

[1] Nonaccrual consumer mortgage loans include all receivables which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent.

[2] At March 31, 2015 and December 31, 2014, nonaccrual consumer mortgage loans include $760 million and $817 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

[3] Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association ("GNMA"). Repayment of these loans are predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.

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CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Interest income:
Loans	$ 501		$ 464
Securities	200		207
Trading assets	95		48
Short-term investments	22		16
Other	15		10
Total interest income	833		745
Interest expense:
Deposits	46		35
Short-term borrowings	11		6
Long-term debt	167		170
Other	3		15
Total interest expense	227		226
Net interest income	606	[1]	519	[1]
Provision for credit losses	53		16
Net interest income after provision for credit losses	553		503
Other revenues:
Credit card fees	10		14
Other fees and commissions	182		173
Trust income	35		31
Trading revenue	33		133
Net other-than-temporary impairment losses	0	[2]	(2)	[2]
Other securities gains, net	23		22
Servicing and other fees from HSBC affiliates	56		47
Residential mortgage banking revenue	19		48
Gain on instruments designated at fair value and related derivatives	85		28
Other income	21		6
Total other revenues	464		500
Operating expenses:
Salaries and employee benefits	246		215
Support services from HSBC affiliates	352		354
Occupancy expense, net	56		57
Other expenses	123		124
Total operating expenses	777	[3]	750	[3]
Income before income tax	240		253
Income tax expense	76		149
Net income	$ 164		$ 104

[1] Net interest income of each segment represents the difference between actual interest earned on assets and interest paid on liabilities of the segment adjusted for a funding charge or credit. Segments are charged a cost to fund assets (e.g. customer loans) and receive a funding credit for funds provided (e.g. customer deposits) based on equivalent market rates. The objective of these charges/credits is to transfer interest rate risk from the segments to one centralized unit in Balance Sheet Management and more appropriately reflect the profitability of segments.

[2] During the three months ended March 31, 2015, there were no other-than-temporary impairment ("OTTI") losses on securities recognized in other revenues and no OTTI losses in the non-credit component of securities recognized in accumulated other comprehensive loss ("AOCI"), net of tax. During the three months ended March 31, 2014, OTTI losses on securities held-to-maturity totaling $2 million were recognized in other revenues. There were no OTTI losses in the non-credit component of such impaired securities recognized in AOCI, net of tax.

[3] Expenses for the segments include fully apportioned corporate overhead expenses.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Carrying Value and Estimated Fair Value of Financial Instruments

The following table summarizes the carrying value and estimated fair value of our financial instruments at March 31, 2015 and December 31, 2014:

March 31, 2015	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Short-term financial assets	$	33,260	$	33,260	$	972	$	32,249	$	39
Federal funds sold and securities purchased under resale agreements	6,965		6,965		—		6,965		—
Non-derivative trading assets	15,938		15,938		2,912		9,925		3,101
Derivatives	8,403		8,403		8		8,350		45
Securities	47,111		47,446		25,141		22,305		—
Commercial loans, net of allowance for credit losses	61,113		62,494		—		—		62,494
Commercial loans designated under fair value option and held for sale	255		255		—		255		—
Commercial loans held for sale	36		36		—		36		—
Consumer loans, net of allowance for credit losses	19,642		18,143		—		—		18,143
Consumer loans held for sale:
Residential mortgages	24		25		—		20		5
Other consumer	90		90		—		—		90
Financial liabilities:
Short-term financial liabilities	$	15,710	$	15,710	$	—	$	15,671	$	39
Deposits:
Without fixed maturities	109,625		109,625		—		109,625		—
Fixed maturities	2,521		2,524		—		2,524		—
Deposits designated under fair value option	6,948		6,948		—		5,022		1,926
Non-derivative trading liabilities	646		646		477		169		—
Derivatives	11,846		11,846		19		11,798		29
Long-term debt	20,387		21,259		—		21,259		—
Long-term debt designated under fair value option	9,033		9,033		—		8,391		642

December 31, 2014	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Short-term financial assets	$	31,746	$	31,746	$	891	$	30,807	$	48
Federal funds sold and securities purchased under resale agreements	1,413		1,413		—		1,413		—
Non-derivative trading assets	15,490		15,490		2,675		9,722		3,093
Derivatives	7,258		7,258		10		7,200		48
Securities	43,609		43,835		22,048		21,787		—
Commercial loans, net of allowance for credit losses	57,595		58,891		—		—		58,891
Commercial loans designated under fair value option and held for sale	384		384		—		384		—
Commercial loans held for sale	144		144		—		144		—
Consumer loans, net of allowance for credit losses	19,466		17,896		—		—		17,896
Consumer loans held for sale:
Residential mortgages	18		19		—		14		5
Other consumer	66		66		—		—		66
Financial liabilities:
Short-term financial liabilities	$	12,861	$	12,861	$	—	$	12,813	$	48
Deposits:
Without fixed maturities	105,962		105,962		—		105,962		—
Fixed maturities	2,810		2,813		—		2,813		—
Deposits designated under fair value option	7,346		7,346		—		5,378		1,968
Non-derivative trading liabilities	705		705		653		52		—
Derivatives	8,413		8,413		8		8,376		29
Long-term debt	18,733		19,524		—		19,524		—
Long-term debt designated under fair value option	8,791		8,791		—		8,144		647

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The following table presents information about our assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value:

	Fair Value Measurements on a Recurring Basis
March 31, 2015	Level 1		Level 2		Level 3		Gross Balance		Netting(1)			Net Balance
	(in millions)
Assets:
Trading Securities, excluding derivatives:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	$	2,912	$	107	$	—	$	3,019	$	—		$	3,019
Obligations of U.S. States and political subdivisions	—		586		—		586		—			586
Collateralized debt obligations	—		—		253		253		—			253
Asset-backed securities:
Residential mortgages	—		139		—		139		—			139
Student Loans	—		88		—		88		—			88
Corporate and other domestic debt securities	—		—		2,848		2,848		—			2,848
Debt Securities issued by foreign entities:
Corporate	—		183		—		183		—			183
Government-backed	—		5,494		—		5,494		—			5,494
Equity securities	—		18		—		18		—			18
Precious metals trading	—		3,310		—		3,310		—			3,310
Derivatives(2):
Interest rate contracts	32		51,719		21		51,772		—			51,772
Foreign exchange contracts	22		27,735		19		27,776		—			27,776
Equity contracts	—		2,245		165		2,410		—			2,410
Precious metals contracts	33		794		—		827		—			827
Credit contracts	—		4,025		258		4,283		—			4,283
Derivatives netting	—		—		—		—		(78,665		)	(78,665		)
Total derivatives	87		86,518		463		87,068		(78,665		)	8,403
Securities available-for-sale:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	25,141		2,721		—		27,862		—			27,862
Obligations of U.S. states and political subdivisions	—		748		—		748		—			748
Asset-backed securities:
Commercial mortgages	—		29		—		29		—			29
Home equity	—		85		—		85		—			85
Other	—		94		—		94		—			94
Debt Securities issued by foreign entities:
Corporate	—		360		—		360		—			360
Government-backed	—		3,753		—		3,753		—			3,753
Equity securities	—		165		—		165		—			165
Loans(3)	—		255		—		255		—			255
Mortgage servicing rights(4)	—		—		141		141		—			141
Total assets	$	28,140	$	104,653	$	3,705	$	136,498	$	(78,665	)	$	57,833
Liabilities:
Deposits in domestic offices(5)	$	—	$	5,022	$	1,926	$	6,948	$	—		$	6,948
Trading liabilities, excluding derivatives	477		169		—		646		—			646
Derivatives(2):
Interest rate contracts	58		52,183		1		52,242		—			52,242
Foreign exchange contracts	47		26,315		19		26,381		—			26,381
Equity contracts	—		1,603		122		1,725		—			1,725
Precious metals contracts	31		645		—		676		—			676
Credit contracts	—		3,932		66		3,998		—			3,998
Derivatives netting	—		—		—		—		(73,176		)	(73,176		)
Total derivatives	136		84,678		208		85,022		(73,176		)	11,846
Long-term debt(5)	—		8,391		642		9,033		—			9,033
Total liabilities	$	613	$	98,260	$	2,776	$	101,649	$	(73,176	)	$	28,473

	Fair Value Measurements on a Recurring Basis
December 31, 2014	Level 1		Level 2		Level 3		Gross Balance		Netting(1)			Net Balance
	(in millions)
Assets:
Trading Securities, excluding derivatives:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	$	2,675	$	48	$	—	$	2,723	$	—		$	2,723
Obligations of U. S. States and political subdivisions	—		591		—		591		—			591
Collateralized debt obligations	—		—		253		253		—			253
Asset-backed securities:
Residential mortgages	—		142		—		142		—			142
Student loans	—		86		—		86		—			86
Corporate and other domestic debt securities	—		1		2,840		2,841		—			2,841
Debt Securities issued by foreign entities:
Corporate	—		184		—		184		—			184
Government-backed	—		6,656		—		6,656		—			6,656
Equity securities	—		22		—		22		—			22
Precious metals trading	—		1,992		—		1,992		—			1,992
Derivatives(2):
Interest rate contracts	46		46,012		1		46,059		—			46,059
Foreign exchange contracts	—		22,241		23		22,264		—			22,264
Equity contracts	—		2,212		180		2,392		—			2,392
Precious metals contracts	59		1,013		—		1,072		—			1,072
Credit contracts	—		3,899		296		4,195		—			4,195
Derivatives netting	—		—		—		—		(68,724		)	(68,724		)
Total derivatives	105		75,377		500		75,982		(68,724		)	7,258
Securities available-for-sale:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	22,048		3,117		—		25,165		—			25,165
Obligations of U.S. states and political subdivisions	—		667		—		667		—			667
Asset-backed securities:
Commercial mortgages	—		43		—		43		—			43
Home equity	—		89		—		89		—			89
Other	—		94		—		94		—			94
Debt Securities issued by foreign entities:
Corporate	—		517		—		517		—			517
Government-backed	—		3,398		—		3,398		—			3,398
Equity securities	—		167		—		167		—			167
Loans(3)	—		384		—		384		—			384
Mortgage servicing rights(4)	—		—		159		159		—			159
Total assets	$	24,828	$	93,575	$	3,752	$	122,155	$	(68,724	)	$	53,431
Liabilities:
Deposits in domestic offices(5)	$	—	$	5,378	$	1,968	$	7,346	$	—		$	7,346
Trading liabilities, excluding derivatives	653		52		—		705		—			705
Derivatives(2):
Interest rate contracts	43		46,683		1		46,727		—			46,727
Foreign exchange contracts	13		20,847		23		20,883		—			20,883
Equity contracts	—		1,661		138		1,799		—			1,799
Precious metals contracts	18		596		—		614		—			614
Credit contracts	—		3,941		86		4,027		—			4,027
Derivatives netting	—		—		—		—		(65,637		)	(65,637		)
Total derivatives	74		73,728		248		74,050		(65,637		)	8,413
Long-term debt(5)	—		8,144		647		8,791		—			8,791
Total liabilities	$	727	$	87,302	$	2,863	$	90,892	$	(65,637	)	$	25,255

⁽¹⁾  Represents counterparty and cash collateral netting which allow the offsetting of amounts relating to certain contracts if certain conditions are met.

⁽²⁾  Includes trading derivative assets of $6,506 million and $5,602 million and trading derivative liabilities of $10,642 million and $7,459 million as of March 31, 2015 and December 31, 2014, respectively, as well as derivatives held for hedging and commitments accounted for as derivatives.

⁽³⁾  Includes certain commercial loans held for sale which we have elected to apply the fair value option. See Note 6, "Loans Held for Sale," for further information.

⁽⁴⁾  See Note 7, "Intangible Assets," for additional information.

⁽⁵⁾  See Note 10, "Fair Value Option," for additional information.

Changes in Fair Value of Level 3 Assets and Liabilities

The following table summarizes additional information about changes in the fair value of Level 3 assets and liabilities during the three months ended March 31, 2015 and 2014. As a risk management practice, we may risk manage the Level 3 assets and liabilities, in whole or in part, using securities and derivative positions that are classified as Level 1 or Level 2 measurements within the fair value hierarchy. Since those Level 1 and Level 2 risk management positions are not included in the table below, the information provided does not reflect the effect of such risk management activities related to the Level 3 assets and liabilities.

	Jan. 1, 2015			Total Gains and  (Losses) Included in(1)						Purch- ases		Issu- ances			Settle- ments			Transfers Into Level 3		Transfers Out of Level 3			Mar. 31, 2015			Current Period Unrealized Gains (Losses)
				Trading Revenue (Loss)			Other Revenue
	(in millions)
Assets:
Trading assets, excluding derivatives:
Collateralized debt obligations	$	253		$	9		$	—		$	—	$	—		$	(8	)	$	—	$	—		$	254		$	7
Corporate and other domestic debt securities	2,840			—			—			8		—			—			—		—			2,848			—
Derivatives, net(2):
Interest rate contracts	—			19			1			—		—			—			—		—			20			20
Foreign exchange contracts	—			—			—			—		—			—			—		—			—			—
Equity contracts	42			23			—			—		—			(21		)	—		(1		)	43			14
Credit contracts	210			(12		)	—			—		—			(6		)	—		—			192			(40		)
Mortgage servicing rights(3)	159			—			(14		)	—		—			(4		)	—		—			141			(14		)
Total assets	$	3,504		$	39		$	(13	)	$	8	$	—		$	(39	)	$	—	$	(1	)	$	3,498		$	(13	)
Liabilities:
Deposits in domestic offices(4)	$	(1,968	)	$	—		$	(19	)	$	—	$	(89	)	$	49		$	—	$	101		$	(1,926	)	$	(13	)
Long-term debt(4)	(647		)	—			(7		)	—		(87		)	79			—		20			(642		)	(6		)
Total liabilities	$	(2,615	)	$	—		$	(26	)	$	—	$	(176	)	$	128		$	—	$	121		$	(2,568	)	$	(19	)

	Jan. 1, 2014			Total Gains and  (Losses) Included in(1)						Purch- ases		Issu- ances			Settle- ments			Transfers Into Level 3			Transfers Out of Level 3		Mar. 31, 2014			Current Period Unrealized Gains (Losses)
				Trading Revenue (Loss)			Other Revenue
	(in millions)
Assets:
Trading assets, excluding derivatives:
Collateralized debt obligations	$	254		$	7		$	—		$	—	$	—		$	(3	)	$	—		$	—	$	258		$	7
Corporate and other domestic debt securities	2,260			(5		)	—			553		—			—			—			—		2,808			(6		)
Government debt securities issued by foreign entities	121			2			—			—		—			(6		)	—			—		117			(4		)
Derivatives, net(2):
Interest rate contracts	1			—			—			—		—			—			—			—		1			—
Foreign exchange contracts	95			1			—			—		—			(6		)	—			6		96			1
Equity contracts	3			19			—			—		—			(7		)	4			5		24			12
Precious metals contracts	(2		)	2			—			—		—			—			—			—		—			—
Credit contracts	191			(13		)	—			—		—			3			—			—		181			(28		)
Mortgage servicing rights(3)	227			—			(12		)	—		—			(10		)	—			—		205			(12		)
Total assets	$	3,150		$	13		$	(12	)	$	553	$	—		$	(29	)	$	4		$	11	$	3,690		$	(30	)
Liabilities:
Deposits in domestic offices(4)	$	(2,334	)	$	(124	)	$	—		$	—	$	(25	)	$	167		$	(68	)	$	140	$	(2,244	)	$	(23	)
Long-term debt(4)	(900		)	93			—			—		(43		)	47			—			71		(732		)	(2		)
Total liabilities	$	(3,234	)	$	(31	)	$	—		$	—	$	(68	)	$	214		$	(68	)	$	211	$	(2,976	)	$	(25	)

⁽¹⁾  Includes realized and unrealized gains and losses.

⁽²⁾  Level 3 net derivatives included derivative assets of $463 million and derivative liabilities of $208 million as of March 31, 2015 and derivative assets of $694 million and derivative liabilities of $392 million as of March 31, 2014.

⁽³⁾  See Note 7, "Intangible Assets," for additional information.

⁽⁴⁾  See Note 10, "Fair Value Option," for additional information.

Quantitative Information about Recurring Fair Value Measurement of Assets and Liabilities Classified as Level 3

The following table presents quantitative information about the unobservable inputs used to determine the recurring fair value measurement of assets and liabilities classified as Level 3 fair value measurements as of March 31, 2015 and December 31, 2014:

March 31, 2015
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Collateralized debt obligations	254		Broker quotes or consensus pricing and, where applicable, discounted cash flows	Prepayment rates	1% - 6%
				Conditional default rates	6% - 7%
				Loss severity rates	90% - 91%
Corporate and other domestic debt securities	2,848		Discounted cash flows	Spread volatility on collateral assets	1% - 4%
				Correlation between insurance claim shortfall and collateral value	80%
Interest rate derivative contracts	20		Market comparable adjusted for probability to fund	Probability to fund for rate lock commitments	6% - 99%
Foreign exchange derivative contracts(1)	—		Option pricing model	Implied volatility of currency pairs	17% - 22%
Equity derivative contracts(1)	43		Option pricing model	Equity / Equity Index volatility	13% - 65%
				Equity / Equity and Equity / Index correlation	47% - 59%
Credit derivative contracts	192		Option pricing model	Correlation of defaults of a portfolio of reference credit names	49% - 52%
				Issuer by issuer correlation of defaults	82% - 83%
Mortgage servicing rights	141		Option adjusted discounted cash flows	Constant prepayment rates	11% - 51%
				Option adjusted spread	8% - 14%
				Estimated annualized costs to service	$91 - $333 per account
Deposits in domestic offices (structured deposits)(1)(2)	(1,926	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	17% - 22%
				Equity / Equity Index volatility	13% - 65%
				Equity / Equity and Equity / Index correlation	47% - 59%
Long-term debt (structured notes)(1)(2)	(642	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	17% - 22%
				Equity / Equity Index volatility	13% - 65%
				Equity / Equity and Equity / Index correlation	47% - 59%

December 31, 2014
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Collateralized debt obligations	253		Broker quotes or consensus pricing and, where applicable, discounted cash flows	Prepayment rates	1% - 6%
				Conditional default rates	6% - 7%
				Loss severity rates	90% - 91%
Corporate and other domestic debt securities	2,840		Discounted cash flows	Spread volatility on collateral assets	2% - 4%
				Correlation between insurance claim shortfall and collateral value	80%
Interest rate derivative contracts	—		Market comparable adjusted for probability to fund	Probability to fund for rate lock commitments	6% - 98%
Foreign exchange derivative contracts(1)	—		Option pricing model	Implied volatility of currency pairs	10% - 17%
Equity derivative contracts(1)	42		Option pricing model	Equity / Equity Index volatility	11% - 60%
				Equity / Equity and Equity / Index correlation	47% - 73%
Credit derivative contracts	210		Option pricing model	Correlation of defaults of a portfolio of reference credit names	52% - 57%
				Issuer by issuer correlation of defaults	82% - 83%
Mortgage servicing rights	159		Option adjusted discounted cash flows	Constant prepayment rates	10% - 49%
				Option adjusted spread	8% - 19%
				Estimated annualized costs to service	$91 - $333 per account
Deposits in domestic offices (structured deposits)(1)(2)	(1,968	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	10% - 17%
				Equity / Equity Index volatility	11% - 60%
				Equity / Equity and Equity / Index correlation	47% - 73%
Long-term debt (structured notes)(1)(2)	(647	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	10% - 17%
				Equity / Equity Index volatility	11% - 60%
				Equity / Equity and Equity / Index correlation	47% - 73%

⁽¹⁾  We are the client-facing entity and we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market neutral. The corresponding intra-group derivatives are presented as equity derivatives and foreign exchange derivatives in the table.

⁽²⁾  Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs.

Fair Value Hierarchy Level within Which Fair Value of Financial and Non-Financial Assets has been Recorded

The following table presents the fair value hierarchy level within which the fair value of the financial and non-financial assets has been recorded as of March 31, 2015 and December 31, 2014. The gains (losses) during the three months ended March 31, 2015 and 2014 are also included.

	Non-Recurring Fair Value Measurements as of March 31, 2015								Total Gains (Losses) For the Three Months Ended March 31, 2015
	Level 1		Level 2		Level 3		Total
	(in millions)
Residential mortgage loans held for sale(1)	$	—	$	1	$	5	$	6	$	—
Consumer loans(2)	—		37		—		37		(10		)
Commercial loans held for sale(3)	—		35		—		35		(8		)
Impaired commercial loans(4)	—		—		48		48		—
Real estate owned(5)	—		22		—		22		1
Total assets at fair value on a non-recurring basis	$	—	$	95	$	53	$	148	$	(17	)

	Non-Recurring Fair Value Measurements as of December 31, 2014								Total Gains (Losses) For the Three Months Ended March 31, 2014
	Level 1		Level 2		Level 3		Total
	(in millions)
Residential mortgage loans held for sale(1)	$	—	$	—	$	5	$	5	$	3
Consumer loans(2)	—		164		—		164		(15		)
Commercial loans held for sale(3)	—		77		—		77		—
Impaired commercial loans(4)	—		—		53		53		(6		)
Real estate owned(5)	—		19		—		19		1
Total assets at fair value on a non-recurring basis	$	—	$	260	$	58	$	318	$	(17	)

⁽¹⁾  As of March 31, 2015 and December 31, 2014, the fair value of the loans held for sale was below cost. Certain residential mortgage loans held for sale have been classified as a Level 3 fair value measurement within the fair value hierarchy as the underlying real estate properties which determine fair value are illiquid assets as a result of market conditions and significant inputs in estimating fair value were unobservable. Additionally, the fair value of these properties is affected by, among other things, the location, the payment history and the completeness of the loan documentation.

⁽²⁾  Represents residential mortgage loans held for investment whose carrying amount was reduced during the periods presented based on the fair value of the underlying collateral.

⁽³⁾  As of March 31, 2015 and December 31, 2014, the fair value of the loans held for sale was below cost.

⁽⁴⁾  Certain commercial loans have undergone troubled debt restructurings and are considered impaired. As a matter of practical expedient, we measure the credit impairment of a collateral-dependent loan based on the fair value of the collateral asset. The collateral often involves real estate properties that are illiquid due to market conditions. As a result, these loans are classified as a Level 3 fair value measurement within the fair value hierarchy.

⁽⁵⁾  Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value unadjusted for transaction costs.

Quantitative Information about Non Recurring Fair Value Measurement of Assets and Liabilities

The following tables present quantitative information about non-recurring fair value measurements of assets and liabilities classified with Level 3 of the fair value hierarchy as of March 31, 2015 and December 31, 2014:

As of March 31, 2015
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Residential mortgage loans held for sale	$	5	Valuation of third party appraisal on underlying collateral	Loss severity rates	0% - 100%
Impaired commercial loans	48		Valuation of third party appraisal on underlying collateral	Loss severity rates	17% - 40%

As of December 31, 2014
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Residential mortgage loans held for sale	$	5	Valuation of third party appraisal on underlying collateral	Loss severity rates	0% - 100%
Impaired commercial loans	53		Valuation of third party appraisal on underlying collateral	Loss severity rates	8% - 47%

Additional Information Relating to Asset-Backed Securities and Collateralized Debt Obligations

The following tables provide additional information relating to asset-backed securities as well as certain collateralized debt obligations held as of March 31, 2015:

Trading asset-backed securities:

Rating of Securities:(1)	Collateral Type:	Level 2		Level 3		Total
		(in millions)
AAA -A	Residential mortgages - Alt A	$	80	$	—	$	80
	Residential mortgages - Subprime	53		—		53
	Student loans	88		—		88
	Total AAA -A	221		—		221
BBB -B	Collateralized debt obligations	—		253		253
CCC-Unrated	Residential mortgages - Subprime	6		—		6
		$	227	$	253	$	480

Available-for-sale securities backed by collateral:

Rating of Securities:(1)	Collateral Type:	Level 2		Level 3		Total
		(in millions)
AAA -A	Commercial mortgages	$	29	$	—	$	29
	Home equity - Alt A	85		—		85
	Other	94		—		94
	Total AAA -A	$	208	$	—	$	208

⁽¹⁾   We utilize S&P as the primary source of credit ratings in the tables above. If S&P ratings are not available, ratings by Moody's and Fitch are used in that order. Ratings for collateralized debt obligations represent the ratings associated with the underlying collateral.

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Pensions and Other Postretirement Benefits-Net Periodic Benefit Cost (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
HSBC North America Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost – benefits earned during the period	$ 2	$ 1
Interest cost	17	18
Expected return on assets	(23)	(20)
Amortization of net actuarial loss (gain)	9	9
Net periodic benefit cost	5	8
Postretirement Plans Other Than Pensions [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1	1
Net periodic benefit cost	1	1
Hsbc North America [Member] | HSBC North America Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer			$ 46

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Guarantee Arrangements and Pledged Assets and Collateral - Outstanding Repurchase Demands Received From GSEs and Other Third Parties (Detail) (Obligation to Repurchase Receivables Sold [Member], USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Loss Contingencies [Line Items]
Outstanding repurchase demands received	$ 3	$ 3
GSEs [Member]
Loss Contingencies [Line Items]
Outstanding repurchase demands received	2	2
Others [Member]
Loss Contingencies [Line Items]
Outstanding repurchase demands received	$ 1	$ 1

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CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Securities held-to-maturity, fair value	$ 14,350		$ 13,695
Common stock, par value (usd per share)	$ 5		$ 5
Common stock, shares authorized (shares)	150,000,000		150,000,000
Common stock, shares issued (shares)	714		713
Common stock, shares outstanding (shares)	714		713
Assets:
Other assets	8,657		7,989
Total assets	201,594	[1]	185,539	[1]
Liabilities
Long-term debt	29,420		27,524
Interest, taxes and other liabilities	5,068		3,971
Total liabilities	180,523	[1]	168,572	[1]
Variable interest entities [Member]
Assets:
Other assets	372		380
Total assets	372		380
Liabilities
Long-term debt	92		92
Interest, taxes and other liabilities	86		75
Total liabilities	178		167
Loans Receivable [Member]
Loans Held-for-sale, designated under fair value option	255		384
Deposits [Member]
Deposits designated under fair value option	6,948		7,346
Long-term debt [Member]
Long-term debt designated under fair value option	$ 9,033		$ 8,791

[1] The following table summarizes assets and liabilities related to our consolidated variable interest entities ("VIEs") as of March 31, 2015 and December 31, 2014 which are consolidated on our balance sheet. Assets and liabilities exclude intercompany balances that eliminate in consolidation. See Note 216, "Variable Interest Entities," for additional information. Assets: Other assets $372 million and $380 million. Total assets $372 million and $380 million respectively. Liabilities: Long-term debt $92 million and $92 million, Interest, taxes and other liabilities $86 million and $75 million. Total liabilities $178 million and $167 million, respectively.

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Accumulated Other Comprehensive Income (Loss) - (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014		Dec. 31, 2014	Sep. 30, 2014
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$ 158		$ (18)
Other comprehensive income for period:
Net unrealized gains (losses) arising during period, net of tax	(19)		144
Reclassification adjustment for gains realized in net income, net of tax	(14)	[1]	(14)	[1]
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax	5	[2]	0	[2]
Total other comprehensive income (loss) for period	(28)		130
Balance at end of period	130		112
Unrealized losses on other-than-temporarily impaired debt securities held-to-maturity:
Balance at beginning of period	0		(60)
Other comprehensive income for period:
Reclassification adjustment related to the accretion of unrealized other-than-temporary impairment, net of tax	0	[3]	1	[3]
Total other comprehensive income for period	0		1
Balance at end of period	0		(59)
Unrealized (losses) gains on derivatives classified as cash flow hedges:
Balance at beginning of period	(156)		(83)
Other comprehensive income (loss) for period:
Net unrealized losses arising during period, net of tax	(21)		(21)
Reclassification adjustment of losses realized in net income, net of tax	2	[4]	1	[4]
Total other comprehensive income (loss) for period	(19)		(20)
Balance at end of period	(175)		(103)
Pension and postretirement benefit liability:
Balance at beginning of period	(3)		2
Other comprehensive income for period:
Change in unfunded pension and postretirement liability, net of tax	1		0
Total other comprehensive income for period	1		0
Balance at end of period	(2)		2
Total accumulated other comprehensive loss at end of period	(47)		(48)		(1)
AOCI included in pretax unrealized losses						$ (234)

[1] Amount reclassified to net income is included in other securities gains, net in our consolidated statement of income.

[2] Amount amortized to net income is included in interest income in our consolidated statement of income. During the third quarter of 2014, we transferred securities from available-for-sale to held-to-maturity. At the date of transfer, AOCI included net pretax unrealized losses of $234 million related to the transferred securities which will be amortized over the remaining contractual life of each security as an adjustment of yield in a manner consistent with the amortization of any premium or discount.

[3] Amount reclassified to the carrying value of the debt securities is included in securities held-to-maturity in our consolidated balance sheet.

[4] Amount reclassified to net income is included in interest income (expense) in our consolidated statement of income.

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Loans - Summary of Receivables which were Modified and as Result Became Classified as TDR Loans (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Financing Receivable, Impaired [Line Items]
Total	$ 75	$ 46
Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
Total	39	10
Commercial Loans [Member] | Business and Corporate Banking [Member]
Financing Receivable, Impaired [Line Items]
Total	26	10
Commercial Loans [Member] | Global Banking [Member]
Financing Receivable, Impaired [Line Items]
Total	13	0
Consumer Loans [Member]
Financing Receivable, Impaired [Line Items]
Total	36	36
Consumer Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Total	35	33
Consumer Loans [Member] | Home Equity Line of Credit [Member]
Financing Receivable, Impaired [Line Items]
Total	0	1
Consumer Loans [Member] | Credit Cards [Member]
Financing Receivable, Impaired [Line Items]
Total	$ 1	$ 2

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Related Party Transactions - Summary of Loans (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
HSBC Finance Corporation [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	$ 3,014	$ 3,014
HMUS [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	764	563
HSBC Bank Brasil [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	1,110	1,108
Other Affiliates [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	128	136
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	$ 5,016	$ 4,821

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Mortgage servicing rights	$	140	$	159
Purchased credit card relationships	46		47
Total intangible assets	$	186	$	206

Fair Value of Residential MSRs

The following table summarizes the critical assumptions used to calculate the fair value of MSRs:

	March 31, 2015		December 31, 2014
Annualized constant prepayment rate ("CPR")	18.2	%	15.9	%
Constant discount rate	14.0	%	14.1	%
Weighted average life (in years)	3.7		4.1

Residential MSRs Activity

The following table summarizes MSRs activity:

Three Months Ended March 31,	2015			2014
	(in millions)
Fair value of MSRs:
Beginning balance	$	159		$	227
Changes in fair value due to changes in valuation model inputs or assumptions	(11		)	(12		)
Reductions related to customer payments	(8		)	(10		)
Ending balance	$	140		$	205

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Loans - Impaired Commercial Loans Considered as TDR Loans - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
TDR Loans	$ 1,242	[1],[2],[3]	$ 1,208	[1],[2],[3]
Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	236	[2],[3]	210	[2],[3]
Unpaid principal balance of impaired commercial loans	344		354
Commercial Loans [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	179	[2],[3]	186	[2],[3]
Unpaid principal balance of impaired commercial loans	223		224
Commercial Loans [Member] | Business and Corporate Banking [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	44	[2],[3]	24	[2],[3]
Unpaid principal balance of impaired commercial loans	101		122
Commercial Loans [Member] | Global Banking [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	13	[2],[3]	0	[2],[3]
Unpaid principal balance of impaired commercial loans	13		0
Commercial Loans [Member] | Other Commercial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance of impaired commercial loans	$ 7		$ 8

[1] Includes $451 million and $485 million at March 31, 2015 and December 31, 2014, respectively, of loans which are classified as nonaccrual.

[2] The TDR Loan balances included in the table above reflect the current carrying amount of TDR Loans and includes all basis adjustments on the loan, such as unearned income, unamortized deferred fees and costs on originated loans, partial charge-offs and premiums or discounts on purchased loans. The following table reflects the unpaid principal balance of TDR Loans:March 31, 2015 December 31, 2014 (in millions)Commercial loans: Construction and other real estate$197 $201Business and corporate banking50 51Global banking13 —Total commercial260 252Consumer loans: Residential mortgages1,147 1,139 Home equity mortgages44 44Credit cards6 6Total consumer1,197 1,189Total$1,457 $1,441

[3] TDR Loans are considered to be impaired loans. For consumer loans, all such loans are considered impaired loans regardless of accrual status. For commercial loans, impaired loans include other loans in addition to TDR Loans which totaled $79 million and $85 million at March 31, 2015 and December 31, 2014, respectively.

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Business Segments

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

We have four distinct business segments that we utilize for management reporting and analysis purposes, which are aligned with HSBC's global businesses and business strategy: Retail Banking and Wealth Management ("RBWM"), Commercial Banking ("CMB"), Global Banking and Markets ("GB&M") and Private Banking ("PB"). There have been no changes in the basis of our segmentation or measurement of segment profit as compared with the presentation in our 2014 Form 10-K.

Our segment results are presented in accordance with HSBC Group accounting and reporting policies, which apply International Financial Reporting Standards ("IFRS") and, as a result, our segment results are prepared and presented using financial information prepared on the basis of HSBC Group's accounting and reporting policies ("Group Reporting Basis") (a non-U.S. GAAP financial measure) as operating results are monitored and reviewed, trends are evaluated and decisions about allocating resources, such as employees, are primarily made on this basis. However, we continue to monitor capital adequacy, establish dividend policy and report to regulatory agencies on a U.S. GAAP basis.

We are currently in the process of re-evaluating the financial information used to manage our businesses, including the scope and content of the U.S. GAAP financial data being reported to our Management and our Board. To the extent we make changes to this reporting in 2015, we will evaluate any impact such changes may have on our segment reporting.

A summary of differences between U.S. GAAP and Group Reporting Basis as they impact our results are presented in Note 23, "Business Segments," in our 2014 Form 10-K. There have been no significant changes since December 31, 2014 in the differences between U.S. GAAP and Group Reporting Basis.

The following table summarizes the results for each segment on a Group Reporting Basis, as well as provides a reconciliation of total results under the Group Reporting Basis to U.S. GAAP consolidated totals:

	Group Reporting Basis Consolidated Amounts
	RBWM			CMB		GB&M		PB			Other			Adjustments/ Reconciling Items			Total		Group Reporting Basis Adjustments(3)			Group Reporting Basis Reclassi- fications(4)			U.S. GAAP Consolidated Totals
	(in millions)
Three Months Ended March 31, 2015
Net interest income(1)	$	197		$	201	$	118	$	49		$	(6	)	$	(5	)	$	554	$	(14	)	$	66		$	606
Other operating income	87			77		266		24			82			5			541		(10		)	(67		)	464
Total operating income	284			278		384		73			76			—			1,095		(24		)	(1		)	1,070
Loan impairment charges	22			10		8		—			—			—			40		14			(1		)	53
	262			268		376		73			76			—			1,055		(38		)	—			1,017
Operating expenses(2)	281			169		259		58			27			—			794		(17		)	—			777
Profit (loss) before income tax expense	$	(19	)	$	99	$	117	$	15		$	49		$	—		$	261	$	(21	)	$	—		$	240
Balances at end of period:
Total assets	$	19,856		$	30,788	$	198,942	$	8,121		$	804		$	—		$	258,511	$	(56,958	)	$	41		$	201,594
Total loans, net	16,902			29,649		23,341		6,424			—			—			76,316		891			3,548			80,755
Goodwill	581			358		—		325			—			—			1,264		348			—			1,612
Total deposits	29,240			22,209		38,891		10,973			—			—			101,313		(5,975		)	23,756			119,094
Three Months Ended March 31, 2014
Net interest income(1)	$	198		$	187	$	97	$	49		$	(13	)	$	(5	)	$	513	$	(15	)	$	21		$	519
Other operating income	113			68		294		25			25			5			530		(4		)	(26		)	500
Total operating income	311			255		391		74			12			—			1,043		(19		)	(5		)	1,019
Loan impairment charges	2			7		15		(5		)	—			—			19		4			(7		)	16
	309			248		376		79			12			—			1,024		(23		)	2			1,003
Operating expenses(2)	279			158		239		55			25			—			756		(8		)	2			750
Profit (loss) before income tax expense	$	30		$	90	$	137	$	24		$	(13	)	$	—		$	268	$	(15	)	$	—		$	253
Balances at end of period:
Total assets	$	19,143		$	25,594	$	181,545	$	8,231		$	723		$	—		$	235,236	$	(47,888	)	$	(174	)	$	187,174
Total loans, net	16,177			24,509		17,485		6,022			—			—			64,193		1,411			2,719			68,323
Goodwill	581			358		—		325			—			—			1,264		348			—			1,612
Total deposits	30,206			21,254		30,126		12,529			—			—			94,115		(3,247		)	14,663			105,531

⁽¹⁾  Net interest income of each segment represents the difference between actual interest earned on assets and interest paid on liabilities of the segment adjusted for a funding charge or credit. Segments are charged a cost to fund assets (e.g. customer loans) and receive a funding credit for funds provided (e.g. customer deposits) based on equivalent market rates. The objective of these charges/credits is to transfer interest rate risk from the segments to one centralized unit in Balance Sheet Management and more appropriately reflect the profitability of segments.

⁽²⁾  Expenses for the segments include fully apportioned corporate overhead expenses.

⁽³⁾  Represents adjustments associated with differences between the Group Reporting Basis and the U.S. GAAP basis of accounting.

⁽⁴⁾  Represents differences in financial statement presentation between Group Reporting Basis and U.S. GAAP.

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting as well as collateral, and therefore are not representative of our exposure. The table below presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting. Derivative assets and liabilities which are not subject to an enforceable master netting agreement, or are subject to a netting agreement that we have not yet determined to be enforceable, have not been netted in the table below. Where we have received or posted collateral under credit support agreements, but have not yet determined such agreements are enforceable, the related collateral also has not been netted in the table below.

	March 31, 2015				December 31, 2014
	Derivative assets		Derivative liabilities		Derivative assets		Derivative liabilities
	(in millions)
Derivatives accounted for as fair value hedges(1)
OTC-cleared(2)	$	11	$	298	$	1	$	206
Bilateral OTC(2)	3		353		4		268
Interest rate contracts	14		651		5		474
Derivatives accounted for as cash flow hedges(1)
Foreign exchange contracts - bilateral OTC(2)	71		—		45		—
OTC-cleared(2)	8		7		8		6
Bilateral OTC(2)	—		194		—		161
Interest rate contracts	8		201		8		167
Total derivatives accounted for as hedges	93		852		58		641
Trading derivatives not accounted for as hedges(3)
Exchange-traded(2)	30		51		46		43
OTC-cleared(2)	22,608		22,240		16,862		17,557
Bilateral OTC(2)	28,247		28,985		28,370		28,398
Interest rate contracts	50,885		51,276		45,278		45,998
Exchange-traded(2)	22		47		—		13
Bilateral OTC(2)	27,683		26,262		22,219		20,826
Foreign exchange contracts	27,705		26,309		22,219		20,839
Equity contracts - bilateral OTC(2)	1,569		1,568		1,635		1,632
Exchange-traded(2)	33		31		59		18
Bilateral OTC(2)	794		645		1,013		591
Precious metals contracts	827		676		1,072		609
OTC-cleared(2)	635		784		604		730
Bilateral OTC(2)	3,550		3,205		3,518		3,288
Credit contracts	4,185		3,989		4,122		4,018
Other derivatives not accounted for as hedges(1)
Interest rate contracts - bilateral OTC(2)	865		114		768		88
Foreign exchange contracts - bilateral OTC(2)	—		72		—		44
Equity contracts - bilateral OTC(2)	841		157		757		167
Precious metals contracts - bilateral OTC(2)	—		—		—		5
Credit contracts - bilateral OTC(2)	98		9		73		9
Total derivatives	87,068		85,022		75,982		74,050
Less: Gross amounts of receivable / payable subject to enforceable master netting agreements(4)(6)	72,092		72,092		63,913		63,913
Less: Gross amounts of cash collateral received / posted subject to enforceable master netting agreements(5)(6)	6,573		1,084		4,811		1,724
Net amounts of derivative assets / liabilities presented in the balance sheet	8,403		11,846		7,258		8,413
Less: Gross amounts of financial instrument collateral received / posted subject to enforceable master netting agreements but not offset in the consolidated balance sheet	1,273		5,420		1,837		4,398
Net amounts of derivative assets / liabilities	$	7,130	$	6,426	$	5,421	$	4,015

⁽¹⁾  Derivative assets / liabilities related to cash flow hedges, fair value hedges and derivative instruments held for purposes other than for trading are recorded in other assets / interest, taxes and other liabilities on the consolidated balance sheet.

⁽²⁾  Over-the-counter (OTC) derivatives include derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. The credit risk associated with bilateral OTC derivatives is managed through master netting agreements and obtaining collateral. OTC-cleared derivatives are executed bilaterally in the OTC market but then novated to a central clearing counterparty, whereby the central clearing counterparty becomes the counterparty to both of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange that provides pre-trade price transparency. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining required by central clearing counterparties.

⁽³⁾  Trading related derivative assets/liabilities are recorded in trading assets/trading liabilities on the consolidated balance sheet.

⁽⁴⁾  Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements.

⁽⁵⁾  Represents the netting of cash collateral posted and received by counterparty under enforceable credit support agreements.

⁽⁶⁾  Netting is performed at a counterparty level in cases where enforceable master netting and credit support agreements are in place, regardless of the type of derivative instrument. Therefore, we have not attempted to allocate netting to the different types of derivative instruments shown in the table above.

Derivative Instruments, Gain (Loss)

The following table presents information on gains and losses on derivative instruments held for non-qualifying hedging activities and their locations on the consolidated statement of income:

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended March 31,
		2015			2014
		(in millions)
Interest rate contracts	Gain (loss) on instruments designated at fair value and related derivatives	$	109		$	116
Interest rate contracts	Residential mortgage banking revenue	—			—
Foreign exchange contracts	Gain (loss) on instruments designated at fair value and related derivatives	(1		)	4
Equity contracts	Gain (loss) on instruments designated at fair value and related derivatives	257			81
Precious metals contracts	Gain (loss) on instruments designated at fair value and related derivatives	1			16
Credit contracts	Gain (loss) on instruments designated at fair value and related derivatives	—			1
Credit contracts	Other income	22			(4		)
Total		$	388		$	214

The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in fair value hedges and the hedged items in fair value hedges and their location on the consolidated statement of income:

	Gain (Loss) on Derivative						Gain (Loss) on Hedged Items					Net Ineffective Gain (Loss) Recognized
	Interest Income (Expense)			Other Income			Interest Income (Expense)			Other Income		Other Income
	(in millions)
Three Months Ended March 31, 2015
Interest rate contracts/AFS Securities	$	(54	)	$	(249	)	$	88		$	240	$	(9	)
Interest rate contracts/subordinated debt	3			—			(11		)	—		—
Total	$	(51	)	$	(249	)	$	77		$	240	$	(9	)
Three Months Ended March 31, 2014
Interest rate contracts/AFS Securities	$	(64	)	$	(219	)	$	102		$	213	$	(6	)
Interest rate contracts/subordinated debt	4			(1		)	(15		)	1		—
Total	$	(60	)	$	(220	)	$	87		$	214	$	(6	)

Gains and Losses on Derivative Instruments Designated and Qualifying as Hedging Instruments in Cash Flow Hedges

The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in cash flow hedges (including amounts recognized in AOCI from all terminated cash flow hedges) and their locations on the consolidated statement of income:

	Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)						Location of Gain (Loss) Reclassified from AOCI into Income  (Effective Portion)	Gain (Loss) Reclassed From AOCI into Income (Effective Portion)						Location of Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion)
	2015			2014				2015			2014				2015		2014
	(in millions)
Three Months Ended March 31,
Foreign exchange contracts	$	—		$	1		Interest income (expense)	$	—		$	—		Other income	$	—	$	—
Interest rate contracts	(33		)	(36		)	Interest income (expense)	(3		)	(1		)	Other income	—		—
Total	$	(33	)	$	(35	)		$	(3	)	$	(1	)		$	—	$	—

Gains and Losses on Derivative Instruments Held for other Purposes

The following table presents information on gains and losses on derivative instruments held for trading purposes and their locations on the consolidated statement of income:

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended March 31,
		2015			2014
		(in millions)
Interest rate contracts	Trading revenue	$	470		$	61
Interest rate contracts	Residential mortgage banking revenue	24			11
Foreign exchange contracts	Trading revenue	(356		)	25
Equity contracts	Trading revenue	(1		)	—
Precious metals contracts	Trading revenue	46			8
Credit contracts	Trading revenue	(21		)	(7		)
Total		$	162		$	98

Credit-Risk Related Contingent Features

The following tables summarize our obligation to post additional collateral (from the current collateral level) in certain hypothetical commercially reasonable downgrade scenarios of our long term ratings. It is not appropriate to accumulate or extrapolate information presented in the tables below to determine our total obligation because the information presented to determine the obligation in hypothetical rating scenarios is not mutually exclusive.

	Single-notch downgrade		Two-notch downgrade
Moody’s	A2		A3
	(in millions)
Amount of additional collateral to be posted upon downgrade	$	47	$	414

	Single-notch downgrade		Two-notch downgrade
Standard & Poor's ("S&P")	A+		A
	(in millions)
Amount of additional collateral to be posted upon downgrade	$	—	$	47

Notional Value of Derivative Contracts

The following table summarizes the notional values of derivative contracts:

	March 31, 2015		December 31, 2014
	(in millions)
Interest rate:
Futures and forwards	$	143,809	$	87,406
Swaps	2,913,021		3,096,382
Options written	77,549		70,903
Options purchased	99,543		83,524
	3,233,922		3,338,215
Foreign Exchange:
Swaps, futures and forwards	912,060		866,835
Options written	105,858		117,088
Options purchased	101,442		118,350
Spot	63,229		58,700
	1,182,589		1,160,973
Commodities, equities and precious metals:
Swaps, futures and forwards	46,163		48,263
Options written	16,324		18,015
Options purchased	20,637		23,452
	83,124		89,730
Credit derivatives	237,549		240,737
Total	$	4,737,184	$	4,829,655

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Related Party Transactions - Summary of Related Party Transactions (Income - Expense) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Related Party Transaction [Line Items]
Interest income	$ 833		$ 745
Interest expense	(227)		(226)
Net interest income	606	[1]	519	[1]
Trading revenue	33		133
Servicing and other fees with HSBC affiliates:
Total affiliate income	56		47
Gain on instruments designated at fair value and related derivatives	85		28
Support services from HSBC affiliates:
Total support services from HSBC affiliates	(352)		(354)
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Interest income	30		14
Interest expense	(14)		(18)
Net interest income	16		(4)
Trading revenue	148		852
Servicing and other fees with HSBC affiliates:
Gain on instruments designated at fair value and related derivatives	258		98
Support services from HSBC affiliates:
Total support services from HSBC affiliates	(352)		(354)
Stock based compensation expense with HSBC	(13)	[2]	(7)	[2]
HSBC Markets (USA) Inc. (HMUS) and subsidiaries [Member]
Support services from HSBC affiliates:
Total support services from HSBC affiliates	(64)		(57)
Other Affiliates [Member]
Support services from HSBC affiliates:
Total support services from HSBC affiliates	(48)		(44)
HSBC Technology and Services (USA) (HTSU) [Member]
Support services from HSBC affiliates:
Total support services from HSBC affiliates	(240)		(253)
Fees and Commissions [Member] | HSBC Bank Plc [Member]
Servicing and other fees with HSBC affiliates:
Total affiliate income	19		16
Fees and Commissions [Member] | HSBC Finance Corporation [Member]
Servicing and other fees with HSBC affiliates:
Total affiliate income	16		15
Fees and Commissions [Member] | HSBC Markets (USA) Inc. (HMUS) and subsidiaries [Member]
Servicing and other fees with HSBC affiliates:
Total affiliate income	7		4
Fees and Commissions [Member] | Other Affiliates [Member]
Servicing and other fees with HSBC affiliates:
Total affiliate income	14		12
Other Fees [Member] | Affiliated Entity [Member]
Servicing and other fees with HSBC affiliates:
Total affiliate income	$ 56		$ 47

[1] Net interest income of each segment represents the difference between actual interest earned on assets and interest paid on liabilities of the segment adjusted for a funding charge or credit. Segments are charged a cost to fund assets (e.g. customer loans) and receive a funding credit for funds provided (e.g. customer deposits) based on equivalent market rates. The objective of these charges/credits is to transfer interest rate risk from the segments to one centralized unit in Balance Sheet Management and more appropriately reflect the profitability of segments.

[2] Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income. Employees also may participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 12, "Pension and Other Postretirement Benefits."

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Fair Value Measurements - Quantitative Information about Nonrecurring Fair Value Measurement of Assets and Liabilities Classified as Level 3 (Detail) (Level 3 [Member], USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015		Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	53		58
Residential Mortgage [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	5	[1]	5	[1]
Impaired commercial loans [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	48	[2]	53	[2]
Fair Value, Measurements, Nonrecurring [Member] | Residential Mortgage [Member] | Minimum [Member] | Third Party Appraisal [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Fair Value Inputs, Loss Severity	0.00%		0.00%
Fair Value, Measurements, Nonrecurring [Member] | Residential Mortgage [Member] | Maximum [Member] | Third Party Appraisal [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Fair Value Inputs, Loss Severity	100.00%		100.00%
Fair Value, Measurements, Nonrecurring [Member] | Impaired commercial loans [Member] | Minimum [Member] | Third Party Appraisal [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Fair Value Inputs, Loss Severity	17.00%		8.00%
Fair Value, Measurements, Nonrecurring [Member] | Impaired commercial loans [Member] | Maximum [Member] | Third Party Appraisal [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Fair Value Inputs, Loss Severity	40.00%		47.00%

[1] As of March 31, 2015 and December 31, 2014, the fair value of the loans held for sale was below cost. Certain residential mortgage loans held for sale have been classified as a Level 3 fair value measurement within the fair value hierarchy as the underlying real estate properties which determine fair value are illiquid assets as a result of market conditions and significant inputs in estimating fair value were unobservable. Additionally, the fair value of these properties is affected by, among other things, the location, the payment history and the completeness of the loan documentation.

[2] Certain commercial loans have undergone troubled debt restructurings and are considered impaired. As a matter of practical expedient, we measure the credit impairment of a collateral-dependent loan based on the fair value of the collateral asset. The collateral often involves real estate properties that are illiquid due to market conditions. As a result, these loans are classified as a Level 3 fair value measurement within the fair value hierarchy.

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Variable Interest Entities

3 Months Ended

Mar. 31, 2015

Variable Interest Entities [Abstract]

Variable Interest Entities

Variable Interest Entities

In the ordinary course of business, we have organized special purpose entities ("SPEs") primarily to structure financial products to meet our clients' investment needs, to facilitate clients to access and raise financing from capital markets and to securitize financial assets held to meet our own funding needs. For disclosure purposes, we aggregate SPEs based on the purpose, risk characteristics and business activities of the SPEs. An SPE is a VIE if it lacks sufficient equity investment at risk to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack either a) the power through voting or similar rights to direct the activities of the entity that most significantly impacts the entity's economic performance; or b) the obligation to absorb the entity's expected losses, the right to receive the expected residual returns, or both.

Variable Interest Entities  We consolidate VIEs in which we hold a controlling financial interest as evidenced by the power to direct the activities of a VIE that most significantly impact its economic performance and the obligation to absorb losses of, or the right to receive benefits from, the VIE that could be potentially significant to the VIE and therefore are deemed to be the primary beneficiary. We take into account our entire involvement in a VIE (explicit or implicit) in identifying variable interests that individually or in the aggregate could be significant enough to warrant our designation as the primary beneficiary and hence require us to consolidate the VIE or otherwise require us to make appropriate disclosures. We consider our involvement to be significant where we, among other things, (i) provide liquidity put options or other liquidity facilities to support the VIE's debt obligations; (ii) enter into derivative contracts to absorb the risks and benefits from the VIE or from the assets held by the VIE; (iii) provide a financial guarantee that covers assets held or liabilities issued; (iv) design, organize and structure the transaction; and (v) retain a financial or servicing interest in the VIE.

We are required to evaluate whether to consolidate a VIE when we first become involved and on an ongoing basis. In almost all cases, a qualitative analysis of our involvement in the entity provides sufficient evidence to determine whether we are the primary beneficiary. In rare cases, a more detailed analysis to quantify the extent of variability to be absorbed by each variable interest holder is required to determine the primary beneficiary.

Consolidated VIEs  The following table summarizes assets and liabilities related to our consolidated VIEs as of March 31, 2015 and December 31, 2014 which are consolidated on our balance sheets. Assets and liabilities exclude intercompany balances that eliminate on consolidation.

	March 31, 2015				December 31, 2014
	Consolidated Assets		Consolidated Liabilities		Consolidated Assets		Consolidated Liabilities
	(in millions)
Low income housing limited liability partnership:
Other assets	$	372	$	—	$	380	$	—
Long-term debt	—		92		—		92
Interest, taxes and other liabilities	—		86		—		75
Total	$	372	$	178	$	380	$	167

Low income housing limited liability partnershipIn 2009, all low income housing investments held by us at the time were transferred to a Limited Liability Partnership ("LLP") in exchange for debt and equity while a third party invested cash for an equity interest that is mandatorily redeemable at a future date. The LLP was created in order to ensure the utilization of future tax benefits from these low income housing tax projects. The LLP was deemed to be a VIE as it does not have sufficient equity investment at risk to finance its activities. Upon entering into this transaction, we concluded that we are the primary beneficiary of the LLP due to the nature of our continuing involvement and, as a result, consolidate the LLP and report the equity interest issued to the third party investor in other liabilities and the assets of the LLP in other assets on our consolidated balance sheet. The investments held by the LLP represent equity investments in the underlying low income housing partnerships. As a practical expedient, we amortize the investments in proportion to the allocated tax benefits under the proportional amortization method of accounting. The LLP does not consolidate the underlying partnerships because it does not have the power to direct the activities of the partnerships that most significantly impact the economic performance of the partnerships.

Unconsolidated VIEs  We also have variable interests in other VIEs that are not consolidated because we are not the primary beneficiary. The following table provides additional information on these unconsolidated VIEs, including the variable interests held by us and our maximum exposure to loss arising from our involvements in these VIEs, as of March 31, 2015 and December 31, 2014:

	Variable Interests Held Classified as Assets		Variable Interests Held Classified as Liabilities		Total Assets in Unconsolidated VIEs		Maximum Exposure to Loss
	(in millions)
At March 31, 2015
Asset-backed commercial paper conduits	$	50	$	—	$	10,761	$	2,710
Structured note vehicles	2,848		7		5,876		5,868
Low income housing partnerships	44		38		141		44
Total	$	2,942	$	45	$	16,778	$	8,622
At December 31, 2014
Asset-backed commercial paper conduits	$	29	$	—	$	10,984	$	2,685
Structured note vehicles	2,841		7		5,867		5,860
Low income housing partnerships	44		39		141		44
Total	$	2,914	$	46	$	16,992	$	8,589

Information on the types of variable interest entities with which we are involved, the nature of our involvement and the variable interests held in those entities is presented below.

Asset-backed commercial paper ("ABCP") conduitsWe provide liquidity facilities to Regency, a multi-seller ABCP conduit consolidated by an HSBC affiliate. Customers sell financial assets, such as trade receivables, to Regency, which funds the purchases by issuing short-term highly-rated commercial paper collateralized by the assets acquired. We, along with other financial institutions, provide liquidity facilities to Regency in the form of lines of credit or asset purchase commitments. These liquidity facilities support transactions associated with a specific seller of assets to the conduit and we would only be required to provide support in the event of certain triggers associated with those transactions and assets. Our obligations are generally pari passu with those of other institutions that also provide liquidity support to the same conduit or for the same transactions. We do not provide any program-wide credit enhancements to ABCP conduits.

Each seller of assets to an ABCP conduit typically provides credit enhancements in the form of asset overcollateralization and, therefore, bears the risk of first loss related to the specific assets transferred. We do not transfer our own assets to Regency. We also do not provide the majority of the liquidity facilities to Regency. We have no ownership interests in, perform no administrative duties for, and do not service any of the assets held by Regency. We are not the primary beneficiary and do not consolidate Regency. Credit risk related to the liquidity facilities provided is managed by subjecting these facilities to our normal underwriting and risk management processes. The $2,710 million maximum exposure to loss presented in the table above represents the maximum amount of loans and asset purchases we could be required to fund under the liquidity facilities. The maximum loss exposure is estimated assuming the facilities are fully drawn and the underlying collateralized assets are in default with zero recovery value.

Structured note vehiclesOur involvement in structured note vehicles includes derivatives such as interest rate and currency swaps and investments in the vehicles' debt instruments. In limited circumstances, we entered into total return swaps taking on the risks and benefits of certain structured notes issued by unconsolidated VIEs. The same risks and benefits are passed on to third party entities through back-end total return swaps. We earn a spread for facilitating the transaction. Our maximum exposure to loss is the notional amount of the derivatives wrapping the structured notes. The maximum exposure to loss will occur in the unlikely scenario where the value of the structured notes is reduced to zero and, at the same time, the counterparty of the back-end swap defaults with zero recovery. In other situations, we hold credit default swaps with structured note issuing VIEs under which we receive credit protection on specified reference assets in exchange for the payment of a premium. Through these derivatives, the VIEs assume the credit risk associated with the reference assets which are then passed on to the holders of the debt instruments they issue. Because they create rather than absorb variability, the credit default swaps we hold are not considered variable interests. We record all investments in, and derivative contracts with, unconsolidated structured note vehicles at fair value on our consolidated balance sheet.

Low income housing partnerships Separately from the low income housing LLP discussed above, we invest as a limited partner in low income housing partnerships that operate qualified affordable housing projects and generate tax benefits, including federal low income housing tax credits, for investors. The partnerships are deemed to be VIEs because they do not have sufficient equity investment at risk and are structured with non-substantive voting rights. We are not the primary beneficiary of the VIEs and do not consolidate them.

Our investment in low income housing partnerships are recorded in other assets on the consolidated balance sheet. As a practical expedient, we amortize the investment in proportion to the allocated tax benefits under the proportional amortization method of accounting. The maximum exposure to loss shown in the table above represents our recorded investment.

Beneficial interests issued by third-party sponsored securitization entitiesWe hold certain beneficial interests such as mortgage-backed securities issued by third party sponsored securitization entities which may be considered VIEs. The investments are transacted at arm's-length and decisions to invest are based on a credit analysis of the underlying collateral assets or the issuer. We are a passive investor in these issuers and do not have the power to direct the activities of these issuers. As such, we do not consolidate these securitization entities. Additionally, we do not have other involvements in servicing or managing the collateral assets or provide financial or liquidity support to these issuers which potentially give rise to risk of loss exposure. These investments are an integral part of the disclosure in Note 3, "Securities," and Note 18, "Fair Value Measurements," and, therefore, are not disclosed in this note to avoid redundancy.

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Loans - Status of Commercial Loan Portfolio (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Accruing Loans Contractually Past Due 90 days or More	$ 20	$ 21
Total loans	81,458	77,741	68,897
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing Loans	61,494	57,947
Nonaccrual loans	152	139
Accruing Loans Contractually Past Due 90 days or More	1	1
Total loans	61,647	58,087
Commercial Loans [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing Loans	10,827	10,235
Nonaccrual loans	74	65
Accruing Loans Contractually Past Due 90 days or More	0	0
Total loans	10,901	10,300	9,165
Commercial Loans [Member] | Business and Corporate Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing Loans	19,172	17,744
Nonaccrual loans	78	74
Accruing Loans Contractually Past Due 90 days or More	1	1
Total loans	19,251	17,819	15,698
Commercial Loans [Member] | Global Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing Loans	28,029	26,387
Nonaccrual loans	0	0
Accruing Loans Contractually Past Due 90 days or More	0	0
Total loans	28,029	26,387	21,979
Commercial Loans [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing Loans	3,466	3,581
Nonaccrual loans	0	0
Accruing Loans Contractually Past Due 90 days or More	0	0
Total loans	$ 3,466	$ 3,581	$ 3,051

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Guarantee Arrangements and Pledged Assets and Collateral - Carrying Value and Contractual Amounts of our Sell Protection Credit Derivatives and Major Off-Balance Sheet Guarantee Arrangements (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Guarantor Obligations [Line Items]
Carrying Value	$ (1,776)		$ (1,484)
Notional/Maximum Exposure to Loss	127,512		128,894
Credit derivatives [Member]
Guarantor Obligations [Line Items]
Carrying Value	(1,776)	[1],[2]	(1,484)	[1],[2]
Notional/Maximum Exposure to Loss	115,685	[1],[2]	117,768	[1],[2]
Financial standby letters of credit, net of participations [Member]
Guarantor Obligations [Line Items]
Carrying Value	0	[3],[4]	0	[3],[4]
Notional/Maximum Exposure to Loss	6,174	[3],[4]	5,358	[3],[4]
Performance (non-financial) guarantees, net of participations [Member]
Guarantor Obligations [Line Items]
Carrying Value	0	[3],[4]	0	[3],[4]
Notional/Maximum Exposure to Loss	2,943	[3],[4]	3,083	[3],[4]
Liquidity asset purchase agreements [Member]
Guarantor Obligations [Line Items]
Carrying Value	0	[3]	0	[3]
Notional/Maximum Exposure to Loss	$ 2,710	[3]	$ 2,685	[3]

[1] Includes $32,035 million and $32,688 million of notional issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

[2] For credit derivatives, the maximum loss is represented by the notional amounts without consideration of mitigating effects from collateral or recourse arrangements.

[3] For standby letters of credit and liquidity asset purchase agreements, maximum loss represents losses to be recognized assuming the letter of credit and liquidity facilities have been fully drawn and the obligors have defaulted with zero recovery.

[4] Includes $880 million and $937 million issued for the benefit of HSBC affiliates at March 31, 2015 and December 31, 2014, respectively.

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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (USD $) In Millions, unless otherwise specified	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at beginning of period at Dec. 31, 2013		$ 1,565
Balance at beginning of period at Dec. 31, 2013			0	14,106	952	(159)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Capital contribution from parent				0
Employee benefit plans				6
Net income	104				104
Cash dividends declared on preferred stock					(18)
Other comprehensive income (loss), net of tax	111					111
Balance at end of period at Mar. 31, 2014	16,667	1,565
Balance at end of period at Mar. 31, 2014	15,102		0	14,112	1,038	(48)
Balance at beginning of period at Dec. 31, 2014	16,967	1,565
Balance at beginning of period at Dec. 31, 2014	15,402		0	14,170	1,233	(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Capital contribution from parent				4,000
Employee benefit plans				4
Net income	164				164
Cash dividends declared on preferred stock					(18)
Other comprehensive income (loss), net of tax	(46)					(46)
Balance at end of period at Mar. 31, 2015	21,071	1,565
Balance at end of period at Mar. 31, 2015	$ 19,506		$ 0	$ 18,174	$ 1,379	$ (47)

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CONSOLIDATED STATEMENT OF INCOME (UNAUDITIED) Consolidated Statement of Income (Loss) Parenthetical (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Net other-than-temporary impairment losses	$ 2	[1]
Other Revenues [Member]
Net other-than-temporary impairment losses	$ 2	[1]

[1] During the three months ended March 31, 2015, there were no other-than-temporary impairment ("OTTI") losses on securities recognized in other revenues and no OTTI losses in the non-credit component of securities recognized in accumulated other comprehensive loss ("AOCI"), net of tax. During the three months ended March 31, 2014, OTTI losses on securities held-to-maturity totaling $2 million were recognized in other revenues. There were no OTTI losses in the non-credit component of such impaired securities recognized in AOCI, net of tax.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

In the normal course of business, the derivative instruments entered into are for trading, market making and risk management purposes. For financial reporting purposes, a derivative instrument is designated in one of the following categories: (a) financial instruments held for trading, (b) hedging instruments designated as a qualifying hedge under derivative and hedge accounting principles or (c) a non-qualifying economic hedge. The derivative instruments held are predominantly swaps, futures, options and forward contracts. All derivatives are stated at fair value. Where we enter into enforceable master netting arrangements with counterparties, the master netting arrangements permit us to net those derivative asset and liability positions and to offset cash collateral held and posted with the same counterparty.

The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting as well as collateral, and therefore are not representative of our exposure. The table below presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting. Derivative assets and liabilities which are not subject to an enforceable master netting agreement, or are subject to a netting agreement that we have not yet determined to be enforceable, have not been netted in the table below. Where we have received or posted collateral under credit support agreements, but have not yet determined such agreements are enforceable, the related collateral also has not been netted in the table below.

	March 31, 2015				December 31, 2014
	Derivative assets		Derivative liabilities		Derivative assets		Derivative liabilities
	(in millions)
Derivatives accounted for as fair value hedges(1)
OTC-cleared(2)	$	11	$	298	$	1	$	206
Bilateral OTC(2)	3		353		4		268
Interest rate contracts	14		651		5		474
Derivatives accounted for as cash flow hedges(1)
Foreign exchange contracts - bilateral OTC(2)	71		—		45		—
OTC-cleared(2)	8		7		8		6
Bilateral OTC(2)	—		194		—		161
Interest rate contracts	8		201		8		167
Total derivatives accounted for as hedges	93		852		58		641
Trading derivatives not accounted for as hedges(3)
Exchange-traded(2)	30		51		46		43
OTC-cleared(2)	22,608		22,240		16,862		17,557
Bilateral OTC(2)	28,247		28,985		28,370		28,398
Interest rate contracts	50,885		51,276		45,278		45,998
Exchange-traded(2)	22		47		—		13
Bilateral OTC(2)	27,683		26,262		22,219		20,826
Foreign exchange contracts	27,705		26,309		22,219		20,839
Equity contracts - bilateral OTC(2)	1,569		1,568		1,635		1,632
Exchange-traded(2)	33		31		59		18
Bilateral OTC(2)	794		645		1,013		591
Precious metals contracts	827		676		1,072		609
OTC-cleared(2)	635		784		604		730
Bilateral OTC(2)	3,550		3,205		3,518		3,288
Credit contracts	4,185		3,989		4,122		4,018
Other derivatives not accounted for as hedges(1)
Interest rate contracts - bilateral OTC(2)	865		114		768		88
Foreign exchange contracts - bilateral OTC(2)	—		72		—		44
Equity contracts - bilateral OTC(2)	841		157		757		167
Precious metals contracts - bilateral OTC(2)	—		—		—		5
Credit contracts - bilateral OTC(2)	98		9		73		9
Total derivatives	87,068		85,022		75,982		74,050
Less: Gross amounts of receivable / payable subject to enforceable master netting agreements(4)(6)	72,092		72,092		63,913		63,913
Less: Gross amounts of cash collateral received / posted subject to enforceable master netting agreements(5)(6)	6,573		1,084		4,811		1,724
Net amounts of derivative assets / liabilities presented in the balance sheet	8,403		11,846		7,258		8,413
Less: Gross amounts of financial instrument collateral received / posted subject to enforceable master netting agreements but not offset in the consolidated balance sheet	1,273		5,420		1,837		4,398
Net amounts of derivative assets / liabilities	$	7,130	$	6,426	$	5,421	$	4,015

⁽¹⁾  Derivative assets / liabilities related to cash flow hedges, fair value hedges and derivative instruments held for purposes other than for trading are recorded in other assets / interest, taxes and other liabilities on the consolidated balance sheet.

⁽²⁾  Over-the-counter (OTC) derivatives include derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. The credit risk associated with bilateral OTC derivatives is managed through master netting agreements and obtaining collateral. OTC-cleared derivatives are executed bilaterally in the OTC market but then novated to a central clearing counterparty, whereby the central clearing counterparty becomes the counterparty to both of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange that provides pre-trade price transparency. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining required by central clearing counterparties.

⁽³⁾  Trading related derivative assets/liabilities are recorded in trading assets/trading liabilities on the consolidated balance sheet.

⁽⁴⁾  Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements.

⁽⁵⁾  Represents the netting of cash collateral posted and received by counterparty under enforceable credit support agreements.

⁽⁶⁾  Netting is performed at a counterparty level in cases where enforceable master netting and credit support agreements are in place, regardless of the type of derivative instrument. Therefore, we have not attempted to allocate netting to the different types of derivative instruments shown in the table above.

See Note 17, "Guarantee Arrangements, Pledged Assets and Collateral," for further information on offsetting related to resale and repurchase agreements and securities borrowing and lending arrangements.

Derivatives Held for Risk Management Purposes  Our risk management policy requires us to identify, analyze and manage risks arising from the activities conducted during the normal course of business. We use derivative instruments as an asset and liability management tool to manage our exposures in interest rate, foreign currency and credit risks in existing assets and liabilities, commitments and forecasted transactions. The accounting for changes in fair value of a derivative instrument will depend on whether the derivative has been designated and qualifies for hedge accounting.

We designate derivative instruments to offset the fair value risk and cash flow risk arising from fixed-rate and floating-rate assets and liabilities as well as forecasted transactions. We assess the hedging relationships, both at the inception of the hedge and on an ongoing basis, using a regression approach to determine whether the designated hedging instrument is highly effective in offsetting changes in the fair value or the cash flows attributable to the hedged risk. Accounting principles for qualifying hedges require us to prepare detailed documentation describing the relationship between the hedging instrument and the hedged item, including, but not limited to, the risk management objective, the hedging strategy and the methods to assess and measure the ineffectiveness of the hedging relationship. We discontinue hedge accounting when we determine that the hedge is no longer highly effective, the hedging instrument is terminated, sold or expired, the designated forecasted transaction is not probable of occurring, or when the designation is removed by us.

Fair Value Hedges  In the normal course of business, we hold fixed-rate loans and securities and issue fixed-rate senior and subordinated debt obligations. The fair value of fixed-rate (U.S. dollar and non-U.S. dollar denominated) assets and liabilities fluctuates in response to changes in interest rates or foreign currency exchange rates. We utilize interest rate swaps, forward and futures contracts and foreign currency swaps to minimize the effect on earnings caused by interest rate and foreign currency volatility.

The changes in the fair value of the hedged item designated in a qualifying hedge are captured as an adjustment to the carrying amount of the hedged item (basis adjustment). If the hedging relationship is terminated and the hedged item continues to exist, the basis adjustment is amortized over the remaining life of the hedged item. We recorded basis adjustments for active fair value hedges which decreased the carrying amount of our debt by less than $1 million during the three months ended March 31, 2015, compared with an increase in the carrying amount of our debt of $1 million during the three months ended March 31, 2014. We amortized $1 million and $3 million of basis adjustments related to terminated and/or re-designated fair value hedge relationships of our debt during the three months ended March 31, 2015 and 2014, respectively. The total accumulated unamortized basis adjustments for terminated fair value hedges amounted to increases in the carrying amount of our debt of $19 million and $21 millionas of March 31, 2015 and December 31, 2014, respectively. Basis adjustments for active fair value hedges of available-for-sale ("AFS") securities increased the carrying amount of the securities by $219 million during the three months ended March 31, 2015, compared with an increase of $176 million during the three months ended March 31, 2014. Total accumulated unamortized basis adjustments for active fair value hedges of available-for-sale securities amounted to an increase in the carrying amount of $638 millionas of March 31, 2015, compared with an increase of $458 millionas of December 31, 2014.

The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in fair value hedges and the hedged items in fair value hedges and their location on the consolidated statement of income:

	Gain (Loss) on Derivative						Gain (Loss) on Hedged Items					Net Ineffective Gain (Loss) Recognized
	Interest Income (Expense)			Other Income			Interest Income (Expense)			Other Income		Other Income
	(in millions)
Three Months Ended March 31, 2015
Interest rate contracts/AFS Securities	$	(54	)	$	(249	)	$	88		$	240	$	(9	)
Interest rate contracts/subordinated debt	3			—			(11		)	—		—
Total	$	(51	)	$	(249	)	$	77		$	240	$	(9	)
Three Months Ended March 31, 2014
Interest rate contracts/AFS Securities	$	(64	)	$	(219	)	$	102		$	213	$	(6	)
Interest rate contracts/subordinated debt	4			(1		)	(15		)	1		—
Total	$	(60	)	$	(220	)	$	87		$	214	$	(6	)

Cash Flow Hedges  We own or issue floating rate financial instruments and enter into forecasted transactions that give rise to variability in future cash flows. As a part of our risk management strategy, we use interest rate swaps, currency swaps and futures contracts to mitigate risk associated with variability in the cash flows. Changes in fair value of a derivative instrument associated with the effective portion of a qualifying cash flow hedge are recognized initially in other comprehensive income (loss). When the cash flows for which the derivative is hedging materialize and are recorded in income or expense, the associated gain or loss from the hedging derivative previously recorded in accumulated other comprehensive loss is reclassified into earnings in the same accounting period in which the designated forecasted transaction or hedged item affects earnings. If a cash flow hedge of a forecasted transaction is de-designated because it is no longer highly effective, or if the hedge relationship is terminated, the cumulative gain or loss on the hedging derivative to that date will continue to be reported in accumulated other comprehensive loss unless it is probable that the hedged forecasted transaction will not occur by the end of the originally specified time period as documented at the inception of the hedge, at which time the cumulative gain or loss is released into earnings. As of March 31, 2015 and December 31, 2014, active cash flow hedge relationships extend or mature through July 2036. During the three months ended March 31, 2015, $3 million of losses related to terminated and/or re-designated cash flow hedge relationships were amortized to earnings from accumulated other comprehensive loss compared with losses of $1 million during the three months ended March 31, 2014. During the next twelve months, we expect to amortize $11 million of remaining losses to earnings resulting from these terminated and/or re-designated cash flow hedges. The interest accrual related to the derivative contract is recognized in interest income.

The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in cash flow hedges (including amounts recognized in AOCI from all terminated cash flow hedges) and their locations on the consolidated statement of income:

	Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)						Location of Gain (Loss) Reclassified from AOCI into Income  (Effective Portion)	Gain (Loss) Reclassed From AOCI into Income (Effective Portion)						Location of Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion)
	2015			2014				2015			2014				2015		2014
	(in millions)
Three Months Ended March 31,
Foreign exchange contracts	$	—		$	1		Interest income (expense)	$	—		$	—		Other income	$	—	$	—
Interest rate contracts	(33		)	(36		)	Interest income (expense)	(3		)	(1		)	Other income	—		—
Total	$	(33	)	$	(35	)		$	(3	)	$	(1	)		$	—	$	—

Trading Derivatives and Non-Qualifying Hedging Activities  In addition to risk management, we enter into derivative instruments for trading and market making purposes, to repackage risks and structure trades to facilitate clients’ needs for various risk taking and risk modification purposes. We manage our risk exposure by entering into offsetting derivatives with other financial institutions to mitigate the market risks, in part or in full, arising from our trading activities with our clients. In addition, we also enter into buy-protection credit derivatives with other market participants to manage our counterparty credit risk exposure. Where we enter into derivatives for trading purposes, realized and unrealized gains and losses are recognized in trading revenue or residential mortgage banking revenue. Credit losses arising from counterparty risk on over-the-counter derivative instruments and offsetting buy protection credit derivative positions are recognized as an adjustment to the fair value of the derivatives and are recorded in trading revenue.

We have elected the fair value option for certain fixed rate long-term debt issuances as well as hybrid instruments which include all structured notes and structured deposits and have entered into certain derivative contracts related to these debt issuances and hybrid instruments carried at fair value. These derivative contracts are non-qualifying hedges but are considered economic hedges. We have also entered into credit default swaps which are designated as economic hedges against the credit risks within our loan portfolio. In the event of an impairment loss occurring in a loan that is economically hedged, the impairment loss is recognized as provision for credit losses while the gain on the credit default swap is recorded as other income. In addition, we also from time to time have designated certain forward purchase or sale of to-be-announced ("TBA") securities to economically hedge mortgage servicing rights. Changes in the fair value of TBA positions, which are considered derivatives, are recorded in residential mortgage banking revenue. Derivative instruments designated as economic hedges that do not qualify for hedge accounting are recorded at fair value through profit and loss. Realized and unrealized gains and losses are recognized in gain (loss) on instruments designated at fair value and related derivatives, other income or residential mortgage banking revenue while the derivative asset or liability positions are reflected as other assets or other liabilities.

The following table presents information on gains and losses on derivative instruments held for trading purposes and their locations on the consolidated statement of income:

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended March 31,
		2015			2014
		(in millions)
Interest rate contracts	Trading revenue	$	470		$	61
Interest rate contracts	Residential mortgage banking revenue	24			11
Foreign exchange contracts	Trading revenue	(356		)	25
Equity contracts	Trading revenue	(1		)	—
Precious metals contracts	Trading revenue	46			8
Credit contracts	Trading revenue	(21		)	(7		)
Total		$	162		$	98

The following table presents information on gains and losses on derivative instruments held for non-qualifying hedging activities and their locations on the consolidated statement of income:

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended March 31,
		2015			2014
		(in millions)
Interest rate contracts	Gain (loss) on instruments designated at fair value and related derivatives	$	109		$	116
Interest rate contracts	Residential mortgage banking revenue	—			—
Foreign exchange contracts	Gain (loss) on instruments designated at fair value and related derivatives	(1		)	4
Equity contracts	Gain (loss) on instruments designated at fair value and related derivatives	257			81
Precious metals contracts	Gain (loss) on instruments designated at fair value and related derivatives	1			16
Credit contracts	Gain (loss) on instruments designated at fair value and related derivatives	—			1
Credit contracts	Other income	22			(4		)
Total		$	388		$	214

Credit-Risk Related Contingent Features  We enter into total return swap, interest rate swap, cross-currency swap and credit default swap contracts, amongst others which contain provisions that require us to maintain a specific credit rating from each of the major credit rating agencies. Sometimes the derivative instrument transactions are a part of broader structured product transactions. If HSBC Bank USA, National Association's ("HSBC Bank USA") credit ratings were to fall below the current ratings, the counterparties to our derivative instruments could demand us to post additional collateral. The amount of additional collateral required to be posted will depend on whether HSBC Bank USA is downgraded by one or more notches. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position as of March 31, 2015, was $8,862 million for which we had posted collateral of $7,751 million. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position as of December 31, 2014, was $7,006 million for which we had posted collateral of $6,136 million. Substantially all of the collateral posted is in the form of cash or securities available-for-sale. See Note 17, "Guarantee Arrangements, Pledged Assets and Collateral," for further details.

The following tables summarize our obligation to post additional collateral (from the current collateral level) in certain hypothetical commercially reasonable downgrade scenarios of our long term ratings. It is not appropriate to accumulate or extrapolate information presented in the tables below to determine our total obligation because the information presented to determine the obligation in hypothetical rating scenarios is not mutually exclusive.

	Single-notch downgrade		Two-notch downgrade
Moody’s	A2		A3
	(in millions)
Amount of additional collateral to be posted upon downgrade	$	47	$	414

	Single-notch downgrade		Two-notch downgrade
Standard & Poor's ("S&P")	A+		A
	(in millions)
Amount of additional collateral to be posted upon downgrade	$	—	$	47

Notional Value of Derivative Contracts  The following table summarizes the notional values of derivative contracts:

	March 31, 2015		December 31, 2014
	(in millions)
Interest rate:
Futures and forwards	$	143,809	$	87,406
Swaps	2,913,021		3,096,382
Options written	77,549		70,903
Options purchased	99,543		83,524
	3,233,922		3,338,215
Foreign Exchange:
Swaps, futures and forwards	912,060		866,835
Options written	105,858		117,088
Options purchased	101,442		118,350
Spot	63,229		58,700
	1,182,589		1,160,973
Commodities, equities and precious metals:
Swaps, futures and forwards	46,163		48,263
Options written	16,324		18,015
Options purchased	20,637		23,452
	83,124		89,730
Credit derivatives	237,549		240,737
Total	$	4,737,184	$	4,829,655

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Retained Earnings and Regulatory Capital Requirements - Capital Amounts and Ratios in Accordance With Current Banking Regulations (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
HSBC USA Inc [Member]
Total capital ratio:
Capital Amount	$ 24,732		$ 21,017
Well-Capitalized Ratio	10.00%	[1],[2]	10.00%	[3]
Actual Ratio, Total Capital	16.34%		15.78%	[3]
Tier 1 capital ratio:
Capital Amount, Tier 1 capital	19,089		15,205
Well-Capitalized Ratio, Tier 1 capital	6.00%	[1],[2]	6.00%	[1]
Actual Ratio, Tier 1 Capital	12.61%		11.41%	[3]
Common equity Tier 1 ratio:
Capital Amount, Common Equity Tier 1	17,830		13,754
Well Capitalized Ratio Common equity Tier 1	4.50%	[1],[2]	4.50%	[1]
Actual Ratio Common equity Tier 1	11.78%		10.33%	[3]
Tier 1 leverage ratio:
Capital Amount, Tier 1 leverage capital	19,089		15,205
Well-Capitalized Ratio, Tier 1 leverage capital	4.00%	[1],[2]	4.00%	[1]
Actual Ratio, Tier 1 leverage capital	9.91%		8.54%	[3]
Risk weighted assets:
Risk Weighted Assets	151,347		133,211
HSBC Bank USA, National Association [Member]
Total capital ratio:
Capital Amount	26,916		22,760
Well-Capitalized Ratio	10.00%	[1],[2]	10.00%	[1]
Actual Ratio, Total Capital	18.55%		17.86%	[3]
Tier 1 capital ratio:
Capital Amount, Tier 1 capital	22,246		17,215
Well-Capitalized Ratio, Tier 1 capital	8.00%	[1],[2]	8.00%	[1]
Actual Ratio, Tier 1 Capital	15.33%		13.51%	[3]
Common equity Tier 1 ratio:
Capital Amount, Common Equity Tier 1	19,863		17,215
Well Capitalized Ratio Common equity Tier 1	6.50%	[1],[2]	6.50%	[1]
Actual Ratio Common equity Tier 1	13.69%		13.51%	[3]
Tier 1 leverage ratio:
Capital Amount, Tier 1 leverage capital	22,246		17,215
Well-Capitalized Ratio, Tier 1 leverage capital	5.00%	[1],[2]	5.00%	[1]
Actual Ratio, Tier 1 leverage capital	12.02%		10.06%	[3]
Risk weighted assets:
Risk Weighted Assets	$ 145,121		$ 127,456

[1] HSBC USA and HSBC Bank USA are categorized as "well-capitalized," as defined by their principal regulators. To be categorized as well-capitalized under regulatory guidelines, a banking institution must have the ratios reflected in the above table, and must not be subject to a directive, order, or written agreement to meet and maintain specific capital levels. The regulatory ratios for an institution to be well-capitalized under Basel III became effective beginning January 1, 2015 and the new ratios are shown for both periods.

[2] There are no common equity Tier 1 or Tier 1 leverage ratio components in the definition of a well-capitalized bank holding company. The ratios shown in both periods are the required regulatory minimum ratios beginning in 2015.

[3] At March 31, 2015, risk weighted assets are calculated under the Basel III Standardized Approach, which replaced the Basel I risk-based guidance for determining risk weighted assets beginning January 1, 2015.

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Fair Value Option - Components of Gain (Loss) on Instruments at Fair Value and Related Derivatives (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Components Of Gain On Instruments At Fair Value And Related Derivatives [Line Items]
Mark-to-market on the related derivatives	$ 388		$ 214
Gain (loss) on instruments designated at fair value and related derivatives	85		28
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member]
Components Of Gain On Instruments At Fair Value And Related Derivatives [Line Items]
Interest rate and other components	(370)	[1]	(235)	[1]
Credit risk component, total	89	[2],[3]	45	[2],[3]
Total mark-to-market on financial instruments designated at fair value	(281)		(190)
Net realized loss on the financial instruments	0		0
Mark-to-market on the related derivatives	349		201
Net Realized Gain Losses On Related Long Term Debt Derivatives	17		17
Gain (loss) on instruments designated at fair value and related derivatives	85		28
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Loans [Member]
Components Of Gain On Instruments At Fair Value And Related Derivatives [Line Items]
Interest rate and other components	0	[1]	0	[1]
Credit risk component, assets	(10)	[2],[3]	0	[2],[3]
Total mark-to-market on financial instruments designated at fair value	(10)		0
Net realized loss on the financial instruments	0		0
Mark-to-market on the related derivatives	0		0
Net Realized Gain Losses On Related Long Term Debt Derivatives	0		0
Gain (loss) on instruments designated at fair value and related derivatives	(10)		0
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Long-term debt [Member]
Components Of Gain On Instruments At Fair Value And Related Derivatives [Line Items]
Interest rate and other components	(82)	[1]	(82)	[1]
Credit risk component, liabilities	70	[2],[3]	19	[2],[3]
Total mark-to-market on financial instruments designated at fair value	(12)		(63)
Net realized loss on the financial instruments	0		0
Mark-to-market on the related derivatives	70		70
Net Realized Gain Losses On Related Long Term Debt Derivatives	17		17
Gain (loss) on instruments designated at fair value and related derivatives	75		24
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Hybrid Instrument [Member]
Components Of Gain On Instruments At Fair Value And Related Derivatives [Line Items]
Interest rate and other components	(288)	[1]	(153)	[1]
Credit risk component, liabilities	29	[2],[3]	26	[2],[3]
Total mark-to-market on financial instruments designated at fair value	(259)		(127)
Net realized loss on the financial instruments	0		0
Mark-to-market on the related derivatives	279		131
Net Realized Gain Losses On Related Long Term Debt Derivatives	0		0
Gain (loss) on instruments designated at fair value and related derivatives	$ 20		$ 4

[1] As it relates to hybrid instruments, interest rate and other components includes interest rate, foreign exchange and equity contract risks.

[2] During the first quarter of 2015 and 2014, the gains in the credit risk component for long-term debt were attributable to the widening of our own credit spreads

[3] During the first quarter of 2015, the gain in the credit risk component for hybrid instruments is attributable primarily to the widening of our own credit spreads related to structured notes while the gain during the first quarter of 2014 was attributable primarily to the widening of our own credit spreads related to structured notes partially offset by the tightening of credit spreads on structured deposits.

XML

Fair Value Option - Additional Information (Details) (Loans Receivable [Member], USD $)	Mar. 31, 2015	Dec. 31, 2014
Loans Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Nonaccrual loans	$ 0	$ 0
Accruing loans contractually past due 90 days or more	$ 0	$ 0

XML

Fair Value Measurements - Assets and Liabilities Recorded as Fair Value on Nonrecurring Basis (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014		Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Total Gains (Losses)	$ (17)		$ (17)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0				0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	95				260
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	53				58
Residential Mortgage [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Total Gains (Losses)	0	[1]	3	[1]
Residential Mortgage [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	[1]			0	[1]
Residential Mortgage [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	1	[1]			0	[1]
Residential Mortgage [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	5	[1]			5	[1]
Impaired Consumer Loans [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Total Gains (Losses)	(10)	[2]	(15)	[2]
Impaired Consumer Loans [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	[2]			0	[2]
Impaired Consumer Loans [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	37	[2]			164	[2]
Impaired Consumer Loans [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	[2]			0	[2]
Commercial Loans Held for Sale [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Total Gains (Losses)	(8)	[3]	0	[3]
Commercial Loans Held for Sale [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	[3]			0	[3]
Commercial Loans Held for Sale [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	35	[3]			77	[3]
Commercial Loans Held for Sale [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	[3]			0	[3]
Impaired commercial loans [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Total Gains (Losses)	0	[4]	(6)	[4]
Impaired commercial loans [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	[4]			0	[4]
Impaired commercial loans [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	[4]			0	[4]
Impaired commercial loans [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	48	[4]			53	[4]
Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Total Gains (Losses)	1	[5]	1	[5]
Real Estate Owned [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	[5]			0	[5]
Real Estate Owned [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	22	[5]			19	[5]
Real Estate Owned [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	0	[5]			0	[5]
Estimate of fair value [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	148				318
Estimate of fair value [Member] | Residential Mortgage [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	6	[1]			5	[1]
Estimate of fair value [Member] | Impaired Consumer Loans [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	37	[2]			164	[2]
Estimate of fair value [Member] | Commercial Loans Held for Sale [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	35	[3]			77	[3]
Estimate of fair value [Member] | Impaired commercial loans [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	48	[4]			53	[4]
Estimate of fair value [Member] | Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 22	[5]			$ 19	[5]

[1] As of March 31, 2015 and December 31, 2014, the fair value of the loans held for sale was below cost. Certain residential mortgage loans held for sale have been classified as a Level 3 fair value measurement within the fair value hierarchy as the underlying real estate properties which determine fair value are illiquid assets as a result of market conditions and significant inputs in estimating fair value were unobservable. Additionally, the fair value of these properties is affected by, among other things, the location, the payment history and the completeness of the loan documentation.

[2] Represents residential mortgage loans held for investment whose carrying amount was reduced during the periods presented based on the fair value of the underlying collateral.

[3] As of March 31, 2015 and December 31, 2014, the fair value of the loans held for sale was below cost.

[4] Certain commercial loans have undergone troubled debt restructurings and are considered impaired. As a matter of practical expedient, we measure the credit impairment of a collateral-dependent loan based on the fair value of the collateral asset. The collateral often involves real estate properties that are illiquid due to market conditions. As a result, these loans are classified as a Level 3 fair value measurement within the fair value hierarchy.

[5] Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value unadjusted for transaction costs.

XML

Fair Value Measurements - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014		Dec. 31, 2014		Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of assets	$ 3,498		$ 3,690		$ 3,504		$ 3,150
Loss severity, trust preferred securities	1.8
Fair Value Liability, Transfers Out of Level 3	121		211
Fair Value Liability, Transfers Into Level 3	0		(68)
Average deviation of implied volatility, foreign currency pair	7.00%
Average deviation of implied volatility, at-the-money equity option	6.00%
Revaluation period	45 days
Weighted Average [Member] | Residential Mortgage [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair Value Inputs, Loss Severity	68.00%
Weighted Average [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair Value Inputs, Loss Severity	32.00%
Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of assets	463		694
Derivative Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of assets	208		392
Credit contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of assets	192	[1]	181	[1]	210	[1]	191	[1]
Government debt securities issued by foreign entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of assets			117				121
Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair Value Liability, Transfers Out of Level 3	101		140	[2]
Fair Value Liability, Transfers Into Level 3	0		(68)	[2]
Other liabilities [Member] | Standby Letters of Credit [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Deferred fees on standby letters of credit	$ 52				$ 50

[1] Level 3 net derivatives included derivative assets of $463 million and derivative liabilities of $208 million as of March 31, 2015 and derivative assets of $694 million and derivative liabilities of $392 million as of March 31, 2014.

[2] See Note 10, "Fair Value Option," for additional information.

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 01, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	HSBCUSA
Entity Registrant Name	HSBC USA INC /MD/
Entity Central Index Key	0000083246
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		714

XML

Litigation and Regulatory Matters - Additional Information (Details) (USD $)	1 Months Ended
	Mar. 31, 2015	Dec. 31, 2013 mortgage_loan	Apr. 30, 2015
Loss Contingencies [Line Items]
Estimate of loss	$ 60,000,000
Checking Account Overdraft Litigation [Member]
Loss Contingencies [Line Items]
Legal settlement amount	30,000,000
Residential Funding Litigation [Member]
Loss Contingencies [Line Items]
Mortgage Loans Purchased		8,800
Subsequent Event [Member] | Weller, et. al. v. HSBC Mortgage Services Inc., et. al. [Member]
Loss Contingencies [Line Items]
Legal settlement amount			$ 1,800,000

XML

Fair Value Option

3 Months Ended

Mar. 31, 2015

Fair Value Option [Abstract]

Fair Value Option

Fair Value Option

We report our results to HSBC in accordance with HSBC Group accounting and reporting policies ("Group Reporting Basis"), which apply International Financial Reporting Standards ("IFRS"). We typically have elected to apply fair value option ("FVO") accounting to selected financial instruments to align the measurement attributes of those instruments under U.S. GAAP and the Group Reporting Basis and to simplify the accounting model applied to those financial instruments. We elected to apply FVO reporting to certain commercial loans held for sale, certain fixed rate long-term debt issuances and hybrid instruments which include all structured notes and structured deposits. Changes in fair value for these assets and liabilities are reported as gain (loss) on instruments designated at fair value and related derivatives in the consolidated statement of income.

Loans  We elected to apply FVO accounting to certain commercial syndicated loans which are originated with the intent to sell and certain commercial loans that we purchased from the secondary market and hold as hedges against our exposure to certain total return swaps and include these loans as loans held for sale in the consolidated balance sheet. The election allows us to account for these loans at fair value which is consistent with the manner in which the instruments are managed. Interest from these loans is recorded as interest income in the consolidated statement of income. Because a substantial majority of the loans elected for the fair value option are floating rate assets, changes in their fair value are primarily attributable to changes in loan-specific credit risk factors. The components of gain (loss) related to loans designated at fair value are summarized in the table below. As of March 31, 2015 and December 31,2014, no loans for which the fair value option has been elected are 90 days or more past due or on nonaccrual status.

Long-Term Debt (Own Debt Issuances)  We elected to apply FVO accounting for certain fixed-rate long-term debt for which we had applied or otherwise would elect to apply fair value hedge accounting. The election allows us to achieve a similar accounting effect without having to meet the hedge accounting requirements. The own debt issuances elected under FVO are traded in secondary markets and, as such, the fair value is determined based on observed prices for the specific instruments. The observed market price of these instruments reflects the effect of changes to our own credit spreads and interest rates. Interest on the fixed-rate debt accounted for under FVO is recorded as interest expense in the consolidated statement of income. The components of gain (loss) related to long-term debt designated at fair value are summarized in the table below.

Hybrid Instruments  We elected to apply FVO accounting to all of our hybrid instruments issued, inclusive of structured notes and structured deposits. The valuation of the hybrid instruments is predominantly driven by the derivative features embedded within the instruments. Cash flows of the hybrid instruments are discounted at an appropriate rate for the applicable duration of the instrument adjusted for our own credit spreads. The credit spreads applied to structured notes are determined with reference to our own debt issuance rates observed in the primary and secondary markets, internal funding rates, and structured note rates in recent executions while the credit spreads applied to structured deposits are determined using market rates currently offered on comparable deposits with similar characteristics and maturities. Interest on this debt is recorded as interest expense in the consolidated statement of income. The components of gain (loss) related to hybrid instruments designated at fair value which reflect the instruments described above are summarized in the table below.

The following table summarizes the fair value and unpaid principal balance for items we account for under FVO:

	Fair Value		Unpaid Principal Balance
	(in millions)
At March 31, 2015
Commercial loans held for sale	$	255	$	270
Fixed rate long-term debt	2,191		1,750
Hybrid instruments:
Structured deposits	6,948		6,768
Structured notes	6,842		6,466
At December 31, 2014
Commercial loans held for sale	$	384	$	390
Fixed rate long-term debt	2,179		1,750
Hybrid instruments:
Structured deposits	7,346		7,176
Structured notes	6,612		6,275

Components of Gain (Loss) on Instruments at Fair Value and Related Derivatives  Gain (loss) on instruments designated at fair value and related derivatives includes the changes in fair value related to interest, credit and other risks as well as the mark-to-market adjustment on derivatives related to the financial instrument designated at fair value and net realized gains or losses on these derivatives. The following table summarizes the components of gain (loss) on instruments designated at fair value and related derivatives related to the changes in fair value of the financial instrument accounted for under FVO:

	Loans			Long-Term Debt			Hybrid Instruments			Total
	(in millions)
Three Months Ended March 31, 2015
Interest rate and other components(1)	$	—		$	(82	)	$	(288	)	$	(370	)
Credit risk component(2)(3)	(10		)	70			29			89
Total mark-to-market on financial instruments designated at fair value	(10		)	(12		)	(259		)	(281		)
Net realized loss on financial instruments	—			—			—			—
Mark-to-market on the related derivatives	—			70			279			349
Net realized gain on the related long-term debt derivatives	—			17			—			17
Gain (loss) on instruments designated at fair value and related derivatives	$	(10	)	$	75		$	20		$	85
Three Months Ended March 31, 2014
Interest rate and other components(1)	$	—		$	(82	)	$	(153	)	$	(235	)
Credit risk component(2)(3)	—			19			26			45
Total mark-to-market on financial instruments designated at fair value	—			(63		)	(127		)	(190		)
Net realized loss on financial instruments	—			—			—			—
Mark-to-market on the related derivatives	—			70			131			201
Net realized gain on the related long-term debt derivatives	—			17			—			17
Gain (loss) on instruments designated at fair value and related derivatives	$	—		$	24		$	4		$	28

⁽¹⁾  As it relates to hybrid instruments, interest rate and other components includes interest rate, foreign exchange and equity contract risks.

⁽²⁾  During the first quarter of 2015 and 2014, the gains in the credit risk component for long-term debt were attributable to the widening of our own credit spreads.

⁽³⁾  During the first quarter of 2015, the gain in the credit risk component for hybrid instruments is attributable primarily to the widening of our own credit spreads related to structured notes while the gain during the first quarter of 2014 was attributable primarily to the widening of our own credit spreads related to structured notes partially offset by the tightening of credit spreads on structured deposits.

XML

Intangible Assets - Residential MSRs Activity (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Fair value of MSRs:
Beginning balance	$ 159	$ 227
Changes in fair value due to:
Changes in fair value due to changes in valuation model inputs or assumptions	(11)	(12)
Reductions related to customer payments	(8)	(10)
Ending balance	$ 140	$ 205

XML

Derivative Financial Instruments - Notional Value of Derivative Contracts (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Total	$ 4,737,184	$ 4,829,655
Interest rate contracts [Member]
Derivative [Line Items]
Total	3,233,922	3,338,215
Interest rate contracts [Member] | Futures and forwards [Member]
Derivative [Line Items]
Total	143,809	87,406
Interest rate contracts [Member] | Swaps [Member]
Derivative [Line Items]
Total	2,913,021	3,096,382
Interest rate contracts [Member] | Options written [Member]
Derivative [Line Items]
Total	77,549	70,903
Interest rate contracts [Member] | Options purchased [Member]
Derivative [Line Items]
Total	99,543	83,524
Foreign exchange contracts [Member]
Derivative [Line Items]
Total	1,182,589	1,160,973
Foreign exchange contracts [Member] | Options written [Member]
Derivative [Line Items]
Total	105,858	117,088
Foreign exchange contracts [Member] | Options purchased [Member]
Derivative [Line Items]
Total	101,442	118,350
Foreign exchange contracts [Member] | Swaps, futures and forwards [Member]
Derivative [Line Items]
Total	912,060	866,835
Foreign exchange contracts [Member] | Spot [Member]
Derivative [Line Items]
Total	63,229	58,700
Commodity and Equity Contract [Member]
Derivative [Line Items]
Total	83,124	89,730
Commodity and Equity Contract [Member] | Options written [Member]
Derivative [Line Items]
Total	16,324	18,015
Commodity and Equity Contract [Member] | Options purchased [Member]
Derivative [Line Items]
Total	20,637	23,452
Commodity and Equity Contract [Member] | Swaps, futures and forwards [Member]
Derivative [Line Items]
Total	46,163	48,263
Credit contracts [Member]
Derivative [Line Items]
Total	$ 237,549	$ 240,737

XML

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 164	$ 104
Net change in unrealized gains (losses), net of tax:
Investment securities	(28)	130
Other-than-temporarily impaired debt securities held-to-maturity	0	1
Derivatives designated as cash flow hedges	(19)	(20)
Pension and post-retirement benefit plans	1	0
Total other comprehensive income (loss)	(46)	111
Comprehensive income	$ 118	$ 215

XML

Loans

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Loans

Loans

Loans consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Commercial loans:
Construction and other real estate	$	10,901	$	10,300
Business and corporate banking	19,251		17,819
Global banking(1)	28,029		26,387
Other commercial	3,466		3,581
Total commercial	61,647		58,087
Consumer loans:
Residential mortgages	16,991		16,661
Home equity mortgages	1,716		1,784
Credit cards	680		720
Other consumer	424		489
Total consumer	19,811		19,654
Total loans	$	81,458	$	77,741

⁽¹⁾  Represents large multinational firms including globally focused U.S. corporate and financial institutions and U.S. dollar lending to multinational banking customers managed by HSBC on a global basis. Also includes loans to HSBC affiliates which totaled $5,016 million and $4,821 million at March 31, 2015 and December 31, 2014, respectively. See Note 13, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.

Net deferred origination fees totaled $45 million and $34 million at March 31, 2015 and December 31, 2014, respectively. At March 31, 2015 and December 31, 2014, we had a net unamortized premium on our loans of $12 million and $10 million, respectively.

Age Analysis of Past Due Loans  The following table summarizes the past due status of our loans at March 31, 2015 and December 31, 2014. The aging of past due amounts is determined based on the contractual delinquency status of payments under the loan. An account is generally considered to be contractually delinquent when payments have not been made in accordance with the loan terms. Delinquency status is affected by customer account management policies and practices such as re-age, which results in the re-setting of the contractual delinquency status to current.

	Past Due				Total Past Due 30 Days or More
At March 31, 2015	30 - 89 days		90+ days				Current(1)		Total Loans
	(in millions)
Commercial loans:
Construction and other real estate	$	40	$	30	$	70	$	10,831	$	10,901
Business and corporate banking	13		4		17		19,234		19,251
Global banking	—		—		—		28,029		28,029
Other commercial	6		6		12		3,454		3,466
Total commercial	59		40		99		61,548		61,647
Consumer loans:
Residential mortgages	355		879		1,234		15,757		16,991
Home equity mortgages	19		54		73		1,643		1,716
Credit cards	10		10		20		660		680
Other consumer	8		8		16		408		424
Total consumer	392		951		1,343		18,468		19,811
Total loans	$	451	$	991	$	1,442	$	80,016	$	81,458

	Past Due				Total Past Due 30 Days or More
At December 31, 2014	30 - 89 days		90+ days				Current(1)		Total Loans
	(in millions)
Commercial loans:
Construction and other real estate	$	25	$	22	$	47	$	10,253	$	10,300
Business and corporate banking	32		9		41		17,778		17,819
Global banking	—		—		—		26,387		26,387
Other commercial	15		6		21		3,560		3,581
Total commercial	72		37		109		57,978		58,087
Consumer loans:
Residential mortgages	390		931		1,321		15,340		16,661
Home equity mortgages	21		56		77		1,707		1,784
Credit cards	11		10		21		699		720
Other consumer	9		9		18		471		489
Total consumer	431		1,006		1,437		18,217		19,654
Total loans	$	503	$	1,043	$	1,546	$	76,195	$	77,741

⁽¹⁾ Loans less than 30 days past due are presented as current.

Nonaccrual Loans  Nonaccrual loans totaled $1,062 million and $1,101 million at March 31, 2015 and December 31, 2014, respectively. For an analysis of reserves for credit losses, see Note 5, "Allowance for Credit Losses." Nonaccrual loans and accruing receivables 90 days or more delinquent consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Nonaccrual loans:
Commercial:
Construction and other real estate	$	74	$	65
Business and corporate banking	78		74
Commercial nonaccrual loans held for sale	36		43
Total commercial	188		182
Consumer:
Residential mortgages(1)(2)(3)	803		847
Home equity mortgages(1)(2)	67		68
Consumer nonaccrual loans held for sale	4		4
Total consumer loans	874		919
Total nonaccruing loans	1,062		1,101
Accruing loans contractually past due 90 days or more:
Commercial:
Business and corporate banking	1		1
Total commercial	1		1
Consumer:
Credit card receivables	10		10
Other consumer	9		10
Total consumer loans	19		20
Total accruing loans contractually past due 90 days or more	20		21
Total nonperforming loans	$	1,082	$	1,122

⁽¹⁾  At March 31, 2015 and December 31, 2014, nonaccrual consumer mortgage loans include $760 million and $817 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

⁽²⁾  Nonaccrual consumer mortgage loans include all receivables which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent.

⁽³⁾  Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association ("GNMA"). Repayment of these loans are predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.

The following table provides additional information on our nonaccrual loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Interest income that would have been recorded if the nonaccrual loans had been current in accordance with contractual terms during the period	$	21	$	28
Interest income that was recorded on nonaccrual loans and included in interest income during the period	6		8

Impaired Loans  A loan is considered to be impaired when it is deemed probable that not all principal and interest amounts due according to the contractual terms of the loan agreement will be collected. Probable losses from impaired loans are quantified and recorded as a component of the overall allowance for credit losses. Commercial and consumer loans for which we have modified the loan terms as part of a troubled debt restructuring are considered to be impaired loans. Additionally, commercial loans in nonaccrual status, or that have been partially charged-off or assigned a specific allowance for credit losses are also considered impaired loans.

Troubled debt restructurings  TDR Loans represent loans for which the original contractual terms have been modified to provide for terms that are less than what we would be willing to accept for new loans with comparable risk because of deterioration in the borrower’s financial condition.

Modifications for consumer or commercial loans may include changes to one or more terms of the loan, including, but not limited to, a change in interest rate, extension of the amortization period, reduction in payment amount and partial forgiveness or deferment of principal or accrued interest . A substantial amount of our modifications involve interest rate reductions which lower the amount of interest income we are contractually entitled to receive in future periods. Through lowering the interest rate and other loan term changes, we believe we are able to increase the amount of cash flow that will ultimately be collected from the loan, given the borrower’s financial condition. TDR Loans are reserved for either based on the present value of expected future cash flows discounted at the loans’ original effective interest rates which generally results in a higher reserve requirement for these loans or in the case of certain secured loans, the estimated fair value of the underlying collateral. Once a consumer loan is classified as a TDR Loan, it continues to be reported as such until it is paid off or charged-off. For commercial loans, if subsequent performance is in accordance with the new terms and such terms reflect current market rates at the time of restructure, they will no longer be reported as a TDR Loan beginning in the year after restructuring. During the three months ended March 31, 2015 and 2014 there were no commercial loans that met this criteria and were removed from TDR Loan classification.

The following table presents information about loans which were modified during the three months ended March 31, 2015 and 2014 and as a result of this action became classified as TDR Loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Commercial loans:
Business and corporate banking	26		10
Global banking	13		—
Total commercial	39		10
Consumer loans:
Residential mortgages	35		33
Home equity mortgages	—		1
Credit cards	1		2
Total consumer	36		36
Total	$	75	$	46

The weighted-average contractual rate reduction for consumer loans which became classified as TDR Loans during the three months ended March 31, 2015 and 2014 was 1.77 percent and 1.50 percent, respectively. The weighted-average contractual rate reduction for commercial loans was not significant in either the number of loans or rate.

The following tables present information about our TDR Loans and the related credit loss reserves for TDR Loans:

	March 31, 2015		December 31, 2014
	(in millions)
TDR Loans(1)(2):
Commercial loans:
Construction and other real estate	$	179	$	186
Business and corporate banking	44		24
Global banking	13		—
Total commercial	236		210
Consumer loans:
Residential mortgages(3)	980		972
Home equity mortgages(3)	20		20
Credit cards	6		6
Total consumer	1,006		998
Total TDR Loans(4)	$	1,242	$	1,208
Allowance for credit losses for TDR Loans(5):
Commercial loans:
Construction and other real estate	$	2	$	4
Business and corporate banking	4		5
Total commercial	6		9
Consumer loans:
Residential mortgages	42		43
Home equity mortgages	1		2
Credit cards	2		2
Total consumer	45		47
Total allowance for credit losses for TDR Loans	$	51	$	56

⁽¹⁾  TDR Loans are considered to be impaired loans. For consumer loans, all such loans are considered impaired loans regardless of accrual status. For commercial loans, impaired loans include other loans in addition to TDR Loans which totaled $79 million and $85 million at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  The TDR Loan balances included in the table above reflect the current carrying amount of TDR Loans and includes all basis adjustments on the loan, such as unearned income, unamortized deferred fees and costs on originated loans, partial charge-offs and premiums or discounts on purchased loans. The following table reflects the unpaid principal balance of TDR Loans:

	March 31, 2015		December 31, 2014
	(in millions)
Commercial loans:
Construction and other real estate	$	197	$	201
Business and corporate banking	50		51
Global banking	13		—
Total commercial	260		252
Consumer loans:
Residential mortgages	1,147		1,139
Home equity mortgages	44		44
Credit cards	6		6
Total consumer	1,197		1,189
Total	$	1,457	$	1,441

⁽³⁾  Includes $778 million and $763 million at March 31, 2015 and December 31, 2014, respectively, of loans that are recorded at the lower of amortized cost or fair value of the collateral less cost to sell.

⁽⁴⁾  Includes $451 million and $485 million at March 31, 2015 and December 31, 2014, respectively, of loans which are classified as nonaccrual.

⁽⁵⁾  Included in the allowance for credit losses.

The following table presents information about average TDR Loans and interest income recognized on TDR Loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Average balance of TDR Loans:
Commercial loans:
Construction and other real estate	$	182	$	264
Business and corporate banking	34		19
Global banking	7		25
Other commercial	—		18
Total commercial	223		326
Consumer loans:
Residential mortgages	976		922
Home equity mortgages	20		19
Credit cards	6		8
Total consumer	1,002		949
Total average balance of TDR Loans	$	1,225	$	1,275
Interest income recognized on TDR Loans:
Commercial loans:
Construction and other real estate	$	1	$	6
Business and corporate banking	1		—
Total commercial	2		6
Consumer loans:
Residential mortgages	9		9
Total consumer	9		9
Total interest income recognized on TDR Loans	$	11	$	15

The following table presents loans which were classified as TDR Loans during the previous 12 months which for commercial loans became 90 days or greater contractually delinquent or for consumer loans became 60 days or greater contractually delinquent during the three months ended March 31, 2015 and 2014:

Three Months Ended March 31,	2015		2014
	(in millions)
Commercial loans:
Construction and other real estate	$	2	$	12
Business and corporate banking	1		—
Total commercial	3		12
Consumer loans:
Residential mortgages	9		8
Total consumer	9		8
Total	$	12	$	20

Impaired commercial loans  The following table summarizes impaired commercial loan statistics:

	Amount with Impairment Reserves		Amount without Impairment Reserves		Total Impaired Commercial Loans(1)(2)		Impairment Reserve
	(in millions)
At March 31, 2015
Construction and other real estate	$	14	$	185	$	199	$	3
Business and corporate banking	68		28		96		23
Global banking	—		13		13		—
Other commercial	1		6		7		1
Total commercial	$	83	$	232	$	315	$	27
At December 31, 2014
Construction and other real estate	$	18	$	179	$	197	$	5
Business and corporate banking	72		18		90		24
Global banking	—		—		—		—
Other commercial	2		6		8		1
Total commercial	$	92	$	203	$	295	$	30

⁽¹⁾  Includes impaired commercial loans that are also considered TDR Loans which totaled $236 million and $210 million at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  The impaired commercial loan balances included in the table above reflect the current carrying amount of the loan and includes all basis adjustments, such as partial charge-offs, unamortized deferred fees and costs on originated loans and any premiums or discounts. The following table reflects the unpaid principal balance of impaired commercial loans included in the table above:

	March 31, 2015		December 31, 2014
	(in millions)
Construction and other real estate	$	223	$	224
Business and corporate banking	101		122
Global banking	13		—
Other commercial	7		8
Total commercial	$	344	$	354

The following table presents information about average impaired commercial loan balances and interest income recognized on the impaired commercial loans:

Three Months Ended March 31,	2015		2014
	(in millions)
Average balance of impaired commercial loans:
Construction and other real estate	$	198	$	297
Business and corporate banking	93		35
Global banking	7		33
Other commercial	8		32
Total average balance of impaired commercial loans	$	306	$	397
Interest income recognized on impaired commercial loans:
Construction and other real estate	$	1	$	6
Business and corporate banking	1		—
Total interest income recognized on impaired commercial loans	$	2	$	6

Commercial Loan Credit Quality Indicators  The following credit quality indicators are monitored for our commercial loan portfolio:

Criticized loans  Criticized loan classifications are based on the risk rating standards of our regulator. Problem loans are assigned various criticized facility grades. We also assign obligor grades which are used under our allowance for credit losses methodology. The following facility grades are deemed to be criticized:

• Special Mention – generally includes loans that are protected by collateral and/or the credit worthiness of the customer, but are potentially weak based upon economic or market circumstances which, if not checked or corrected, could weaken our credit position at some future date.

• Substandard – includes loans that are inadequately protected by the underlying collateral and/or general credit worthiness of the customer. These loans present a distinct possibility that we will sustain some loss if the deficiencies are not corrected.

• Doubtful – includes loans that have all the weaknesses exhibited by substandard loans, with the added characteristic that the weaknesses make collection or liquidation in full of the recorded loan highly improbable. However, although the possibility of loss is extremely high, certain factors exist which may strengthen the credit at some future date, and therefore the decision to charge off the loan is deferred. Loans graded as doubtful are required to be placed in nonaccruing status.

The following table summarizes criticized commercial loans:

	Special Mention		Substandard		Doubtful		Total
	(in millions)
At March 31, 2015
Construction and other real estate	$	254	$	219	$	1	$	474
Business and corporate banking	1,286		358		24		1,668
Global banking	2,009		197		—		2,206
Other commercial	—		6		1		7
Total commercial	$	3,549	$	780	$	26	$	4,355
At December 31, 2014
Construction and other real estate	$	310	$	230	$	7	$	547
Business and corporate banking	1,001		238		22		1,261
Global banking	1,770		202		—		1,972
Other commercial	1		6		—		7
Total commercial	$	3,082	$	676	$	29	$	3,787

Nonperforming  The following table summarizes the status of our commercial loan portfolio, excluding loans held for sale:

	Performing Loans		Nonaccrual Loans		Accruing Loans Contractually Past Due 90 days or More		Total
	(in millions)
At March 31, 2015
Construction and other real estate	$	10,827	$	74	$	—	$	10,901
Business and corporate banking	19,172		78		1		19,251
Global banking	28,029		—		—		28,029
Other commercial	3,466		—		—		3,466
Total commercial	$	61,494	$	152	$	1	$	61,647
At December 31, 2014
Construction and other real estate	$	10,235	$	65	$	—	$	10,300
Business and corporate banking	17,744		74		1		17,819
Global banking	26,387		—		—		26,387
Other commercial	3,581		—		—		3,581
Total commercial	$	57,947	$	139	$	1	$	58,087

Credit risk profile  The following table shows the credit risk profile of our commercial loan portfolio:

	Investment Grade(1)		Non-Investment Grade		Total
	(in millions)
At March 31, 2015
Construction and other real estate	$	8,314	$	2,587	$	10,901
Business and corporate banking	9,707		9,544		19,251
Global banking	23,146		4,883		28,029
Other commercial	1,831		1,635		3,466
Total commercial	$	42,998	$	18,649	$	61,647
At December 31, 2014
Construction and other real estate	$	7,820	$	2,480	$	10,300
Business and corporate banking	8,835		8,984		17,819
Global banking	23,400		2,987		26,387
Other commercial	1,873		1,708		3,581
Total commercial	$	41,928	$	16,159	$	58,087

⁽¹⁾  Investment grade includes commercial loans with credit ratings of at least BBB- or above or the equivalent based on our internal credit rating system.

Consumer Loan Credit Quality Indicators   The following credit quality indicators are utilized for our consumer loan portfolio:

Delinquency  The following table summarizes dollars of two-months-and-over contractual delinquency and as a percent of total loans and loans held for sale ("delinquency ratio") for our consumer loan portfolio:

	March 31, 2015				December 31, 2014
	Delinquent Loans		Delinquency Ratio		Delinquent Loans		Delinquency Ratio
	(dollars are in millions)
Residential mortgages(1)(2)	$	957	5.62	%	$	1,013	6.07	%
Home equity mortgages(1)(2)	60		3.50		62		3.48
Credit cards	14		2.06		14		1.94
Other consumer	13		2.53		14		2.52
Total consumer	$	1,044	5.24	%	$	1,103	5.59	%

⁽¹⁾  At March 31, 2015 and December 31, 2014, consumer mortgage loan delinquency includes $908 million and $936 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

⁽²⁾  At March 31, 2015 and December 31, 2014, consumer mortgage loans include $609 million and $608 million, respectively, of loans that were in the process of foreclosure.

Nonperforming   The following table summarizes the status of our consumer loan portfolio, excluding loans held for sale:

	Performing Loans		Nonaccrual Loans		Accruing Loans Contractually Past Due 90 days or More		Total
	(in millions)
At March 31, 2015
Residential mortgages	$	16,188	$	803	$	—	$	16,991
Home equity mortgages	1,649		67		—		1,716
Credit cards	670		—		10		680
Other consumer	415		—		9		424
Total consumer	$	18,922	$	870	$	19	$	19,811
At December 31, 2014
Residential mortgages	$	15,814	$	847	$	—	$	16,661
Home equity mortgages	1,716		68		—		1,784
Credit cards	710		—		10		720
Other consumer	479		—		10		489
Total consumer	$	18,719	$	915	$	20	$	19,654

Troubled debt restructurings  See discussion of impaired loans above for further details on this credit quality indicator.

Concentration of Credit Risk  At March 31, 2015 and December 31, 2014, our loan portfolio included interest-only residential mortgage loans totaling $3,561 million and $3,531 million, respectively. An interest-only residential mortgage loan allows a customer to pay the interest-only portion of the monthly payment for a period of time which results in lower payments during the initial loan period. However, subsequent events affecting a customer's financial position could affect the ability of customers to repay the loan in the future when the principal payments are required which increases the credit risk of this loan type.

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Securities

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

Our securities available-for-sale and securities held-to-maturity portfolios consisted of the following:

March 31, 2015	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in millions)
Securities available-for-sale:
U.S. Treasury	$	10,720	$	235	$	(56	)	$	10,899
U.S. Government sponsored enterprises:(1)
Mortgage-backed securities	670		8		(1		)	677
Collateralized mortgage obligations	35		—		—			35
Direct agency obligations	4,143		206		(6		)	4,343
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	11,457		93		(26		)	11,524
Collateralized mortgage obligations	378		7		(1		)	384
Obligations of U.S. states and political subdivisions	742		10		(4		)	748
Asset backed securities collateralized by:
Commercial mortgages	29		—		—			29
Home equity	94		—		(9		)	85
Other	112		—		(18		)	94
Foreign debt securities(2)	4,121		9		(17		)	4,113
Equity securities	162		3		—			165
Total available-for-sale securities	$	32,663	$	571	$	(138	)	$	33,096
Securities held-to-maturity:
U.S. Government sponsored enterprises:(3)
Mortgage-backed securities	$	5,280	$	177	$	(1	)	$	5,456
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	3,482		59		—			3,541
Collateralized mortgage obligations	5,222		100		(2		)	5,320
Obligations of U.S. states and political subdivisions	21		1		—			22
Asset-backed securities collateralized by residential mortgages	10		1		—			11
Total held-to-maturity securities	$	14,015	$	338	$	(3	)	$	14,350

December 31, 2014	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in millions)
Securities available-for-sale:
U.S. Treasury	$	11,793	$	276	$	(58	)	$	12,011
U.S. Government sponsored enterprises:(1)
Mortgage-backed securities	520		5		(1		)	524
Collateralized mortgage obligations	35		—		—			35
Direct agency obligations	3,995		217		(6		)	4,206
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	7,985		101		(27		)	8,059
Collateralized mortgage obligations	329		3		(2		)	330
Obligations of U.S. states and political subdivisions	661		10		(4		)	667
Asset backed securities collateralized by:
Commercial mortgages	43		—		—			43
Home equity	97		—		(8		)	89
Other	110		—		(16		)	94
Foreign debt securities(2)	3,921		6		(12		)	3,915
Equity securities	165		3		(1		)	167
Total available-for-sale securities	$	29,654	$	621	$	(135	)	$	30,140
Securities held-to-maturity:
U.S. Government sponsored enterprises:(3)
Mortgage-backed securities	$	4,868	$	120	$	(1	)	$	4,987
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	3,700		53		(1		)	3,752
Collateralized mortgage obligations	4,867		54		(1		)	4,920
Obligations of U.S. states and political subdivisions	23		1		—			24
Asset-backed securities collateralized by residential mortgages	11		1		—			12
Total held-to-maturity securities	$	13,469	$	229	$	(3	)	$	13,695

⁽¹⁾  Includes securities at amortized cost of $672 million and $521 million issued or guaranteed by FNMA at March 31, 2015 and December 31, 2014, respectively, and $33 million and $34 million issued or guaranteed by the Federal Home Loan Mortgage Corporation ("FHLMC") at March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  At March 31, 2015 and December 31, 2014, foreign debt securities consisted of $1,053 million and $689 million, respectively, of securities fully backed by foreign governments. The remainder of foreign debt securities represents public sector entity, bank or corporate debt.

⁽³⁾  Includes securities at amortized cost of $3,539 million and $3,185 million issued or guaranteed by FNMA at March 31, 2015 and December 31, 2014, respectively, and $1,741 million and $1,683 million issued and guaranteed by FHLMC at March 31, 2015 and December 31, 2014, respectively.

The following table summarizes gross unrealized losses and related fair values as of March 31, 2015 and December 31, 2014 classified as to the length of time the losses have existed:

	One Year or Less						Greater Than One Year
March 31, 2015	Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment		Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment
	(dollars are in millions)
Securities available-for-sale:
U.S. Treasury	25	$	(46	)	$	4,178	5	$	(10	)	$	750
U.S. Government sponsored enterprises	9	(4		)	352		17	(3		)	160
U.S. Government agency issued or guaranteed	5	(20		)	889		8	(7		)	131
Obligations of U.S. states and political subdivisions	38	(3		)	220		21	(1		)	168
Asset backed securities	1	—			—		9	(27		)	196
Foreign debt securities	8	(16		)	3,055		1	(1		)	200
Equity securities	1	—			159		—	—			—
Securities available-for-sale	87	$	(89	)	$	8,853	61	$	(49	)	$	1,605
Securities held-to-maturity:
U.S. Government sponsored enterprises	15	$	(1	)	$	172	50	$	—		$	—
U.S. Government agency issued or guaranteed	101	(2		)	310		768	—			1
Obligations of U.S. states and political subdivisions	1	—			—		3	—			1
Securities held-to-maturity	117	$	(3	)	$	482	821	$	—		$	2

	One Year or Less						Greater Than One Year
December 31, 2014	Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment		Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment
	(dollars are in millions)
Securities available-for-sale:
U.S. Treasury	6	$	(47	)	$	3,459	4	$	(11	)	$	1,546
U.S. Government sponsored enterprises	2	(1		)	128		24	(6		)	391
U.S. Government agency issued or guaranteed	30	(20		)	2,046		10	(9		)	213
Obligations of U.S. states and political subdivisions	34	(2		)	146		23	(2		)	194
Asset backed securities	1	—			3		9	(24		)	199
Foreign debt securities	5	(9		)	1,805		3	(3		)	898
Equity securities	1	(1		)	158		—	—			—
Securities available-for-sale	79	$	(80	)	$	7,745	73	$	(55	)	$	3,441
Securities held-to-maturity:
U.S. Government sponsored enterprises	144	$	(1	)	$	394	47	$	—		$	—
U.S. Government agency issued or guaranteed	103	(2		)	985		800	—			2
Obligations of U.S. states and political subdivisions	—	—			—		3	—			1
Securities held-to-maturity	247	$	(3	)	$	1,379	850	$	—		$	3

Net unrealized gains decreased within the available-for-sale portfolio in the first quarter of 2015 due primarily to sales of U.S. Treasury securities that were in a net unrealized gain position at December 31, 2014, partially offset by a decrease in yields.

Although the fair value of a particular security is below its amortized cost, it does not necessarily result in a credit loss and hence an other-than-temporary impairment. The decline in fair value may be caused by, among other things, the illiquidity of the market. We have reviewed the securities for which there is an unrealized loss for other-than-temporary impairment in accordance with our accounting policies, discussed further below. At March 31, 2015 and December 31, 2014, we do not consider any of our debt securities to be other-than-temporarily impaired as we expect to recover their amortized cost basis and we neither intend nor expect to be required to sell these securities prior to recovery, even if that equates to holding securities until their individual maturities. However, other-than-temporary impairments may occur in future periods if the credit quality of the securities deteriorates.

Other-Than-Temporary Impairment  On a quarterly basis, we perform an assessment to determine whether there have been any events or economic circumstances to indicate that a security with an unrealized loss has suffered other-than-temporary impairment. A debt security is considered impaired if its fair value is less than its amortized cost at the reporting date. If impaired, we assess whether the impairment is other-than-temporary.

If we intend to sell the debt security or if it is more-likely-than-not that we will be required to sell the debt security before the recovery of its amortized cost basis, the impairment is considered other-than-temporary and the unrealized loss is recorded in earnings. An impairment is also considered other-than-temporary if a credit loss exists (i.e., the present value of the expected future cash flows is less than the amortized cost basis of the debt security). In the event a credit loss exists, the credit loss component of an other-than-temporary impairment is recorded in earnings while the remaining portion of the impairment loss attributable to factors other than credit loss is recognized, net of tax, in other comprehensive income (loss).

For all securities held in the available-for-sale or held-to-maturity portfolios for which unrealized losses attributed to factors other than credit existed, we do not have the intention to sell and believe will not be required to sell the securities for contractual, regulatory or liquidity reasons as of the reporting date. For a complete description of the factors considered when analyzing debt securities for impairments, see Note 5, "Securities," in our 2014 Form 10-K. There have been no material changes in our process for assessing impairment during 2015.

During the three months ended March 31, 2015, none of our debt securities were determined to have either initial other-than-temporary impairment or changes to previous other-than-temporary impairment estimates relating to the credit component, as such, there were no other-than-temporary impairment losses recognized related to credit loss.

During the three months ended March 31, 2014, none of our debt securities were determined to have initial other-than-temporary impairment while one held-to-maturity asset-backed debt security, which was previously determined to be other-than-temporarily impaired, had a change to its other-than-temporary impairment estimate related to the credit component. The additional credit loss associated with the impaired debt security, which reflects the excess of amortized cost over the present value of expected future cash flows, was $2 million and was recorded as a component of net other-than-temporary impairment losses in the accompanying consolidated statement of income.

The following table summarizes the rollforward of credit losses which have been recognized in income on other-than-temporary impaired securities that we do not intend to sell nor will likely be required to sell:

Three Months Ended March 31,	2015		2014
	(in millions)
Beginning balance of credit losses on held-to-maturity debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss)	$	—	$	61
Increase in credit losses for which an other-than-temporary impairment was previously recognized	—		2
Ending balance of credit losses on held-to-maturity debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss)	$	—	$	63

At March 31, 2015, we held 15 individual asset-backed securities in the available-for-sale portfolio, of which 5 were also wrapped by a monoline insurance company. The asset-backed securities backed by a monoline wrap comprised $180 million of the total aggregate fair value of asset-backed securities of $208 million at March 31, 2015. The gross unrealized losses on these monoline wrapped securities were $27 million at March 31, 2015. We did not take into consideration the value of the monoline wrap of any non-investment grade monoline insurers as of March 31, 2015 and, therefore, we only considered the financial guarantee of monoline insurers on securities for purposes of evaluating other-than-temporary impairment on securities with a fair value of $85 million.

At December 31, 2014, we held 15 individual asset-backed securities in the available-for-sale portfolio, of which 5 were also wrapped by a monoline insurance company. The asset-backed securities backed by a monoline wrap comprised $183 million of the total aggregate fair value of asset-backed securities of $226 million at December 31, 2014. The gross unrealized losses on these monoline wrapped securities were $23 million at December 31, 2014. We did not take into consideration the value of the monoline wrap of any non-investment grade monoline insurers as of December 31, 2014 and, therefore, we only considered the financial guarantee of monoline insurers on securities with a fair value of $89 million for purposes of evaluating other-than-temporary impairment.

As discussed above, certain asset-backed securities in the available-for-sale portfolio have an embedded financial guarantee provided by monoline insurers. Because the financial guarantee is not a separate and distinct contract from the asset-backed security, they are considered as a single unit of account for fair value measurement and impairment assessment purposes. The monoline insurers are regulated by the insurance commissioners of the relevant states and certain monoline insurers that write the financial guarantee contracts are public companies. In evaluating the extent of our reliance on investment grade monoline insurance companies, consideration is given to our assessment of the creditworthiness of the monoline and other market factors. We perform both a credit as well as a liquidity analysis on the monoline insurers each quarter. Our analysis also compares market-based credit default spreads, when available, to assess the appropriateness of our monoline insurer’s creditworthiness. Based on the public information available, including the regulatory reviews and actions undertaken by the state insurance commissions and the published financial results, we determine the degree of reliance to be placed on the financial guarantee policy in estimating the cash flows to be collected for the purpose of recognizing and measuring impairment loss.

A credit downgrade to non-investment grade is key but not the only factor in determining the credit risk or the monoline insurer’s ability to fulfill its contractual obligation under the financial guarantee arrangement. Although a monoline may have been down-graded by the credit rating agencies or have been ordered to commute its operations by the insurance commissioners, it may retain the ability and the obligation to continue to pay claims in the near term. We evaluate the short-term liquidity of and the ability to pay claims by the monoline insurers in estimating the amounts of cash flows expected to be collected from specific asset-backed securities for the purpose of assessing and measuring credit loss.

Realized Gains (Losses) The following table summarizes realized gains and losses on investment securities transactions attributable to available-for-sale securities:

Three Months Ended March 31,	2015			2014
	(in millions)
Gross realized gains	$	30		$	43
Gross realized losses	(7		)	(21		)
Net realized gains	$	23		$	22

Contractual Maturities and Yields The following table summarizes the amortized cost and fair values of securities available-for-sale and securities held-to-maturity at March 31, 2015 by contractual maturity. Expected maturities differ from contractual maturities because borrowers have the right to prepay obligations without prepayment penalties in certain cases. Securities available-for-sale amounts exclude equity securities as they do not have stated maturities. The table below also reflects the distribution of maturities of debt securities held at March 31, 2015, together with the approximate taxable equivalent yield of the portfolio. The yields shown are calculated by dividing annualized interest income, including the accretion of discounts and the amortization of premiums, by the amortized cost of securities outstanding at March 31, 2015. Yields on tax-exempt obligations have been computed on a taxable equivalent basis using applicable statutory tax rates.

	Within One Year				After One But Within Five Years				After Five But Within Ten Years				After Ten Years
Taxable Equivalent Basis	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
	(dollars are in millions)
Available-for-sale:
U.S. Treasury	$	—	—	%	$	4,124	.70	%	$	3,227	2.24	%	$	3,369	2.81	%
U.S. Government sponsored enterprises	—		—		2,057		3.08		1,723		2.77		1,068		3.27
U.S. Government agency issued or guaranteed	—		—		9		4.22		42		3.89		11,784		2.84
Obligations of U.S. states and political subdivisions	—		—		96		4.12		296		2.96		350		3.41
Asset backed securities	—		—		—		—		—		—		235		3.20
Foreign debt securities	567		3.16		3,554		1.42		—		—		—		—
Total amortized cost	$	567	3.16	%	$	9,840	1.50	%	$	5,288	2.46	%	$	16,806	2.88	%
Total fair value	$	574			$	9,954			$	5,479			$	16,924
Held-to-maturity:
U.S. Government sponsored enterprises	$	—	—	%	$	92	1.40	%	$	615	2.52	%	$	4,573	3.01	%
U.S. Government agency issued or guaranteed	—		—		1		7.66		47		2.80		8,656		2.44
Obligations of U.S. states and political subdivisions	3		5.09		8		3.93		6		3.83		4		5.34
Asset backed securities	—		—		—		—		—		—		10		6.40
Total amortized cost	$	3	5.09	%	$	101	1.65	%	$	668	2.55	%	$	13,243	2.64	%
Total fair value	$	3			$	103			$	685			$	13,559

Investments in Federal Home Loan Bank stock and Federal Reserve Bank stock of $315 million and $485 million, respectively, were included in other assets at March 31, 2015. Investments in Federal Home Loan Bank stock and Federal Reserve Bank stock of $108 million and $483 million, respectively, were included in other assets at December 31, 2014.

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Retained Earnings and Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2015

Banking and Thrift [Abstract]

Retained Earnings and Regulatory Capital Requirements

Retained Earnings and Regulatory Capital Requirements

Bank dividends are a major source of funds used for payment by us of shareholder dividends and, along with interest earned on investments, cover our operating expenses which consist primarily of interest on outstanding debt. Any significant dividend from HSBC Bank USA would require the approval of the Office of the Comptroller of the Currency. Approval is also required if the total of all dividends HSBC Bank USA declares in any year exceeds the cumulative net profits for that year, combined with the profits for the two preceding years reduced by dividends attributable to those years. Under a separate restriction, payment of dividends is prohibited in amounts greater than undivided profits then on hand, after deducting actual losses and bad debts. Bad debts are debts due and unpaid for a period of six months unless well secured, as defined, and in the process of collection.

The following table summarizes the capital amounts and ratios of HSBC USA and HSBC Bank USA, calculated in accordance with banking regulations in effect as of March 31, 2015 and December 31, 2014:

	March 31, 2015							December 31, 2014
	Capital Amount		Well-Capitalized  Ratio(1)			Actual Ratio		Capital Amount		Well-Capitalized Ratio(1)			Actual Ratio
	(dollars are in millions)
Total capital ratio:(3)
HSBC USA	$	24,732	10.00	%		16.34	%	$	21,017	10.00	%		15.78	%
HSBC Bank USA	26,916		10.00			18.55		22,760		10.00			17.86
Tier 1 capital ratio:(3)
HSBC USA	19,089		6.00			12.61		15,205		6.00			11.41
HSBC Bank USA	22,246		8.00			15.33		17,215		8.00			13.51
Common equity Tier 1 ratio:(3)
HSBC USA	17,830		4.50		(2)	11.78		13,754		4.50		(2)	10.33
HSBC Bank USA	19,863		6.50			13.69		17,215		6.50			13.51
Tier 1 leverage ratio:
HSBC USA	19,089		4.00		(2)	9.91		15,205		4.00		(2)	8.54
HSBC Bank USA	22,246		5.00			12.02		17,215		5.00			10.06
Risk weighted assets:(3)
HSBC USA	151,347							133,211
HSBC Bank USA	145,121							127,456

⁽¹⁾  HSBC USA and HSBC Bank USA are categorized as "well-capitalized," as defined by their principal regulators. To be categorized as well-capitalized under regulatory guidelines, a banking institution must have the ratios reflected in the above table, and must not be subject to a directive, order, or written agreement to meet and maintain specific capital levels. The regulatory ratios for an institution to be well-capitalized under Basel III became effective beginning January 1, 2015 and the new ratios are shown for both periods.

⁽²⁾  There are no common equity Tier 1 or Tier 1 leverage ratio components in the definition of a well-capitalized bank holding company. The ratios shown in both periods are the required regulatory minimum ratios beginning in 2015.

⁽³⁾  At March 31, 2015, risk weighted assets are calculated under the Basel III Standardized Approach, which replaced the Basel I risk-based guidance for determining risk weighted assets beginning January 1, 2015.

In 2013, U.S. banking regulators issued a final rule implementing the Basel III capital framework in the U.S. which, for banking organizations such as HSBC North America and HSBC Bank USA, took effect January 1, 2014 with certain provisions being phased in over time through the beginning of 2019. As a result, the capital ratios in the table above are reported in accordance with the Basel III transition rules within the final rule. In addition, the Basel III final rule introduced the Standardized Approach for risk weighted assets, which replaced the Basel I risk-based guidance for determining risk weighted assets beginning January 1, 2015.

During the first quarter of 2015, HSBC USA repaid $4,000 million of senior long-term debt previously issued to HSBC North America and HSBC Bank USA repaid $900 million of subordinated long-term debt previously issued to HSBC USA. In conjunction with these repayments, HSBC USA received a capital contribution of $4,000 million from its immediate parent, HNAI, in exchange for one share of common stock and HSBC USA made capital contributions to its subsidiary, HSBC Bank USA, of $2,400 million in exchange for two shares of common stock and $2,500 million in exchange for 250 shares of non-cumulative preferred stock. These capital actions were taken to support our growth strategy and to strengthen the Basel III regulatory capital positions of both HSBC USA and HSBC Bank USA.

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss includes certain items that are reported directly within a separate component of shareholders’ equity. The following table presents changes in accumulated other comprehensive loss balances:

Three Months Ended March 31,	2015			2014
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	158		$	(18	)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(11) million and $93 million, respectively	(19		)	144
Reclassification adjustment for gains realized in net income, net of tax of $(9) million and $(9) million, respectively(1)	(14		)	(14		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of $3 million(2)	5			—
Total other comprehensive income (loss) for period	(28		)	130
Balance at end of period	130			112
Unrealized losses on other-than-temporarily impaired debt securities held-to-maturity:
Balance at beginning of period	—			(60		)
Other comprehensive income for period:
Reclassification adjustment related to the accretion of unrealized other-than-temporary impairment, net of tax of $1 million(3)	—			1
Total other comprehensive income for period	—			1
Balance at end of period	—			(59		)
Unrealized losses on derivatives designated as cash flow hedges:
Balance at beginning of period	(156		)	(83		)
Other comprehensive loss for period:
Net unrealized losses arising during period, net of tax of $(12) million and $(13) million, respectively	(21		)	(21		)
Reclassification adjustment for losses realized in net income, net of tax of $1 million and less than $1 million, respectively(4)	2			1
Total other comprehensive loss for period	(19		)	(20		)
Balance at end of period	(175		)	(103		)
Pension and postretirement benefit liability:
Balance at beginning of period	(3		)	2
Other comprehensive income for period:
Change in unfunded pension and postretirement liability, net of tax of less than $1 million	1			—
Total other comprehensive income for period	1			—
Balance at and end of period	(2		)	2
Total accumulated other comprehensive loss at end of period	$	(47	)	$	(48	)

⁽¹⁾  Amount reclassified to net income is included in other securities gains, net in our consolidated statement of income.

⁽²⁾  Amount amortized to net income is included in interest income in our consolidated statement of income. During the third quarter of 2014, we transferred securities from available-for-sale to held-to-maturity. At the date of transfer, AOCI included net pretax unrealized losses of $234 million related to the transferred securities which will be amortized over the remaining contractual life of each security as an adjustment of yield in a manner consistent with the amortization of any premium or discount.

⁽³⁾  Amount reclassified to the carrying value of the debt securities is included in securities held-to-maturity in our consolidated balance sheet.

⁽⁴⁾  Amount reclassified to net income is included in interest income (expense) in our consolidated statement of income.

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Derivative Financial Instruments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Derivative [Line Items]
Basis adjustments for active fair value hedges which increased (decreased) the carrying amount of our debt (less than $1 million for the three months ended March 31, 2015)	$ (1)	$ 1
Amortization of basis adjustments related to terminated and/or re-designated fair value hedge relationships of our debt	1	3
Basis adjustments for active fair value hedges which increased (decreased) the carrying amount of available for sale securities	219	176
Accumulated unamortized basis adjustment for active fair value hedges which increased (decreased) the carrying amount of our available for sale securities	638		(458)
Amortization of basis adjustments related to terminated and/or re-designated cash flow hedge relationships	3	1
Next twelve months, reclassification of remaining losses to earnings resulting from cash flow hedges	11
Aggregate fair value of all derivative instruments with credit-risk-related contingent	8,862		7,006
Collateral already posted aggregate fair value	7,751		6,136
Subordinated Debt [Member]
Derivative [Line Items]
Accumulated unamortized basis adjustment for terminated and/or re-designated fair value hedges of our debt	$ 19		$ 21

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Intangible Assets

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

Intangible assets consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Mortgage servicing rights	$	140	$	159
Purchased credit card relationships	46		47
Total intangible assets	$	186	$	206

Mortgage Servicing Rights ("MSRs")  A servicing asset is a contract under which estimated future revenues from contractually specified cash flows, such as servicing fees and other ancillary revenues, are expected to exceed the obligation to service the financial assets. We recognize the right to service mortgage loans as a separate and distinct asset at the time they are acquired or when originated loans are sold.

MSRs are subject to credit, prepayment and interest rate risk, in that their value will fluctuate as a result of changes in these economic variables. Interest rate risk is mitigated through an economic hedging program that uses securities and derivatives to offset changes in the fair value of MSRs. Since the hedging program involves trading activity, risk is quantified and managed using a number of risk assessment techniques.

MSRs are initially measured at fair value at the time that the related loans are sold and remeasured at fair value at each reporting date. Changes in fair value of MSRs are reflected in residential mortgage banking revenue in the period in which the changes occur. Fair value is determined based upon the application of valuation models and other inputs. The valuation models incorporate assumptions market participants would use in estimating future cash flows. The reasonableness of these valuation models is periodically validated by reference to external independent broker valuations and industry surveys.

The following table summarizes the critical assumptions used to calculate the fair value of MSRs:

	March 31, 2015		December 31, 2014
Annualized constant prepayment rate ("CPR")	18.2	%	15.9	%
Constant discount rate	14.0	%	14.1	%
Weighted average life (in years)	3.7		4.1

The following table summarizes MSRs activity:

Three Months Ended March 31,	2015			2014
	(in millions)
Fair value of MSRs:
Beginning balance	$	159		$	227
Changes in fair value due to changes in valuation model inputs or assumptions	(11		)	(12		)
Reductions related to customer payments	(8		)	(10		)
Ending balance	$	140		$	205

The outstanding principal balance of serviced for others mortgages, which are not included in the consolidated balance sheet, totaled $22,244 million and $23,101 million at March 31, 2015 and December 31, 2014, respectively.

Servicing fees collected are included in residential mortgage banking revenue and totaled $15 million and $18 million during the three months ended March 31, 2015 and 2014, respectively.

During 2013, we completed the conversion of our mortgage processing and servicing operations to PHH Mortgage. Under the terms of the agreement, PHH Mortgage provides us with mortgage origination processing services as well as the sub-servicing of our portfolio of owned and serviced for others mortgages with an outstanding principal balance of $40,319 million and $40,889 million at March 31, 2015 and December 31, 2014, respectively. Although we continue to own both the mortgages on our balance sheet and the mortgage servicing rights associated with the serviced loans at the time of conversion, we now sell our agency eligible originations to PHH Mortgage on a servicing released basis which results in no new mortgage servicing rights being recognized.

Purchased credit card relationships  In 2012, we purchased from HSBC Finance the account relationships associated with $746 million of credit card receivables which were not included in the sale to Capital One Financial Corporation at a fair value of $108 million. Approximately $43 million of this value was associated with the credit card receivables sold to First Niagara. The remaining $65 million was included in intangible assets and is being amortized over the estimated useful life of the credit card relationships which is ten years.

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Loans - Summary of TDR and Related Credit Loss Reserves for TDR Loans (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
TDR Loans	$ 1,242	[1],[2],[3]	$ 1,208	[1],[2],[3]
Allowance for credit losses on TDR Loans	51	[4]	56	[4]
Unpaid Principal Balance of TDR Loans	1,457		1,441
Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	236	[2],[3]	210	[2],[3]
Allowance for credit losses on TDR Loans	6	[4]	9	[4]
Unpaid Principal Balance of TDR Loans	260		252
Commercial Loans [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	179	[2],[3]	186	[2],[3]
Allowance for credit losses on TDR Loans	2	[4]	4	[4]
Unpaid Principal Balance of TDR Loans	197		201
Commercial Loans [Member] | Business and Corporate Banking [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	44	[2],[3]	24	[2],[3]
Allowance for credit losses on TDR Loans	4	[4]	5	[4]
Unpaid Principal Balance of TDR Loans	50		51
Commercial Loans [Member] | Global Banking [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	13	[2],[3]	0	[2],[3]
Unpaid Principal Balance of TDR Loans	13		0
Consumer Loans [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	1,006	[2],[3]	998	[2],[3]
Allowance for credit losses on TDR Loans	45	[4]	47	[4]
Unpaid Principal Balance of TDR Loans	1,197		1,189
Consumer Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	980	[2],[3],[5]	972	[2],[3],[5]
Allowance for credit losses on TDR Loans	42	[4]	43	[4]
Unpaid Principal Balance of TDR Loans	1,147		1,139
Consumer Loans [Member] | Home Equity Line of Credit [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	20	[2],[3],[5]	20	[2],[3],[5]
Allowance for credit losses on TDR Loans	1	[4]	2	[4]
Unpaid Principal Balance of TDR Loans	44		44
Consumer Loans [Member] | Credit Cards [Member]
Financing Receivable, Impaired [Line Items]
TDR Loans	6	[2],[3]	6	[2],[3]
Allowance for credit losses on TDR Loans	2	[4]	2	[4]
Unpaid Principal Balance of TDR Loans	$ 6		$ 6

[1] Includes $451 million and $485 million at March 31, 2015 and December 31, 2014, respectively, of loans which are classified as nonaccrual.

[2] The TDR Loan balances included in the table above reflect the current carrying amount of TDR Loans and includes all basis adjustments on the loan, such as unearned income, unamortized deferred fees and costs on originated loans, partial charge-offs and premiums or discounts on purchased loans. The following table reflects the unpaid principal balance of TDR Loans:March 31, 2015 December 31, 2014 (in millions)Commercial loans: Construction and other real estate$197 $201Business and corporate banking50 51Global banking13 —Total commercial260 252Consumer loans: Residential mortgages1,147 1,139 Home equity mortgages44 44Credit cards6 6Total consumer1,197 1,189Total$1,457 $1,441

[3] TDR Loans are considered to be impaired loans. For consumer loans, all such loans are considered impaired loans regardless of accrual status. For commercial loans, impaired loans include other loans in addition to TDR Loans which totaled $79 million and $85 million at March 31, 2015 and December 31, 2014, respectively.

[4] Included in the allowance for credit losses.

[5] Includes $778 million and $763 million at March 31, 2015 and December 31, 2014, respectively, of loans that are recorded at the lower of amortized cost or fair value of the collateral less cost to sell.

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Guarantee Arrangements and Pledged Assets and Collateral - Net Credit Derivative Positions (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Credit Derivatives [Line Items]
Carrying/Fair Value	$ 8,862		$ 7,006
Net position, Carrying/Fair Value	366	[1]	257	[1]
Notional	6,179	[1]	5,201	[1]
Sell-protection credit derivative positions [Member]
Credit Derivatives [Line Items]
Carrying/Fair Value	(1,776)		(1,484)
Notional	115,685		117,768
Buy-protection credit derivative positions [Member]
Credit Derivatives [Line Items]
Carrying/Fair Value	2,142		1,741
Notional	$ 121,864		$ 122,969

[1] Positions are presented net in the table above to provide a complete analysis of our risk exposure and depict the way we manage our credit derivative portfolio. The offset of the sell-protection credit derivatives against the buy-protection credit derivatives may not be legally binding in the absence of master netting agreements with the same counterparty. Furthermore, the credit loss triggering events for individual sell protection credit derivatives may not be the same or occur in the same period as those of the buy protection credit derivatives thereby not providing an exact offset.

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Allowance for Credit Losses

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Allowance for Credit Losses

 Allowance for Credit Losses

The following table summarizes the changes in the allowance for credit losses by product and the related loan balance by product during the three months ended March 31, 2015 and 2014:

	Commercial												Consumer
	Construction and Other Real Estate			Business and Corporate Banking			Global Banking			Other Comm’l			Residential Mortgages			Home Equity Mortgages			Credit Card			Other Consumer			Total
	(in millions)
Three Months Ended March 31, 2015
Allowance for credit losses – beginning of period	$	89		$	275		$	107		$	21		$	107		$	32		$	39		$	10		$	680
Provision charged (credited) to income	2			24			21			1			—			(2		)	3			4			53
Charge offs	(1		)	(6		)	—			(1		)	(14		)	(2		)	(8		)	(6		)	(38		)
Recoveries	—			2			—			—			2			1			1			2			8
Net (charge offs) recoveries	(1		)	(4		)	—			(1		)	(12		)	(1		)	(7		)	(4		)	(30		)
Allowance for credit losses – end of period	$	90		$	295		$	128		$	21		$	95		$	29		$	35		$	10		$	703
Ending balance: collectively evaluated for impairment	$	87		$	272		$	128		$	20		$	53		$	28		$	33		$	10		$	631
Ending balance: individually evaluated for impairment	3			23			—			1			42			1			2			—			72
Total allowance for credit losses	$	90		$	295		$	128		$	21		$	95		$	29		$	35		$	10		$	703
Loans:
Collectively evaluated for impairment	$	10,702		$	19,155		$	28,016		$	3,459		$	15,281		$	1,640		$	674		$	424		$	79,351
Individually evaluated for impairment(1)	199			96			13			7			217			5			6			—			543
Loans carried at lower of amortized cost or fair value less cost to sell	—			—			—			—			1,493			71			—			—			1,564
Total loans	$	10,901		$	19,251		$	28,029		$	3,466		$	16,991		$	1,716		$	680		$	424		$	81,458
Three Months Ended March 31, 2014
Allowance for credit losses – beginning of period	$	108		$	112		$	68		$	20		$	186		$	49		$	50		$	13		$	606
Provision charged (credited) to income	2			19			7			(4		)	(16		)	2			5			1			16
Charge offs	(19		)	(5		)	(8		)	—			(17		)	(5		)	(11		)	(2		)	(67		)
Recoveries	2			3			—			3			3			6			1			1			19
Net (charge offs) recoveries	(17		)	(2		)	(8		)	3			(14		)	1			(10		)	(1		)	(48		)
Allowance for credit losses – end of period	$	93		$	129		$	67		$	19		$	156		$	52		$	45		$	13		$	574
Ending balance: collectively evaluated for impairment	$	84		$	126		$	67		$	18		$	96		$	50		$	43		$	13		$	497
Ending balance: individually evaluated for impairment	9			3			—			1			60			2			2			—			77
Total allowance for credit losses	$	93		$	129		$	67		$	19		$	156		$	52		$	45		$	13		$	574
Loans:
Collectively evaluated for impairment	$	8,905		$	15,681		$	21,979		$	3,031		$	14,150		$	1,851		$	674		$	483		$	66,754
Individually evaluated for impairment(1)	260			17			—			20			202			19			9			—			527
Loans carried at lower of amortized cost or fair value less cost to sell	—			—			—			—			1,548			68			—			—			1,616
Total loans	$	9,165		$	15,698		$	21,979		$	3,051		$	15,900		$	1,938		$	683		$	483		$	68,897

⁽¹⁾  For consumer loans and certain small business loans, these amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow analysis is then applied to these groups of TDR Loans. Loans individually evaluated for impairment exclude TDR loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $778 million and $718 million at March 31, 2015 and 2014, respectively.

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Loans Held for Sale

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Loans Held for Sale

Loans Held for Sale

Loans held for sale consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Commercial loans	$	291	$	528
Consumer loans:
Residential mortgages	24		18
Other consumer	90		66
Total consumer loans	114		84
Total loans held for sale	$	405	$	612

We originate commercial loans in connection with our participation in a number of syndicated credit facilities with the intent of selling the loans to unaffiliated third parties. We also purchase commercial loans from the secondary market and hold the loans as hedges against our exposure to certain total return swaps. The commercial loans under these programs are classified as commercial loans held for sale and are recorded at fair value as we have elected to designate these loans under the fair value option. The fair value of these commercial loans held for sale was $255 million and $384 million at March 31, 2015 and December 31, 2014, respectively. See Note 10, "Fair Value Option," for additional information.

Commercial loans held for sale also included $34 million and $44 million of global banking loans at March 31, 2015 and December 31, 2014, respectively, which were transferred to held for sale during 2014, as well as commercial real estate loans totaling $2 million and $100 million at March 31, 2015 and December 31, 2014, respectively.

We sell all our agency eligible loan originations servicing released directly to PHH Mortgage Corporation ("PHH Mortgage"). Gains and losses from the sale of residential mortgage loans are reflected as a component of residential mortgage banking revenue in the accompanying consolidated statement of income. Also included in residential mortgage loans held for sale are subprime residential mortgage loans with a fair value of $4 million at both March 31, 2015 and December 31, 2014 which were acquired from unaffiliated third parties and from HSBC Finance Corporation ("HSBC Finance") with the intent of securitizing or selling the loans to third parties.

Loans held for sale are subject to market risk, liquidity risk and interest rate risk, in that their value will fluctuate as a result of changes in market conditions, as well as the credit environment. PHH Mortgage is obligated to purchase agency eligible loans from us as of the earlier of when the customer locks the mortgage loan pricing or when the mortgage loan application is approved. As such, we retain none of the risk of market changes in mortgage rates for these loans.

Other consumer loans held for sale includes student loans which we no longer originate.

Excluding the commercial loans designated under fair value option discussed above, loans held for sale are recorded at the lower of amortized cost or fair value. The valuation allowance on consumer loans held for sale was $12 million and $15 million at March 31, 2015 and December 31, 2014, respectively. The valuation allowance on commercial loans held for sale was $12 million at March 31, 2015 compared with $5 millionallowance at December 31, 2014.

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Goodwill

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

Goodwill was $1,612 million at both March 31, 2015 and December 31, 2014. Included in goodwill for these periods were accumulated impairment losses of $670 million. During the first quarter of 2015, there were no events or changes in circumstances to indicate that it is more likely than not that the fair values of any of our reporting units have reduced below their respective carrying amounts.

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Loans - Impaired Commercial Loans Considered as TDR Loans (Detail) (Commercial Loans [Member], USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Amount with Impairment Reserves	$ 83		$ 92
Amount without Impairment Reserves	232		203
Total Impaired Commercial Loans	315	[1],[2]	295	[1],[2]
Impairment Reserve	27		30
Construction and Other Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Amount with Impairment Reserves	14		18
Amount without Impairment Reserves	185		179
Total Impaired Commercial Loans	199	[1],[2]	197	[1],[2]
Impairment Reserve	3		5
Business and Corporate Banking [Member]
Financing Receivable, Impaired [Line Items]
Amount with Impairment Reserves	68		72
Amount without Impairment Reserves	28		18
Total Impaired Commercial Loans	96	[1],[2]	90	[1],[2]
Impairment Reserve	23		24
Global Banking [Member]
Financing Receivable, Impaired [Line Items]
Amount with Impairment Reserves	0		0
Amount without Impairment Reserves	13		0
Total Impaired Commercial Loans	13	[1],[2]	0	[1],[2]
Impairment Reserve	0		0
Other Commercial [Member]
Financing Receivable, Impaired [Line Items]
Amount with Impairment Reserves	1		2
Amount without Impairment Reserves	6		6
Total Impaired Commercial Loans	7	[1],[2]	8	[1],[2]
Impairment Reserve	$ 1		$ 1

[1] The impaired commercial loan balances included in the table above reflect the current carrying amount of the loan and includes all basis adjustments, such as partial charge-offs, unamortized deferred fees and costs on originated loans and any premiums or discounts. The following table reflects the unpaid principal balance of impaired commercial loans included in the table above:March 31, 2015 December 31, 2014 (in millions)Construction and other real estate$223 $224Business and corporate banking101 122Global banking13 —Other commercial7 8Total commercial$344 $354

[2] Includes impaired commercial loans that are also considered TDR Loans which totaled $236 million and $210 million at March 31, 2015 and December 31, 2014, respectively.

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Fair Value Measurements - Changes in Fair Value of Level 3 Assets and Liabilities (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Beginning Balance	$ 3,504		$ 3,150
Fair Value Assets, Purchases	8		553
Fair Value Assets, Issuances	0		0
Fair Value Assets, Settlements	(39)		(29)
Fair Value Assets, Transfers Into Level 3	0		4
Fair Value Assets, Transfers Out of Level 3	(1)		11
Fair Value Assets, Ending Balance	3,498		3,690
Fair Value Assets, Current Period Unrealized Gains (Losses)	(13)		(30)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Liability, Beginning Balance	(2,615)		(3,234)
Fair Value Liability, Purchases	0		0
Fair Value Liability, Issuances	(176)		(68)
Fair Value Liability, Settlements	128		214
Fair Value Liability, Transfers Into Level 3	0		(68)
Fair Value Liability, Transfers Out of Level 3	121		211
Fair Value Liability, Ending Balance	(2,568)		(2,976)
Fair Value Liability, Current Period Unrealized Gains (Losses)	(19)		(25)
Interest rate contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Beginning Balance	0	[1]	1	[1]
Fair Value Assets, Purchases	0	[1]	0	[1]
Fair Value Assets, Issuances	0	[1]	0	[1]
Fair Value Assets, Settlements	0	[1]	0	[1]
Fair Value Assets, Transfers Into Level 3	0	[1]	0	[1]
Fair Value Assets, Transfers Out of Level 3	0	[1]	0	[1]
Fair Value Assets, Ending Balance	20	[1]	1	[1]
Fair Value Assets, Current Period Unrealized Gains (Losses)	20	[1]	0	[1]
Foreign exchange contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Beginning Balance	0	[1]	95	[1]
Fair Value Assets, Purchases	0	[1]	0	[1]
Fair Value Assets, Issuances	0	[1]	0	[1]
Fair Value Assets, Settlements	0	[1]	(6)	[1]
Fair Value Assets, Transfers Into Level 3	0	[1]	0	[1]
Fair Value Assets, Transfers Out of Level 3	0	[1]	6	[1]
Fair Value Assets, Ending Balance	0	[1]	96	[1]
Fair Value Assets, Current Period Unrealized Gains (Losses)	0	[1]	1	[1]
Equity contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Beginning Balance	42	[1]	3	[1]
Fair Value Assets, Purchases	0	[1]	0	[1]
Fair Value Assets, Issuances	0	[1]	0	[1]
Fair Value Assets, Settlements	(21)	[1]	(7)	[1]
Fair Value Assets, Transfers Into Level 3	0	[1]	4	[1]
Fair Value Assets, Transfers Out of Level 3	(1)	[1]	5	[1]
Fair Value Assets, Ending Balance	43	[1]	24	[1]
Fair Value Assets, Current Period Unrealized Gains (Losses)	14	[1]	12	[1]
Precious metals contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Beginning Balance			(2)	[1]
Fair Value Assets, Purchases			0	[1]
Fair Value Assets, Issuances			0	[1]
Fair Value Assets, Settlements			0	[1]
Fair Value Assets, Transfers Into Level 3			0	[1]
Fair Value Assets, Transfers Out of Level 3			0	[1]
Fair Value Assets, Ending Balance			0	[1]
Fair Value Assets, Current Period Unrealized Gains (Losses)			0	[1]
Credit contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Beginning Balance	210	[1]	191	[1]
Fair Value Assets, Purchases	0	[1]	0	[1]
Fair Value Assets, Issuances	0	[1]	0	[1]
Fair Value Assets, Settlements	(6)	[1]	3	[1]
Fair Value Assets, Transfers Into Level 3	0	[1]	0	[1]
Fair Value Assets, Transfers Out of Level 3	0	[1]	0	[1]
Fair Value Assets, Ending Balance	192	[1]	181	[1]
Fair Value Assets, Current Period Unrealized Gains (Losses)	(40)	[1]	(28)	[1]
Collateralized debt obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Beginning Balance	253		254
Fair Value Assets, Purchases	0		0
Fair Value Assets, Issuances	0		0
Fair Value Assets, Settlements	(8)		(3)
Fair Value Assets, Transfers Into Level 3	0		0
Fair Value Assets, Transfers Out of Level 3	0		0
Fair Value Assets, Ending Balance	254		258
Fair Value Assets, Current Period Unrealized Gains (Losses)	7		7
Corporate and other domestic [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Beginning Balance	2,840		2,260
Fair Value Assets, Purchases	8		553
Fair Value Assets, Issuances	0		0
Fair Value Assets, Settlements	0		0
Fair Value Assets, Transfers Into Level 3	0		0
Fair Value Assets, Transfers Out of Level 3	0		0
Fair Value Assets, Ending Balance	2,848		2,808
Fair Value Assets, Current Period Unrealized Gains (Losses)	0		(6)
Government debt securities issued by foreign entities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Beginning Balance			121
Fair Value Assets, Purchases			0
Fair Value Assets, Issuances			0
Fair Value Assets, Settlements			(6)
Fair Value Assets, Transfers Into Level 3			0
Fair Value Assets, Transfers Out of Level 3			0
Fair Value Assets, Ending Balance			117
Fair Value Assets, Current Period Unrealized Gains (Losses)			(4)
Mortgage servicing rights [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Beginning Balance	159	[2]	227	[2]
Fair Value Assets, Purchases	0	[2]	0	[2]
Fair Value Assets, Issuances	0	[2]	0	[2]
Fair Value Assets, Settlements	(4)	[2]	(10)	[2]
Fair Value Assets, Transfers Into Level 3	0	[2]	0	[2]
Fair Value Assets, Transfers Out of Level 3	0	[2]	0	[2]
Fair Value Assets, Ending Balance	141	[2]	205	[2]
Fair Value Assets, Current Period Unrealized Gains (Losses)	(14)	[2]	(12)	[2]
Deposits [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Liability, Beginning Balance	(1,968)		(2,334)	[3]
Fair Value Liability, Purchases	0		0	[3]
Fair Value Liability, Issuances	(89)		(25)	[3]
Fair Value Liability, Settlements	49		167	[3]
Fair Value Liability, Transfers Into Level 3	0		(68)	[3]
Fair Value Liability, Transfers Out of Level 3	101		140	[3]
Fair Value Liability, Ending Balance	(1,926)		(2,244)	[3]
Fair Value Liability, Current Period Unrealized Gains (Losses)	(13)		(23)	[3]
Long-term debt [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Liability, Beginning Balance	(647)		(900)	[3]
Fair Value Liability, Purchases	0		0	[3]
Fair Value Liability, Issuances	(87)		(43)	[3]
Fair Value Liability, Settlements	79		47	[3]
Fair Value Liability, Transfers Into Level 3	0		0	[3]
Fair Value Liability, Transfers Out of Level 3	20		71	[3]
Fair Value Liability, Ending Balance	(642)		(732)	[3]
Fair Value Liability, Current Period Unrealized Gains (Losses)	(6)		(2)	[3]
Trading Gain (Loss) [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	39	[4]	13	[4]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Liability, Gains (Losses) Included In Revenue	0	[4]	(31)	[4]
Trading Gain (Loss) [Member] | Interest rate contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	19	[1],[4]	0	[1],[4]
Trading Gain (Loss) [Member] | Foreign exchange contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	0	[1],[4]	1	[1],[4]
Trading Gain (Loss) [Member] | Equity contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	23	[1],[4]	19	[1],[4]
Trading Gain (Loss) [Member] | Precious metals contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue			2	[1],[4]
Trading Gain (Loss) [Member] | Credit contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	(12)	[1],[4]	(13)	[1],[4]
Trading Gain (Loss) [Member] | Collateralized debt obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	9	[4]	7	[4]
Trading Gain (Loss) [Member] | Corporate and other domestic [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	0	[4]	(5)	[4]
Trading Gain (Loss) [Member] | Government debt securities issued by foreign entities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue			2	[4]
Trading Gain (Loss) [Member] | Mortgage servicing rights [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	0	[2],[4]	0	[2],[4]
Trading Gain (Loss) [Member] | Deposits [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Liability, Gains (Losses) Included In Revenue	0	[2],[4]	(124)	[3],[4]
Trading Gain (Loss) [Member] | Long-term debt [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Liability, Gains (Losses) Included In Revenue	0	[2],[4]	93	[3],[4]
Other Income [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	(13)	[4]	(12)	[4]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Liability, Gains (Losses) Included In Revenue	(26)	[4]	0	[4]
Other Income [Member] | Interest rate contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	1	[1],[4]	0	[1],[4]
Other Income [Member] | Foreign exchange contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	0	[1],[4]	0	[1],[4]
Other Income [Member] | Equity contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	0	[1],[4]	0	[1],[4]
Other Income [Member] | Precious metals contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue			0	[1],[4]
Other Income [Member] | Credit contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	0	[1],[4]	0	[1],[4]
Other Income [Member] | Collateralized debt obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	0	[4]	0	[4]
Other Income [Member] | Corporate and other domestic [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	0	[4]	0	[4]
Other Income [Member] | Government debt securities issued by foreign entities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue			0	[4]
Other Income [Member] | Mortgage servicing rights [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Assets, Gains (Losses) Included In Revenue	(14)	[2],[4]	(12)	[2],[4]
Other Income [Member] | Deposits [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Liability, Gains (Losses) Included In Revenue	(19)	[2],[4]	0	[3],[4]
Other Income [Member] | Long-term debt [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Liability, Gains (Losses) Included In Revenue	$ (7)	[2],[4]	$ 0	[3],[4]

[1] Level 3 net derivatives included derivative assets of $463 million and derivative liabilities of $208 million as of March 31, 2015 and derivative assets of $694 million and derivative liabilities of $392 million as of March 31, 2014.

[2] See Note 7, "Intangible Assets," for additional information.

[3] See Note 10, "Fair Value Option," for additional information.

[4] Includes realized and unrealized gains and losses.

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Derivative Financial Instruments - Gains and Losses on Hedged Items in Fair Value Hedges (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Interest Income Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivative	$ (51)	$ (60)
Gain (Loss) on Hedged Items	77	87
Other Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivative	(249)	(220)
Gain (Loss) on Hedged Items	240	214
Net Ineffective Gain (Loss) Recognized - Other Income	(9)	(6)
Available-for-sale Securities [Member] | Interest Income [Member] | Interest rate contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivative	(54)	(64)
Gain (Loss) on Hedged Items	88	102
Available-for-sale Securities [Member] | Other Income [Member] | Interest rate contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivative	(249)	(219)
Gain (Loss) on Hedged Items	240	213
Net Ineffective Gain (Loss) Recognized - Other Income	(9)	(6)
Subordinated Debt [Member] | Interest Expense [Member] | Interest rate contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivative	3	4
Gain (Loss) on Hedged Items	(11)	(15)
Subordinated Debt [Member] | Other Income [Member] | Interest rate contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivative	0	(1)
Gain (Loss) on Hedged Items	0	1
Net Ineffective Gain (Loss) Recognized - Other Income	$ 0	$ 0

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Loans - Average Balance and Interest Income Recognized on Impaired Commercial Loans (Detail) (Commercial Loans [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Financing Receivable, Impaired [Line Items]
Total average balance of impaired commercial loans	$ 306	$ 397
Total interest income recognized on impaired commercial loans	2	6
Construction and Other Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Total average balance of impaired commercial loans	198	297
Total interest income recognized on impaired commercial loans	1	6
Business and Corporate Banking [Member]
Financing Receivable, Impaired [Line Items]
Total average balance of impaired commercial loans	93	35
Total interest income recognized on impaired commercial loans	1	0
Global Banking [Member]
Financing Receivable, Impaired [Line Items]
Total average balance of impaired commercial loans	7	33
Other Commercial [Member]
Financing Receivable, Impaired [Line Items]
Total average balance of impaired commercial loans	$ 8	$ 32

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Business Segments - Summary on Reconciliation of Results Under Ifrs to Us Gaap (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014		Dec. 31, 2014
Operating Statistics [Line Items]
Net interest income	$ 606	[1]	$ 519	[1]
Other operating income	464		500
Total operating income	1,070		1,019
Loan impairment charges	53		16
Total income	1,017		1,003
Operating expenses	777	[2]	750	[2]
Income before income tax	240		253
Total assets	201,594	[3]	187,174		185,539	[3]
Total loans, net	80,755		68,323		77,061
Goodwill	1,612		1,612		1,612
Total deposits	119,094		105,531		116,118
Group Reporting Basis Adjustments [Member]
Operating Statistics [Line Items]
Group Reporting Basis Net interest income	(14)	[1]	(15)	[1]
Group Reporting Basis Other operating income	(10)		(4)
Group Reporting Basis Total operating income	(24)		(19)
Group Reporting Basis Loan impairment charges	14		4
Group Reporting Basis Revenues	(38)		(23)
Group Reporting Basis Operating expenses	(17)	[2]	(8)	[2]
Group Reporting Basis Income (loss) from continuing operations before income tax	(21)		(15)
Group Reporting Basis Total assets	(56,958)		(47,888)
Group Reporting Basis Total loans, net	891		1,411
Group Reporting Basis Goodwill	348		348
Group Reporting Basis Total deposits	(5,975)		(3,247)
Group Reporting Basis Reclassifications [Member]
Operating Statistics [Line Items]
Group Reporting Basis Net interest income	66	[1]	21	[1]
Group Reporting Basis Other operating income	(67)		(26)
Group Reporting Basis Total operating income	(1)		(5)
Group Reporting Basis Loan impairment charges	(1)		(7)
Group Reporting Basis Revenues	0		2
Group Reporting Basis Operating expenses	0	[2]	2	[2]
Group Reporting Basis Income (loss) from continuing operations before income tax	0		0
Group Reporting Basis Total assets	41		(174)
Group Reporting Basis Total loans, net	3,548		2,719
Group Reporting Basis Goodwill	0		0
Group Reporting Basis Total deposits	23,756		14,663
Aggregate [Member]
Operating Statistics [Line Items]
Group Reporting Basis Net interest income	554	[1]	513	[1]
Group Reporting Basis Other operating income	541		530
Group Reporting Basis Total operating income	1,095		1,043
Group Reporting Basis Loan impairment charges	40		19
Group Reporting Basis Revenues	1,055		1,024
Group Reporting Basis Operating expenses	794	[2]	756	[2]
Group Reporting Basis Income (loss) from continuing operations before income tax	261		268
Group Reporting Basis Total assets	258,511		235,236
Group Reporting Basis Total loans, net	76,316		64,193
Group Reporting Basis Goodwill	1,264		1,264
Group Reporting Basis Total deposits	101,313		94,115
Segment Reconciling Items [Member]
Operating Statistics [Line Items]
Group Reporting Basis Net interest income	(5)	[1]	(5)	[1]
Group Reporting Basis Other operating income	5		5
Group Reporting Basis Total operating income	0		0
Group Reporting Basis Loan impairment charges	0		0
Group Reporting Basis Revenues	0		0
Group Reporting Basis Operating expenses	0	[2]	0	[2]
Group Reporting Basis Income (loss) from continuing operations before income tax	0		0
Group Reporting Basis Total assets	0		0
Group Reporting Basis Total loans, net	0		0
Group Reporting Basis Goodwill	0		0
Group Reporting Basis Total deposits	0		0
RBWM [Member] | Operating Segments [Member]
Operating Statistics [Line Items]
Group Reporting Basis Net interest income	197	[1]	198	[1]
Group Reporting Basis Other operating income	87		113
Group Reporting Basis Total operating income	284		311
Group Reporting Basis Loan impairment charges	22		2
Group Reporting Basis Revenues	262		309
Group Reporting Basis Operating expenses	281	[2]	279	[2]
Group Reporting Basis Income (loss) from continuing operations before income tax	(19)		30
Group Reporting Basis Total assets	19,856		19,143
Group Reporting Basis Total loans, net	16,902		16,177
Group Reporting Basis Goodwill	581		581
Group Reporting Basis Total deposits	29,240		30,206
CMB [Member] | Operating Segments [Member]
Operating Statistics [Line Items]
Group Reporting Basis Net interest income	201	[1]	187	[1]
Group Reporting Basis Other operating income	77		68
Group Reporting Basis Total operating income	278		255
Group Reporting Basis Loan impairment charges	10		7
Group Reporting Basis Revenues	268		248
Group Reporting Basis Operating expenses	169	[2]	158	[2]
Group Reporting Basis Income (loss) from continuing operations before income tax	99		90
Group Reporting Basis Total assets	30,788		25,594
Group Reporting Basis Total loans, net	29,649		24,509
Group Reporting Basis Goodwill	358		358
Group Reporting Basis Total deposits	22,209		21,254
GBM [Member] | Operating Segments [Member]
Operating Statistics [Line Items]
Group Reporting Basis Net interest income	118	[1]	97	[1]
Group Reporting Basis Other operating income	266		294
Group Reporting Basis Total operating income	384		391
Group Reporting Basis Loan impairment charges	8		15
Group Reporting Basis Revenues	376		376
Group Reporting Basis Operating expenses	259	[2]	239	[2]
Group Reporting Basis Income (loss) from continuing operations before income tax	117		137
Group Reporting Basis Total assets	198,942		181,545
Group Reporting Basis Total loans, net	23,341		17,485
Group Reporting Basis Goodwill	0		0
Group Reporting Basis Total deposits	38,891		30,126
PB [Member] | Operating Segments [Member]
Operating Statistics [Line Items]
Group Reporting Basis Net interest income	49	[1]	49	[1]
Group Reporting Basis Other operating income	24		25
Group Reporting Basis Total operating income	73		74
Group Reporting Basis Loan impairment charges	0		(5)
Group Reporting Basis Revenues	73		79
Group Reporting Basis Operating expenses	58	[2]	55	[2]
Group Reporting Basis Income (loss) from continuing operations before income tax	15		24
Group Reporting Basis Total assets	8,121		8,231
Group Reporting Basis Total loans, net	6,424		6,022
Group Reporting Basis Goodwill	325		325
Group Reporting Basis Total deposits	10,973		12,529
Other [Member] | Operating Segments [Member]
Operating Statistics [Line Items]
Group Reporting Basis Net interest income	(6)	[1]	(13)	[1]
Group Reporting Basis Other operating income	82		25
Group Reporting Basis Total operating income	76		12
Group Reporting Basis Loan impairment charges	0		0
Group Reporting Basis Revenues	76		12
Group Reporting Basis Operating expenses	27	[2]	25	[2]
Group Reporting Basis Income (loss) from continuing operations before income tax	49		(13)
Group Reporting Basis Total assets	804		723
Group Reporting Basis Total loans, net	0		0
Group Reporting Basis Goodwill	0		0
Group Reporting Basis Total deposits	$ 0		$ 0

[1] Net interest income of each segment represents the difference between actual interest earned on assets and interest paid on liabilities of the segment adjusted for a funding charge or credit. Segments are charged a cost to fund assets (e.g. customer loans) and receive a funding credit for funds provided (e.g. customer deposits) based on equivalent market rates. The objective of these charges/credits is to transfer interest rate risk from the segments to one centralized unit in Balance Sheet Management and more appropriately reflect the profitability of segments.

[2] Expenses for the segments include fully apportioned corporate overhead expenses.

[3] The following table summarizes assets and liabilities related to our consolidated variable interest entities ("VIEs") as of March 31, 2015 and December 31, 2014 which are consolidated on our balance sheet. Assets and liabilities exclude intercompany balances that eliminate in consolidation. See Note 216, "Variable Interest Entities," for additional information. Assets: Other assets $372 million and $380 million. Total assets $372 million and $380 million respectively. Liabilities: Long-term debt $92 million and $92 million, Interest, taxes and other liabilities $86 million and $75 million. Total liabilities $178 million and $167 million, respectively.

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Loans - Loans Classified as TDR Loans (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Financing Receivable, Modifications [Line Items]
Loans which were classified as TDR loans during the previous 12 months which became contractually delinquent	$ 12	$ 20
Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Loans which were classified as TDR loans during the previous 12 months which became contractually delinquent	3	12
Commercial Loans [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Loans which were classified as TDR loans during the previous 12 months which became contractually delinquent	2	12
Commercial Loans [Member] | Business and Corporate Banking [Member]
Financing Receivable, Modifications [Line Items]
Loans which were classified as TDR loans during the previous 12 months which became contractually delinquent	1	0
Consumer Loans [Member]
Financing Receivable, Modifications [Line Items]
Loans which were classified as TDR loans during the previous 12 months which became contractually delinquent	9	8
Consumer Loans [Member] | Residential Mortgage [Member]
Financing Receivable, Modifications [Line Items]
Loans which were classified as TDR loans during the previous 12 months which became contractually delinquent	$ 9	$ 8

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Fair Value Option - Summary of Fair Value and Unpaid Principal Balance (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Loans Receivable [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Commercial loans held for sale, Fair Value	$ 255	$ 384
Commercial loans held for sale, Unpaid Principal Balance	270	390
Long-term debt [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fixed rate long-term debt, Fair Value	2,191	2,179
Fixed rate long-term debt, Unpaid Principal Balance	1,750	1,750
Hybrid instruments, Fair Value	6,842	6,612
Hybrid Instruments, Unpaid Principal Balance	6,466	6,275
Deposits [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Hybrid instruments, Fair Value	6,948	7,346
Hybrid Instruments, Unpaid Principal Balance	$ 6,768	$ 7,176

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Loans Held for Sale (Tables)

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Loans Held for Sale

Loans held for sale consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Commercial loans	$	291	$	528
Consumer loans:
Residential mortgages	24		18
Other consumer	90		66
Total consumer loans	114		84
Total loans held for sale	$	405	$	612

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Securities - Realized gains and losses on investment securities Transactions Attributable to available-for-sale securities (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Gross realized gains	$ 30	$ 43
Gross realized losses	(7)	(21)
Net realized gains	$ 23	$ 22

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Related Party Transactions

3 Months Ended

Mar. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

In the normal course of business, we conduct transactions with HSBC and its subsidiaries. These transactions occur at prevailing market rates and terms and include funding arrangements, derivative, servicing arrangements, information technology, centralized support services, banking and other miscellaneous services. All extensions of credit by (and certain credit exposures of) HSBC Bank USA to other HSBC affiliates (other than Federal Deposit Insurance Corporation ("FDIC") insured banks) are legally required to be secured by eligible collateral. The following tables and discussions below present the more significant related party balances and the income (expense) generated by related party transactions:

	March 31, 2015		December 31, 2014
	(in millions)
Assets:
Cash and due from banks	$	171	$	140
Interest bearing deposits with banks(1)	1,017		928
Trading assets(2)	21,048		20,194
Loans	5,016		4,821
Other(3)	1,082		983
Total assets	$	28,334	$	27,066
Liabilities:
Deposits	$	15,688	$	16,596
Trading liabilities(2)	22,478		21,130
Short-term borrowings	1,676		847
Long-term debt	—		3,981
Other(3)	387		459
Total liabilities	$	40,229	$	43,013

⁽¹⁾  Includes interest bearing deposits with HSBC Mexico S.A. of $800 million at both March 31, 2015 and December 31, 2014, respectively.

⁽²⁾  Trading assets and trading liabilities do not reflect the impact of netting which allows the offsetting of amounts relating to certain contracts if certain conditions are met. Trading assets and liabilities primarily consist of derivatives contracts.

⁽³⁾  Other assets and other liabilities primarily consist of derivative contracts.

Three Months Ended March 31,	2015			2014
	(in millions)
Income/(Expense):
Interest income	$	30		$	14
Interest expense	(14		)	(18		)
Net interest income (expense)	16			(4		)
Trading revenue	148			852
Servicing and other fees from HSBC affiliates:
HSBC Bank Plc	19			16
HSBC Finance Corporation	16			15
HSBC Markets (USA) Inc. ("HMUS")	7			4
Other HSBC affiliates	14			12
Total servicing and other fees from HSBC affiliates	56			47
Gain (loss) on instruments designed at fair value and related derivatives	258			98
Support services from HSBC affiliates:
HMUS	(64		)	(57		)
HSBC Technology & Services (USA) ("HTSU")	(240		)	(253		)
Other HSBC affiliates	(48		)	(44		)
Total support services from HSBC affiliates	(352		)	(354		)
Stock based compensation expense with HSBC(1)	(13		)	(7		)

⁽¹⁾  Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income. Employees also may participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 12, "Pension and Other Postretirement Benefits."

Funding Arrangements with HSBC Affiliates:

We use HSBC affiliates to fund a portion of our borrowing and liquidity needs. At December 31, 2014, long-term debt with affiliates reflected $4.0 billion in floating rate senior debt with HSBC North America. During the first quarter of 2015, we repaid this debt in full. See Note 15, "Retained Earnings and Regulatory Capital Requirements," for additional details.

We have the following funding arrangements available with HSBC affiliates, although there were no outstanding balances at either March 31, 2015 or December 31, 2014:

• $805 million committed line of credit with HSBC Investment (Bahamas) Limited; and

• $150 million uncommitted line of credit with HSBC North America Inc. ("HNAI").

We have also incurred short-term borrowings with certain affiliates. In addition, certain affiliates have also placed deposits with us.

Lending and Derivative Related Arrangements Extended to HSBC Affiliates:

At March 31, 2015 and December 31, 2014, we have the following loan balances outstanding with HSBC affiliates:

	March 31, 2015		December 31, 2014
	(in millions)
HSBC Finance Corporation	$	3,014	$	3,014
HSBC Markets (USA) Inc. ("HMUS") and subsidiaries	764		563
HSBC Bank Brasil S.A.	1,110		1,108
Other short-term affiliate lending	128		136
Total loans	$	5,016	$	4,821

HSBC Finance Corporation We have extended a $5.0 billion, 364-day uncommitted unsecured revolving credit agreement to HSBC Finance which expires during the fourth quarter of 2015. The credit agreement allows for borrowings with maturities of up to 5 years.At both March 31, 2015and December 31, 2014, $3.0 billion was outstanding under this credit agreement with $512 million maturing in September 2017, $1.5 billion maturing in January 2018 and $1.0 billion maturing in September 2018. We have also extended a committed revolving credit facility to HSBC Finance of $1.0 billion which did not have any outstanding balance at either March 31, 2015 or December 31, 2014. This credit facility expires in May 2017.

HMUS and subsidiaries We have extended loans and lines, some of them uncommitted, to HMUS and its subsidiaries in the amount of $6.7 billion at both March 31, 2015 and December 31, 2014, respectively, of which $764 million and $563 million, respectively, was outstanding. The outstanding balances mature in May 2015.

HSBC Bank Brasil S.A. We have extended uncommitted lines of credit to HSBC Bank Brasil in the amount of $1.2 billion of which $1.1 billion was outstanding at both March 31, 2015 and December 31, 2014, respectively. The outstanding balances mature at various stages between 2016 and 2018.

We have extended lines of credit to various other HSBC affiliates totaling$2.3 billionwhich did not have any outstanding balances at eitherMarch 31, 2015 and December 31, 2014.

Other short-term affiliate lending In addition to loans and lines extended to affiliates discussed above, from time to time we may extend loans to affiliates which are generally short term in nature. At March 31, 2015 and December 31, 2014, there were $128 million and $136 million, respectively, of these loans outstanding.

HUSI is also committed to provide liquidity facilities to backstop the liquidity risk in Regency, an asset-backed commercial paper conduit consolidated by an HSBC affiliate, in relation to assets originated in the U.S. The notional amount of the liquidity facilities provided by HUSI to Regency was approximately $2.7 billion as of March 31, 2015, which is less than half of Regency's total liquidity facilities.

As part of a global HSBC strategy to offset interest rate or other market risks associated with certain securities, debt issues and derivative contracts with unaffiliated third parties, we routinely enter into derivative transactions with HSBC Finance, HSBC Bank plc and other HSBC affiliates. The notional value of derivative contracts related to these transactions was approximately $1,063.2 billion and $1,082.6 billion at March 31, 2015 and December 31, 2014, respectively. The net credit exposure (defined as the net fair value of derivative assets and liabilities) related to the contracts was approximately $1,089 million and $1,166 million at March 31, 2015 and December 31, 2014, respectively. Our Global Banking and Markets business accounts for these transactions on a mark to market basis, with the change in value of contracts with HSBC affiliates substantially offset by the change in value of related contracts entered into with unaffiliated third parties.

Services Provided Between HSBC Affiliates:

Under multiple service level agreements, we provide services to and receive services from various HSBC affiliates. The following summarizes these activities:

• Servicing activities for residential mortgage loans across North America are performed both by us and HSBC Finance. As a result, we receive servicing fees from HSBC Finance for services performed on their behalf and pay servicing fees to HSBC Finance for services performed on our behalf. The fees we receive from HSBC Finance are reported in servicing and other fees from HSBC affiliates. Fees we pay to HSBC Finance are reported in support services from HSBC affiliates. This includes fees paid for the servicing of residential mortgage loans (with a carrying amount of $804 million and $837 million at March 31, 2015 and December 31, 2014, respectively) that we purchased from HSBC Finance in 2003 and 2004.

• HSBC North America's technology and certain centralized support services including human resources, corporate affairs, risk management, legal, compliance, tax, finance and other shared services that are centralized within HTSU. HTSU also provides certain item processing and statement processing activities to us. The fees we pay HTSU for the centralized support services and processing activities are included in support services from HSBC affiliates. We also receive fees from HTSU for providing certain administrative services to them. The fees we receive from HTSU are included in servicing and other fees from HSBC affiliates. In certain cases, for facilities used by HTSU, we may guarantee their performance under the lease agreements.

• We use HSBC Global Resourcing (UK) Ltd., an HSBC affiliate located outside of the United States, to provide various support services to our operations including among other areas, customer service, systems, collection and accounting functions. The expenses related to these services are included in support services from HSBC affiliates.

• We utilize HSBC Securities (USA) Inc. ("HSI") for broker dealer, debt underwriting, customer referrals, loan syndication and other treasury and traded markets related services, pursuant to service level agreements. Fees charged by HSI for broker dealer, loan syndication services, treasury and traded markets related services are included in support services from HSBC affiliates. Debt underwriting fees charged by HSI are deferred as a reduction of long-term debt and amortized to interest expense over the life of the related debt. Customer referral fees paid to HSI are netted against customer fee income, which is included in other fees and commissions.

Other Transactions with HSBC Affiliates

We received revenue from our affiliates for rent on certain office space, which has been recorded as a component of support services from HSBC affiliates. Rental revenue from our affiliates totaled $15 million and $14 million during the three months ended March 31, 2015 and 2014, respectively.

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Guarantee Arrangements and Pledged Assets and Collateral - Summary of Pledged Assets Included in Consolidated Balance Sheet (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Interest bearing deposits with banks	$ 397		$ 415
Trading assets	2,809	[1]	2,886	[1]
Securities available-for-sale	24,794	[2]	22,023	[2]
Securities held to maturity	3,410		3,602
Loans	13,488	[3]	12,580	[3]
Other assets	1,996	[4]	2,495	[4]
Total	$ 46,894		$ 44,001

[1] Trading assets are primarily pledged against liabilities associated with repurchase agreements.

[2] Securities available-for-sale are primarily pledged against derivatives, public fund deposits, trust deposits and various short-term and long term borrowings, as well as providing capacity for potential secured borrowings from the Federal Home Loan Bank of New York ("FHLB") and the Federal Reserve Bank of New York.

[3] Loans are primarily residential mortgage loans pledged against current and potential borrowings from the FHLB and the Federal Reserve Bank of New York.

[4] Other assets represent cash on deposit with non-banks related to derivative collateral support agreements.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Accounting principles related to fair value measurements provide a framework for measuring fair value that focuses on the exit price that would be received to sell an asset or paid to transfer a liability in the principal market (or in the absence of the principal market, the most advantageous market) accessible in an orderly transaction between willing market participants (the "Fair Value Framework"). Where required by the applicable accounting standards, assets and liabilities are measured at fair value using the "highest and best use" valuation premise. Fair value measurement guidance clarifies that financial instruments do not have alternative use and, as such, the fair value of financial instruments should be determined using an “in-exchange” valuation premise. However, the fair value measurement literature provides a valuation exception and permits an entity to measure the fair value of a group of financial assets and financial liabilities with offsetting credit risks and/or market risks based on the exit price it would receive or pay to transfer the net risk exposure of a group of assets or liabilities if certain conditions are met. We elected to apply the measurement exception to a group of derivative instruments with offsetting credit risks and market risks, which primarily relate to interest rate, foreign currency, debt and equity price risk, and commodity price risk as of the reporting date.

Fair Value Adjustments  The best evidence of fair value is quoted market price in an actively traded market, where available. In the event listed price or market quotes are not available, valuation techniques that incorporate relevant transaction data and market parameters reflecting the attributes of the asset or liability under consideration are applied. Where applicable, fair value adjustments are made to ensure the financial instruments are appropriately recorded at fair value. The fair value adjustments reflect the risks associated with the products, contractual terms of the transactions, and the liquidity of the markets in which the transactions occur. The fair value adjustments are broadly categorized by the following major types:

Credit risk adjustment - The credit risk adjustment is an adjustment to a group of financial assets and financial liabilities, predominantly derivative assets and derivative liabilities, to reflect the credit quality of the parties to the transaction in arriving at fair value. A credit valuation adjustment to a financial asset is required to reflect the default risk of the counterparty. A debit valuation adjustment to a financial liability is recorded to reflect the default risk of HUSI.

Liquidity risk adjustment - The liquidity risk adjustment (primarily in the form of bid-offer adjustment) reflects the cost that would be incurred to close out the market risks by hedging, disposing or unwinding the position. Valuation models generally produce mid market values. The bid-offer adjustment is made in such a way that results in a measure that reflects the exit price that most represents the fair value of the financial asset or financial liability under consideration or, where applicable, the fair value of the net market risk exposure of a group of financial assets or financial liabilities. These adjustments relate primarily to Level 2 assets.

Model valuation adjustment - Where fair value measurements are determined using an internal valuation model based on observable and unobservable inputs, certain valuation inputs may be less readily determinable. There may be a range of possible valuation inputs that market participants may assume in determining the fair value measurement. The resultant fair value measurement has inherent measurement risk if one or more parameters are unobservable and must be estimated. An input valuation adjustment is necessary to reflect the likelihood that market participants may use different input parameters, and to mitigate the possibility of measurement error. In addition, the values derived from valuation techniques are affected by the choice of valuation model and model limitation. When different valuation techniques are available, the choice of valuation model can be subjective. Furthermore, the valuation model applied may have measurement limitations. In those cases, an additional valuation adjustment is also applied to mitigate the measurement risk. Model valuation adjustments are not material and relate primarily to Level 2 instruments.

We apply stress scenarios in determining appropriate liquidity risk and model risk adjustments for Level 3 fair values by reviewing the historical data for unobservable inputs (e.g., correlation, volatility). Some stress scenarios involve a 95 percent confidence interval (i.e., two standard deviations). Other stress scenarios may be performed using highly stressed historical inputs such as credit spreads experienced during a credit crisis. We also utilize unobservable parameter adjustments when instruments are valued using internally developed models which reflects the uncertainty in the value estimates provided by the model.

Valuation of uncollateralized derivatives - During 2014, we adopted a funding fair value adjustment ("FFVA") to reflect the estimated present value of the future market funding cost or benefit associated with funding uncollateralized derivative exposure at rates other than the Overnight Indexed Swap ("OIS") rate. See "Valuation Techniques - Derivatives" below for additional details.

Fair Value Hierarchy  The Fair Value Framework establishes a three-tiered fair value hierarchy as follows:

Level 1 quoted market price - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 valuation technique using observable inputs - Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are inactive, and measurements determined using valuation models where all significant inputs are observable, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 valuation technique with significant unobservable inputs - Level 3 inputs are unobservable inputs for the asset or liability and include situations where fair values are measured using valuation techniques based on one or more significant unobservable input.

Classification within the fair value hierarchy is based on whether the lowest hierarchical level input that is significant to the fair value measurement is observable. As such, the classification within the fair value hierarchy is dynamic and can be transferred to other hierarchy levels in each reporting period. Transfers between leveling categories are assessed, determined and recognized at the end of each reporting period.

Valuation Control Framework We have established a control framework which is designed to ensure that fair values are either determined or validated by a function independent of the risk-taker. To that end, the ultimate responsibility for the determination of fair values rests with Finance. Finance has established an independent price validation process to ensure that the assets and liabilities measured at fair value are properly stated.

A valuation committee, chaired by the Head of Business Finance of GB&M, meets monthly to review, monitor and discuss significant valuation matters arising from credit and market risks. The committee is responsible for reviewing and approving valuation policies and procedures including any valuation adjustments pertaining to, among other things, independent price verification, market liquidity, unobservable inputs, model uncertainty and counterparty credit risk. All valuation models are reviewed by the valuation committee in terms of model development, enhancements and performance. All models are independently reviewed by the Markets IMR function and applicable valuation model recommendations are reported to and discussed with the valuation committee. Significant valuation risks identified in business activities are corroborated and addressed by the committee members and, where applicable, are escalated to the Chief Financial Officer of HUSI and the Audit Committee of the Board of Directors.

Where fair value measurements are determined based on information obtained from independent pricing services or brokers, Finance applies appropriate validation procedures to substantiate fair value. For price validation purposes, quotations from at least two independent pricing sources are obtained for each financial instrument, where possible.

The following factors are considered in determining fair values:

▪ similarities between the asset or the liability under consideration and the asset or liability for which quotation is received;

▪ collaboration of pricing by referencing to other independent market data such as market transactions and relevant benchmark indices;

▪ consistency among different pricing sources;

▪ the valuation approach and the methodologies used by the independent pricing sources in determining fair value;

▪ the elapsed time between the date to which the market data relates and the measurement date;

▪ the source of the fair value information; and

▪ whether the security is traded in an active or inactive market.

Greater weight is given to quotations of instruments with recent market transactions, pricing quotes from dealers who stand ready to transact, quotations provided by market-makers who structured such instrument and market consensus pricing based on inputs from a large number of survey participants. Any significant discrepancies among the external quotations are reviewed and adjustments to fair values are recorded where appropriate. Where the transaction volume of a specific instrument has been reduced and the fair value measurement becomes less transparent, Finance will apply more detailed procedures to understand and challenge the appropriateness of the unobservable inputs and the valuation techniques used by the independent pricing service. Where applicable, Finance will develop a fair value estimate using its own pricing model inputs to test reasonableness. Where fair value measurements are determined using internal valuation models, Finance will validate the fair value measurement by either developing unobservable inputs based on the industry consensus pricing surveys in which we participate or back testing by observing the actual settlements occurring soon after the measurement date. Any significant valuation adjustments are reported to and discussed with the valuation committee.

Fair Value of Financial Instruments  The fair value estimates, methods and assumptions set forth below for our financial instruments, including those financial instruments carried at cost, are made solely to comply with disclosures required by generally accepted accounting principles in the United States and should be read in conjunction with the financial statements and notes included in this report.

The following table summarizes the carrying value and estimated fair value of our financial instruments at March 31, 2015 and December 31, 2014:

March 31, 2015	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Short-term financial assets	$	33,260	$	33,260	$	972	$	32,249	$	39
Federal funds sold and securities purchased under resale agreements	6,965		6,965		—		6,965		—
Non-derivative trading assets	15,938		15,938		2,912		9,925		3,101
Derivatives	8,403		8,403		8		8,350		45
Securities	47,111		47,446		25,141		22,305		—
Commercial loans, net of allowance for credit losses	61,113		62,494		—		—		62,494
Commercial loans designated under fair value option and held for sale	255		255		—		255		—
Commercial loans held for sale	36		36		—		36		—
Consumer loans, net of allowance for credit losses	19,642		18,143		—		—		18,143
Consumer loans held for sale:
Residential mortgages	24		25		—		20		5
Other consumer	90		90		—		—		90
Financial liabilities:
Short-term financial liabilities	$	15,710	$	15,710	$	—	$	15,671	$	39
Deposits:
Without fixed maturities	109,625		109,625		—		109,625		—
Fixed maturities	2,521		2,524		—		2,524		—
Deposits designated under fair value option	6,948		6,948		—		5,022		1,926
Non-derivative trading liabilities	646		646		477		169		—
Derivatives	11,846		11,846		19		11,798		29
Long-term debt	20,387		21,259		—		21,259		—
Long-term debt designated under fair value option	9,033		9,033		—		8,391		642

December 31, 2014	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Short-term financial assets	$	31,746	$	31,746	$	891	$	30,807	$	48
Federal funds sold and securities purchased under resale agreements	1,413		1,413		—		1,413		—
Non-derivative trading assets	15,490		15,490		2,675		9,722		3,093
Derivatives	7,258		7,258		10		7,200		48
Securities	43,609		43,835		22,048		21,787		—
Commercial loans, net of allowance for credit losses	57,595		58,891		—		—		58,891
Commercial loans designated under fair value option and held for sale	384		384		—		384		—
Commercial loans held for sale	144		144		—		144		—
Consumer loans, net of allowance for credit losses	19,466		17,896		—		—		17,896
Consumer loans held for sale:
Residential mortgages	18		19		—		14		5
Other consumer	66		66		—		—		66
Financial liabilities:
Short-term financial liabilities	$	12,861	$	12,861	$	—	$	12,813	$	48
Deposits:
Without fixed maturities	105,962		105,962		—		105,962		—
Fixed maturities	2,810		2,813		—		2,813		—
Deposits designated under fair value option	7,346		7,346		—		5,378		1,968
Non-derivative trading liabilities	705		705		653		52		—
Derivatives	8,413		8,413		8		8,376		29
Long-term debt	18,733		19,524		—		19,524		—
Long-term debt designated under fair value option	8,791		8,791		—		8,144		647

Loan values presented in the table above were determined using the Fair Value Framework for measuring fair value, which is based on our best estimate of the amount within a range of value we believe would be received in a sale as of the balance sheet date (i.e. exit price). The secondary market demand and estimated value for our residential mortgage loans has been heavily influenced by the challenging economic conditions during the past several years, including house price depreciation, elevated unemployment, changes in consumer behavior, changes in discount rates and the lack of financing options available to support the purchase of receivables. For certain consumer loans, investors incorporate numerous assumptions in predicting cash flows, such as future interest rates, higher charge-off levels, slower voluntary prepayment speeds, different default and loss curves and estimated collateral values than we, as the servicer of these loans, believe will ultimately be the case. The investor's valuation process reflects this difference in overall cost of capital assumptions as well as the potential volatility in the underlying cash flow assumptions, the combination of which may yield a significant pricing discount from our intrinsic value. The estimated fair values at March 31, 2015 and December 31, 2014 reflect these market conditions. The increase in the relative fair value of our residential mortgage loans since December 31, 2014 reflects the conditions in the housing industry which have continued to show improvement in 2015 due to improvements in property values as well as lower required market yields and increased investor demand for these types of receivables.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis  The following table presents information about our assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value:

	Fair Value Measurements on a Recurring Basis
March 31, 2015	Level 1		Level 2		Level 3		Gross Balance		Netting(1)			Net Balance
	(in millions)
Assets:
Trading Securities, excluding derivatives:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	$	2,912	$	107	$	—	$	3,019	$	—		$	3,019
Obligations of U.S. States and political subdivisions	—		586		—		586		—			586
Collateralized debt obligations	—		—		253		253		—			253
Asset-backed securities:
Residential mortgages	—		139		—		139		—			139
Student Loans	—		88		—		88		—			88
Corporate and other domestic debt securities	—		—		2,848		2,848		—			2,848
Debt Securities issued by foreign entities:
Corporate	—		183		—		183		—			183
Government-backed	—		5,494		—		5,494		—			5,494
Equity securities	—		18		—		18		—			18
Precious metals trading	—		3,310		—		3,310		—			3,310
Derivatives(2):
Interest rate contracts	32		51,719		21		51,772		—			51,772
Foreign exchange contracts	22		27,735		19		27,776		—			27,776
Equity contracts	—		2,245		165		2,410		—			2,410
Precious metals contracts	33		794		—		827		—			827
Credit contracts	—		4,025		258		4,283		—			4,283
Derivatives netting	—		—		—		—		(78,665		)	(78,665		)
Total derivatives	87		86,518		463		87,068		(78,665		)	8,403
Securities available-for-sale:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	25,141		2,721		—		27,862		—			27,862
Obligations of U.S. states and political subdivisions	—		748		—		748		—			748
Asset-backed securities:
Commercial mortgages	—		29		—		29		—			29
Home equity	—		85		—		85		—			85
Other	—		94		—		94		—			94
Debt Securities issued by foreign entities:
Corporate	—		360		—		360		—			360
Government-backed	—		3,753		—		3,753		—			3,753
Equity securities	—		165		—		165		—			165
Loans(3)	—		255		—		255		—			255
Mortgage servicing rights(4)	—		—		141		141		—			141
Total assets	$	28,140	$	104,653	$	3,705	$	136,498	$	(78,665	)	$	57,833
Liabilities:
Deposits in domestic offices(5)	$	—	$	5,022	$	1,926	$	6,948	$	—		$	6,948
Trading liabilities, excluding derivatives	477		169		—		646		—			646
Derivatives(2):
Interest rate contracts	58		52,183		1		52,242		—			52,242
Foreign exchange contracts	47		26,315		19		26,381		—			26,381
Equity contracts	—		1,603		122		1,725		—			1,725
Precious metals contracts	31		645		—		676		—			676
Credit contracts	—		3,932		66		3,998		—			3,998
Derivatives netting	—		—		—		—		(73,176		)	(73,176		)
Total derivatives	136		84,678		208		85,022		(73,176		)	11,846
Long-term debt(5)	—		8,391		642		9,033		—			9,033
Total liabilities	$	613	$	98,260	$	2,776	$	101,649	$	(73,176	)	$	28,473

	Fair Value Measurements on a Recurring Basis
December 31, 2014	Level 1		Level 2		Level 3		Gross Balance		Netting(1)			Net Balance
	(in millions)
Assets:
Trading Securities, excluding derivatives:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	$	2,675	$	48	$	—	$	2,723	$	—		$	2,723
Obligations of U. S. States and political subdivisions	—		591		—		591		—			591
Collateralized debt obligations	—		—		253		253		—			253
Asset-backed securities:
Residential mortgages	—		142		—		142		—			142
Student loans	—		86		—		86		—			86
Corporate and other domestic debt securities	—		1		2,840		2,841		—			2,841
Debt Securities issued by foreign entities:
Corporate	—		184		—		184		—			184
Government-backed	—		6,656		—		6,656		—			6,656
Equity securities	—		22		—		22		—			22
Precious metals trading	—		1,992		—		1,992		—			1,992
Derivatives(2):
Interest rate contracts	46		46,012		1		46,059		—			46,059
Foreign exchange contracts	—		22,241		23		22,264		—			22,264
Equity contracts	—		2,212		180		2,392		—			2,392
Precious metals contracts	59		1,013		—		1,072		—			1,072
Credit contracts	—		3,899		296		4,195		—			4,195
Derivatives netting	—		—		—		—		(68,724		)	(68,724		)
Total derivatives	105		75,377		500		75,982		(68,724		)	7,258
Securities available-for-sale:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	22,048		3,117		—		25,165		—			25,165
Obligations of U.S. states and political subdivisions	—		667		—		667		—			667
Asset-backed securities:
Commercial mortgages	—		43		—		43		—			43
Home equity	—		89		—		89		—			89
Other	—		94		—		94		—			94
Debt Securities issued by foreign entities:
Corporate	—		517		—		517		—			517
Government-backed	—		3,398		—		3,398		—			3,398
Equity securities	—		167		—		167		—			167
Loans(3)	—		384		—		384		—			384
Mortgage servicing rights(4)	—		—		159		159		—			159
Total assets	$	24,828	$	93,575	$	3,752	$	122,155	$	(68,724	)	$	53,431
Liabilities:
Deposits in domestic offices(5)	$	—	$	5,378	$	1,968	$	7,346	$	—		$	7,346
Trading liabilities, excluding derivatives	653		52		—		705		—			705
Derivatives(2):
Interest rate contracts	43		46,683		1		46,727		—			46,727
Foreign exchange contracts	13		20,847		23		20,883		—			20,883
Equity contracts	—		1,661		138		1,799		—			1,799
Precious metals contracts	18		596		—		614		—			614
Credit contracts	—		3,941		86		4,027		—			4,027
Derivatives netting	—		—		—		—		(65,637		)	(65,637		)
Total derivatives	74		73,728		248		74,050		(65,637		)	8,413
Long-term debt(5)	—		8,144		647		8,791		—			8,791
Total liabilities	$	727	$	87,302	$	2,863	$	90,892	$	(65,637	)	$	25,255

⁽¹⁾  Represents counterparty and cash collateral netting which allow the offsetting of amounts relating to certain contracts if certain conditions are met.

⁽²⁾  Includes trading derivative assets of $6,506 million and $5,602 million and trading derivative liabilities of $10,642 million and $7,459 million as of March 31, 2015 and December 31, 2014, respectively, as well as derivatives held for hedging and commitments accounted for as derivatives.

⁽³⁾  Includes certain commercial loans held for sale which we have elected to apply the fair value option. See Note 6, "Loans Held for Sale," for further information.

⁽⁴⁾  See Note 7, "Intangible Assets," for additional information.

⁽⁵⁾  See Note 10, "Fair Value Option," for additional information.

Transfers between levels of the fair value hierarchy are recognized at the end of each reporting period.

Transfers between Levels 1 and 2 measurements  There were no transfers between Levels 1 and 2 during the three months ended March 31, 2015 and 2014.

Information on Level 3 assets and liabilities  The following table summarizes additional information about changes in the fair value of Level 3 assets and liabilities during the three months ended March 31, 2015 and 2014. As a risk management practice, we may risk manage the Level 3 assets and liabilities, in whole or in part, using securities and derivative positions that are classified as Level 1 or Level 2 measurements within the fair value hierarchy. Since those Level 1 and Level 2 risk management positions are not included in the table below, the information provided does not reflect the effect of such risk management activities related to the Level 3 assets and liabilities.

	Jan. 1, 2015			Total Gains and  (Losses) Included in(1)						Purch- ases		Issu- ances			Settle- ments			Transfers Into Level 3		Transfers Out of Level 3			Mar. 31, 2015			Current Period Unrealized Gains (Losses)
				Trading Revenue (Loss)			Other Revenue
	(in millions)
Assets:
Trading assets, excluding derivatives:
Collateralized debt obligations	$	253		$	9		$	—		$	—	$	—		$	(8	)	$	—	$	—		$	254		$	7
Corporate and other domestic debt securities	2,840			—			—			8		—			—			—		—			2,848			—
Derivatives, net(2):
Interest rate contracts	—			19			1			—		—			—			—		—			20			20
Foreign exchange contracts	—			—			—			—		—			—			—		—			—			—
Equity contracts	42			23			—			—		—			(21		)	—		(1		)	43			14
Credit contracts	210			(12		)	—			—		—			(6		)	—		—			192			(40		)
Mortgage servicing rights(3)	159			—			(14		)	—		—			(4		)	—		—			141			(14		)
Total assets	$	3,504		$	39		$	(13	)	$	8	$	—		$	(39	)	$	—	$	(1	)	$	3,498		$	(13	)
Liabilities:
Deposits in domestic offices(4)	$	(1,968	)	$	—		$	(19	)	$	—	$	(89	)	$	49		$	—	$	101		$	(1,926	)	$	(13	)
Long-term debt(4)	(647		)	—			(7		)	—		(87		)	79			—		20			(642		)	(6		)
Total liabilities	$	(2,615	)	$	—		$	(26	)	$	—	$	(176	)	$	128		$	—	$	121		$	(2,568	)	$	(19	)

	Jan. 1, 2014			Total Gains and  (Losses) Included in(1)						Purch- ases		Issu- ances			Settle- ments			Transfers Into Level 3			Transfers Out of Level 3		Mar. 31, 2014			Current Period Unrealized Gains (Losses)
				Trading Revenue (Loss)			Other Revenue
	(in millions)
Assets:
Trading assets, excluding derivatives:
Collateralized debt obligations	$	254		$	7		$	—		$	—	$	—		$	(3	)	$	—		$	—	$	258		$	7
Corporate and other domestic debt securities	2,260			(5		)	—			553		—			—			—			—		2,808			(6		)
Government debt securities issued by foreign entities	121			2			—			—		—			(6		)	—			—		117			(4		)
Derivatives, net(2):
Interest rate contracts	1			—			—			—		—			—			—			—		1			—
Foreign exchange contracts	95			1			—			—		—			(6		)	—			6		96			1
Equity contracts	3			19			—			—		—			(7		)	4			5		24			12
Precious metals contracts	(2		)	2			—			—		—			—			—			—		—			—
Credit contracts	191			(13		)	—			—		—			3			—			—		181			(28		)
Mortgage servicing rights(3)	227			—			(12		)	—		—			(10		)	—			—		205			(12		)
Total assets	$	3,150		$	13		$	(12	)	$	553	$	—		$	(29	)	$	4		$	11	$	3,690		$	(30	)
Liabilities:
Deposits in domestic offices(4)	$	(2,334	)	$	(124	)	$	—		$	—	$	(25	)	$	167		$	(68	)	$	140	$	(2,244	)	$	(23	)
Long-term debt(4)	(900		)	93			—			—		(43		)	47			—			71		(732		)	(2		)
Total liabilities	$	(3,234	)	$	(31	)	$	—		$	—	$	(68	)	$	214		$	(68	)	$	211	$	(2,976	)	$	(25	)

⁽¹⁾  Includes realized and unrealized gains and losses.

⁽²⁾  Level 3 net derivatives included derivative assets of $463 million and derivative liabilities of $208 million as of March 31, 2015 and derivative assets of $694 million and derivative liabilities of $392 million as of March 31, 2014.

⁽³⁾  See Note 7, "Intangible Assets," for additional information.

⁽⁴⁾  See Note 10, "Fair Value Option," for additional information.

The following table presents quantitative information about the unobservable inputs used to determine the recurring fair value measurement of assets and liabilities classified as Level 3 fair value measurements as of March 31, 2015 and December 31, 2014:

March 31, 2015
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Collateralized debt obligations	254		Broker quotes or consensus pricing and, where applicable, discounted cash flows	Prepayment rates	1% - 6%
				Conditional default rates	6% - 7%
				Loss severity rates	90% - 91%
Corporate and other domestic debt securities	2,848		Discounted cash flows	Spread volatility on collateral assets	1% - 4%
				Correlation between insurance claim shortfall and collateral value	80%
Interest rate derivative contracts	20		Market comparable adjusted for probability to fund	Probability to fund for rate lock commitments	6% - 99%
Foreign exchange derivative contracts(1)	—		Option pricing model	Implied volatility of currency pairs	17% - 22%
Equity derivative contracts(1)	43		Option pricing model	Equity / Equity Index volatility	13% - 65%
				Equity / Equity and Equity / Index correlation	47% - 59%
Credit derivative contracts	192		Option pricing model	Correlation of defaults of a portfolio of reference credit names	49% - 52%
				Issuer by issuer correlation of defaults	82% - 83%
Mortgage servicing rights	141		Option adjusted discounted cash flows	Constant prepayment rates	11% - 51%
				Option adjusted spread	8% - 14%
				Estimated annualized costs to service	$91 - $333 per account
Deposits in domestic offices (structured deposits)(1)(2)	(1,926	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	17% - 22%
				Equity / Equity Index volatility	13% - 65%
				Equity / Equity and Equity / Index correlation	47% - 59%
Long-term debt (structured notes)(1)(2)	(642	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	17% - 22%
				Equity / Equity Index volatility	13% - 65%
				Equity / Equity and Equity / Index correlation	47% - 59%

December 31, 2014
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Collateralized debt obligations	253		Broker quotes or consensus pricing and, where applicable, discounted cash flows	Prepayment rates	1% - 6%
				Conditional default rates	6% - 7%
				Loss severity rates	90% - 91%
Corporate and other domestic debt securities	2,840		Discounted cash flows	Spread volatility on collateral assets	2% - 4%
				Correlation between insurance claim shortfall and collateral value	80%
Interest rate derivative contracts	—		Market comparable adjusted for probability to fund	Probability to fund for rate lock commitments	6% - 98%
Foreign exchange derivative contracts(1)	—		Option pricing model	Implied volatility of currency pairs	10% - 17%
Equity derivative contracts(1)	42		Option pricing model	Equity / Equity Index volatility	11% - 60%
				Equity / Equity and Equity / Index correlation	47% - 73%
Credit derivative contracts	210		Option pricing model	Correlation of defaults of a portfolio of reference credit names	52% - 57%
				Issuer by issuer correlation of defaults	82% - 83%
Mortgage servicing rights	159		Option adjusted discounted cash flows	Constant prepayment rates	10% - 49%
				Option adjusted spread	8% - 19%
				Estimated annualized costs to service	$91 - $333 per account
Deposits in domestic offices (structured deposits)(1)(2)	(1,968	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	10% - 17%
				Equity / Equity Index volatility	11% - 60%
				Equity / Equity and Equity / Index correlation	47% - 73%
Long-term debt (structured notes)(1)(2)	(647	)	Option adjusted discounted cash flows	Implied volatility of currency pairs	10% - 17%
				Equity / Equity Index volatility	11% - 60%
				Equity / Equity and Equity / Index correlation	47% - 73%

⁽¹⁾  We are the client-facing entity and we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market neutral. The corresponding intra-group derivatives are presented as equity derivatives and foreign exchange derivatives in the table.

⁽²⁾  Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs.

Significant Unobservable Inputs for Recurring Fair Value Measurements

Collateralized Debt Obligations ("CDOs")

▪ Prepayment rate - The rate at which borrowers pay off the mortgage loans early. The prepayment rate is affected by a number of factors including the location of the mortgage collateral, the interest rate type of the mortgage loans, borrowers' credit and sensitivity to interest rate movement. The prepayment rate of our CDOs portfolio is tilted towards the low end of the range.

▪ Default rate - Annualized percentage of default rate over a group of collateral such as residential or commercial mortgage loans. The default rate and loss severity rate are positively correlated. The default rate of our portfolio is close to the mid-point of the range.

▪ Loss severity rate - Included in our Level 3 CDOs portfolio are collateralized loan obligations (CLOs) and trust preferred securities which are about equally distributed. The loss severity rate for trust preferred securities as of March 31, 2015 is about 1.8 times that of CLOs.

Derivatives

▪ Correlation of default - The default correlation of a group of credit exposures measures the likelihood that the credit references within a group will default together. The default correlation is a significant input to structured credit products such as nth-to-default swaps. In addition, the correlation between the currency and the default risk of the reference credits is a critical input to a foreign currency denominated credit default swap where the correlation is not observable.

▪ Implied volatility - The implied volatility is a significant pricing input for freestanding or embedded options including equity, foreign currency and interest rate options. The level of volatility is a function of the nature of the underlying risk, the level of strike price and the years to maturity of the option. Depending on the underlying risk and tenure, we determine the implied volatility based on observable input where information is available. However, substantially all of the implied volatilities are derived based on historical information. The implied volatility for different foreign currency pairs is between 17 percent and 22 percent while the implied volatility for equity/equity or equity/equity index is between 13 percent and 65 percent, respectively at March 31, 2015. Although implied foreign currency volatility and equity volatility appear to be widely distributed at the portfolio level, the deviation of implied volatility on a trade-by-trade basis is narrower. The average deviation of implied volatility for the foreign currency pair and at-the-money equity option are 7 percent and 6 percent, respectively at March 31, 2015.

▪ Correlations of a group of foreign currency or equity - Correlation measures the relative change in values among two or more variables (i.e., equity or foreign currency pair). Variables can be positively or negatively correlated. Correlation is a key input in determining the fair value of a derivative referenced to a basket of variables such as equities or foreign currencies. A majority of the correlations are not observable, but are derived based on historical data. The correlation between equity/equity and equity/equity index was between 47 percent and 59 percent at March 31, 2015.

Sensitivity of Level 3 Inputs to Fair Value Measurements

Collateralized debt obligations - Probability of default, prepayment speed and loss severity rate are significant unobservable inputs. Significant increase (decrease) in these inputs will result in a lower (higher) fair value measurement of a collateralized debt obligation. A change in assumption for default probability is often accompanied by a directionally similar change in loss severity, and a directionally opposite change in prepayment speed.

Corporate and domestic debt securities - The fair value measurements of certain corporate debt securities are affected by the fair value of the underlying portfolios of investments used as collateral and the make-whole guarantee provided by third party guarantors. The probability that the collateral fair value declines below the collateral call threshold concurrent with the guarantors failure to perform its make whole obligation is unobservable. The increase (decrease) in the probability the collateral value falls below the collateral call threshold is often accompanied by a directionally similar change in default probability of the guarantor.

Credit derivatives - Correlation of default among a basket of reference credit names is a significant unobservable input if the credit attributes of the portfolio are not within the parameters of relevant standardized CDS indices. Significant increase (decrease) in the unobservable input will result in a lower (higher) fair value measurement of the credit derivative. A change in assumption for default correlation is often accompanied by a directionally similar change in default probability and loss rates of other credit names in the basket.

Equity and foreign exchange derivatives - The fair value measurement of a structured equity or foreign exchange derivative is primarily affected by the implied volatility of the underlying equity price or exchange rate of the paired foreign currencies. The implied volatility is not observable. Significant increase (decrease) in the implied volatility will result in a higher (lower) fair value of a long position in the derivative contract.

Significant Transfers Into and Out of Level 3 Measurements During the three months ended March 31, 2015, we transferred $101 million of deposits in domestic offices and $20 million of long-term debt, which we have elected to carry at fair value, from Level 3 to Level 2 as a result of the embedded derivative no longer being unobservable as the derivative option is closer to maturity and there is more observability in short term volatility.

During the three months ended March 31, 2014, we transferred $140 million of deposits in domestic offices and $71 million of long-term debt, which we have elected to carry at fair value, from Level 3 to Level 2 as a result of the embedded derivative no longer being unobservable as the derivative option is closer in maturity and there is more observability in short term volatility. Additionally, during the three months ended March 31, 2014, we transferred $68 million of deposits in domestic offices, which we have elected to carry at fair value, from Level 2 to Level 3 as a result of a change in the observability of underlying instruments that resulted in the embedded derivative being unobservable.

Assets and Liabilities Recorded at Fair Value on a Non-recurring Basis  Certain financial and non-financial assets are measured at fair value on a non-recurring basis and therefore, are not included in the tables above. These assets include (a) mortgage and commercial loans classified as held for sale reported at the lower of amortized cost or fair value and (b) impaired loans or assets that are written down to fair value based on the valuation of underlying collateral during the period. These instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustment in certain circumstances (e.g., impairment). The following table presents the fair value hierarchy level within which the fair value of the financial and non-financial assets has been recorded as of March 31, 2015 and December 31, 2014. The gains (losses) during the three months ended March 31, 2015 and 2014 are also included.

	Non-Recurring Fair Value Measurements as of March 31, 2015								Total Gains (Losses) For the Three Months Ended March 31, 2015
	Level 1		Level 2		Level 3		Total
	(in millions)
Residential mortgage loans held for sale(1)	$	—	$	1	$	5	$	6	$	—
Consumer loans(2)	—		37		—		37		(10		)
Commercial loans held for sale(3)	—		35		—		35		(8		)
Impaired commercial loans(4)	—		—		48		48		—
Real estate owned(5)	—		22		—		22		1
Total assets at fair value on a non-recurring basis	$	—	$	95	$	53	$	148	$	(17	)

	Non-Recurring Fair Value Measurements as of December 31, 2014								Total Gains (Losses) For the Three Months Ended March 31, 2014
	Level 1		Level 2		Level 3		Total
	(in millions)
Residential mortgage loans held for sale(1)	$	—	$	—	$	5	$	5	$	3
Consumer loans(2)	—		164		—		164		(15		)
Commercial loans held for sale(3)	—		77		—		77		—
Impaired commercial loans(4)	—		—		53		53		(6		)
Real estate owned(5)	—		19		—		19		1
Total assets at fair value on a non-recurring basis	$	—	$	260	$	58	$	318	$	(17	)

⁽¹⁾  As of March 31, 2015 and December 31, 2014, the fair value of the loans held for sale was below cost. Certain residential mortgage loans held for sale have been classified as a Level 3 fair value measurement within the fair value hierarchy as the underlying real estate properties which determine fair value are illiquid assets as a result of market conditions and significant inputs in estimating fair value were unobservable. Additionally, the fair value of these properties is affected by, among other things, the location, the payment history and the completeness of the loan documentation.

⁽²⁾  Represents residential mortgage loans held for investment whose carrying amount was reduced during the periods presented based on the fair value of the underlying collateral.

⁽³⁾  As of March 31, 2015 and December 31, 2014, the fair value of the loans held for sale was below cost.

⁽⁴⁾  Certain commercial loans have undergone troubled debt restructurings and are considered impaired. As a matter of practical expedient, we measure the credit impairment of a collateral-dependent loan based on the fair value of the collateral asset. The collateral often involves real estate properties that are illiquid due to market conditions. As a result, these loans are classified as a Level 3 fair value measurement within the fair value hierarchy.

⁽⁵⁾  Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value unadjusted for transaction costs.

The following tables present quantitative information about non-recurring fair value measurements of assets and liabilities classified with Level 3 of the fair value hierarchy as of March 31, 2015 and December 31, 2014:

As of March 31, 2015
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Residential mortgage loans held for sale	$	5	Valuation of third party appraisal on underlying collateral	Loss severity rates	0% - 100%
Impaired commercial loans	48		Valuation of third party appraisal on underlying collateral	Loss severity rates	17% - 40%

As of December 31, 2014
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs
Residential mortgage loans held for sale	$	5	Valuation of third party appraisal on underlying collateral	Loss severity rates	0% - 100%
Impaired commercial loans	53		Valuation of third party appraisal on underlying collateral	Loss severity rates	8% - 47%

Significant Unobservable Inputs for Non-Recurring Fair Value Measurements

Residential mortgage loans held for sale primarily represent subprime residential mortgage loans which were previously acquired with the intent of securitizing or selling them to third parties. The weighted average loss severity rate for these loans was approximately 68 percent at March 31, 2015. These severity rates are primarily impacted by the value of the underlying collateral securing the loans.

Impaired loans represent commercial loans. The weighted average severity rate for these loans was approximately 32 percent at March 31, 2015. These severity rates are primarily impacted by the value of the underlying collateral securing the loans.

Valuation Techniques  Following is a description of valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for those financial instruments not recorded at fair value for which fair value disclosure is required.

Short-term financial assets and liabilities - The carrying amount of certain financial assets and liabilities recorded at cost is considered to approximate fair value because they are short-term in nature, bear interest rates that approximate market rates, and generally have negligible credit risk. These items include cash and due from banks, interest bearing deposits with banks, customer acceptance assets and liabilities, short-term borrowings and dividends payable.

Federal funds sold and purchased and securities purchased and sold under resale and repurchase agreements - Federal funds sold and purchased and securities purchased and sold under resale and repurchase agreements are recorded at cost. A significant majority of these transactions are short-term in nature and, as such, the recorded amounts approximate fair value. For transactions with long-dated maturities, fair value is based on dealer quotes for instruments with similar terms and collateral.

Loans - Except for certain commercial loans held for sale for which the fair value option has been elected, we do not record loans at fair value on a recurring basis. From time to time, we record impairments to loans. The write-downs can be based on observable market price of the loan, the underlying collateral value or a discounted cash flow analysis. In addition, fair value estimates are determined based on the product type, financial characteristics, pricing features and maturity.

• Loans held for sale – Certain residential mortgage whole loans, consumer receivables and commercial loans are recorded at the lower of amortized cost or fair value. Where available, we measure held for sale mortgage whole loans based on transaction prices of loan portfolios of similar characteristics observed in the whole loan market. Adjustments are made to reflect differences in collateral location, loan-to-value ratio, FICO scores, vintage year, default rates, the completeness of the loan documentationand other risk characteristics. The fair value estimates of consumer receivables and commercial loans are determined primarily using the discounted cash flow method with estimated inputs in prepayment rates, default rates, loss severity, and market rate of return.

• Commercial loans held for sale designated under FVO – We record certain commercial loans held for sale at fair value. Where available, fair value is based on observable market consensus pricing obtained from independent sources, relevant broker quotes or observed market prices of instruments with similar characteristics. Where observable market parameters are not available, fair value is determined based on contractual cash flows adjusted for estimates of prepayment rates, expected default rates and loss severity discounted at management's estimate of the expected rate of return required by market participants. We also consider loan specific risk mitigating factors such as collateral arrangements in determining the fair value estimate.

• Commercial loans – Commercial loans and commercial real estate loans are valued by discounting the contractual cash flows, adjusted for prepayments and the borrower’s credit risk, using a discount rate that reflects the current rates offered to borrowers of similar credit standing for the remaining term to maturity and, when applicable, our own estimate of liquidity premium.

• Commercial impaired loans – Generally represents collateral dependent commercial loans with fair value determined based on pricing quotes obtained from an independent third party appraisal.

• Consumer loans – The estimated fair value of our consumer loans were determined by developing an approximate range of value from a mix of various sources as appropriate for the respective pool of assets. These sources included estimates from an HSBC affiliate which reflect over-the-counter trading activity, forward looking discounted cash flow models using assumptions consistent with those which would be used by market participants in valuing such receivables; trading input from other market participants which includes observed primary and secondary trades; where appropriate, the impact of current estimated rating agency credit tranching levels with the associated benchmark credit spreads; and general discussions held directly with potential investors. For revolving products, the estimated fair value excludes future draws on the available credit line as well as other items and, therefore, does not include the fair value of the entire relationship.

Valuation inputs include estimates of future interest rates, prepayment speeds, default and loss curves, estimated collateral value and market discount rates reflecting management’s estimate of the rate that would be required by investors in the current market given the specific characteristics and inherent credit risk of the receivables. Some of these inputs are influenced by collateral value changes and unemployment rates. Where available, such inputs are derived principally from or corroborated by observable market data. We perform analytical reviews of fair value changes on a quarterly basis and periodically validate our valuation methodologies and assumptions based on the results of actual sales of such receivables. In addition, from time to time, we may engage a third party valuation specialist to measure the fair value of a pool of receivables. Portfolio risk management personnel provide further validation through discussions with third party brokers and other market participants. Since an active market for these receivables does not exist, the fair value measurement process uses unobservable significant inputs specific to the performance characteristics of the various receivable portfolios.

Lending-related commitments - The fair value of commitments to extend credit, standby letters of credit and financial guarantees are not included in the table. The majority of the lending related commitments are not carried at fair value on a recurring basis nor are they actively traded. These instruments generate fees, which approximate those currently charged to originate similar commitments, which are recognized over the term of the commitment period. Deferred fees on commitments and standby letters of credit totaled $52 million and $50 million at March 31, 2015 and December 31, 2014, respectively.

Precious metals trading - Precious metals trading primarily includes physical inventory which is valued using spot prices.

Securities - Where available, debt and equity securities are valued based on quoted market prices. If a quoted market price for the identical security is not available, the security is valued based on quotes from similar securities, where possible. For certain securities, internally developed valuation models are used to determine fair values or validate quotes obtained from pricing services. The following summarizes the valuation methodology used for our major security classes:

• U.S. Treasury, U.S. Government agency issued or guaranteed and obligations of U.S. state and political subdivisions – As these securities transact in an active market, fair value measurements are based on quoted prices for the identical security or quoted prices for similar securities with adjustments as necessary made using observable inputs which are market corroborated.

• U.S. Government sponsored enterprises – For government sponsored mortgage-backed securities which transact in an active market, fair value measurements are based on quoted prices for the identical security or quoted prices for similar securities with adjustments as necessary made using observable inputs which are market corroborated. For government sponsored mortgage-backed securities which do not transact in an active market, fair value is determined primarily based on pricing information obtained from pricing services and is verified by internal review processes.

• Asset-backed securities, including collateralized debt obligations – Fair value is primarily determined based on pricing information obtained from independent pricing services adjusted for the characteristics and the performance of the underlying collateral.

The following tables provide additional information relating to asset-backed securities as well as certain collateralized debt obligations held as of March 31, 2015:

Trading asset-backed securities:

Rating of Securities:(1)	Collateral Type:	Level 2		Level 3		Total
		(in millions)
AAA -A	Residential mortgages - Alt A	$	80	$	—	$	80
	Residential mortgages - Subprime	53		—		53
	Student loans	88		—		88
	Total AAA -A	221		—		221
BBB -B	Collateralized debt obligations	—		253		253
CCC-Unrated	Residential mortgages - Subprime	6		—		6
		$	227	$	253	$	480

Available-for-sale securities backed by collateral:

Rating of Securities:(1)	Collateral Type:	Level 2		Level 3		Total
		(in millions)
AAA -A	Commercial mortgages	$	29	$	—	$	29
	Home equity - Alt A	85		—		85
	Other	94		—		94
	Total AAA -A	$	208	$	—	$	208

⁽¹⁾   We utilize S&P as the primary source of credit ratings in the tables above. If S&P ratings are not available, ratings by Moody's and Fitch are used in that order. Ratings for collateralized debt obligations represent the ratings associated with the underlying collateral.

• Other domestic debt and foreign debt securities (corporate and government) - For non-callable corporate securities, a credit spread scale is created for each issuer. These spreads are then added to the equivalent maturity U.S. Treasury yield to determine current pricing. Credit spreads are obtained from the new market, secondary trading levels and dealer quotes. For securities with early redemption features, an option adjusted spread ("OAS") model is incorporated to adjust the spreads determined above. Additionally, we survey the broker/dealer community to obtain relevant trade data including benchmark quotes and updated spreads.

• Equity securities – Except for those legacy investments in hedge funds, since most of our securities are transacted in active markets, fair value measurements are determined based on quoted prices for the identical security. For hedge fund investments, we receive monthly statements from the investment manager with the estimated fair value.

Derivatives – Derivatives are recorded at fair value. Asset and liability positions in individual derivatives that are covered by legally enforceable master netting agreements, including receivables (payables) for cash collateral posted (received), are offset and presented net in accordance with accounting principles which allow the offsetting of amounts.

Derivatives traded on an exchange are valued using quoted prices. OTC derivatives, which comprise a majority of derivative contract positions, are valued using valuation techniques. The fair value for the majority of our derivative instruments are determined based on internally developed models that utilize independently corroborated market parameters, including interest rate yield curves, option volatilities, and currency rates. For complex or long-dated derivative products where market data is not available, fair value may be affected by the underlying assumptions about, among other things, the timing of cash flows, expected exposure, probability of default and recovery rates. The fair values of certain structured derivative products are sensitive to unobservable inputs such as default correlations of the referenced credit and volatilities of embedded options. These estimates are susceptible to significant change in future periods as market conditions change.

We use the OIS curves as inputs to measure the fair value of collateralized derivatives. Historically, we valued uncollateralized derivatives by discounting expected future cash flows at a benchmark interest rate, typically LIBOR or its equivalent. In line with evolving industry practice, we changed this approach during 2014. We now view the OIS curve as the base discounting curve for all derivatives, both collateralized and uncollateralized, and have adopted a FFVA to reflect the estimated present value of the future market funding cost or benefit associated with funding uncollateralized derivative exposure at rates other than the OIS rate. This is an area in which a full industry consensus has not yet emerged. We will continue to monitor industry evolution and refine the calculation methodology as necessary.

Significant inputs related to derivative classes are broken down as follows:

• Credit Derivatives – Use credit default curves and recovery rates which are generally provided by broker quotes and various pricing services. Certain credit derivatives may also use correlation inputs in their model valuation. Correlation is derived using market quotes from brokers and various pricing services.

• Interest Rate Derivatives – Swaps use interest rate curves based on currency that are actively quoted by brokers and other pricing services. Options will also use volatility inputs which are also quoted in the broker market.

• Foreign Exchange ("FX") Derivatives – FX transactions, to the extent possible, use spot and forward FX rates which are quoted in the broker market. Where applicable, we also use implied volatility of currency pairs as inputs.

• Equity Derivatives – Use listed equity security pricing and implied volatilities from equity traded options position.

• Precious Metal Derivatives – Use spot and forward metal rates which are quoted in the broker market.

As discussed earlier, we make fair value adjustments to model valuations in order to ensure that those values represent appropriate estimates of fair value. These adjustments, which are applied consistently over time, are generally required to reflect factors such as bid-ask spreads and counterparty credit risk that can affect prices in arms-length transactions with unrelated third parties. Such adjustments are based on management judgment and may not be observable.

We estimate the counterparty credit risk for financial assets and own credit standing for financial liabilities (the "credit risk adjustments") in determining the fair value measurement. For derivative instruments, we calculate the credit risk adjustment by applying the probability of default of the counterparty to the expected exposure, and multiplying the result by the expected loss given default. We also take into consideration the risk mitigating factors including collateral agreements and master netting arrangements in determining credit risk adjustments. We estimate the implied probability of default based on the credit spread of the specific counterparty observed in the credit default swap market. Where credit default spread of the counterparty is not available, we use the credit default spread of a specific proxy (e.g. the credit default swap spread of the counterparty's parent). Where specific proxy credit default swap is not available, we apply a blended approach based on a combination of credit default swaps referencing to credit names of similar credit standing and the historical rating-based probability of default.

Real estate owned - Fair value is determined based on third party appraisals obtained at the time we take title to the property and, if less than the carrying amount of the loan, the carrying amount of the loan is adjusted to the fair value. The carrying amount of the property is further reduced, if necessary, at least every 45 days to reflect observable local market data, including local area sales data.

Mortgage servicing rights - We elected to measure residential mortgage servicing rights, which are classified as intangible assets, at fair value. The fair value for the residential mortgage servicing rights is determined based on an option adjusted approach which involves discounting servicing cash flows under various interest rate projections at risk-adjusted rates. The valuation model also incorporates our best estimate of the prepayment speed of the mortgage loans, current cost to service and discount rates which are unobservable. As changes in interest rates is a key factor affecting the prepayment speed and hence the fair value of the mortgage servicing rights, we use various interest rate derivatives and forward purchase contracts of mortgage-backed securities to risk-manage the mortgage servicing rights.

Structured notesand deposits – Structured notes and deposits are hybrid instruments containing embedded derivatives and are elected to be measured at fair value in their entirety under fair value option accounting principles. The valuation of hybrid instruments is predominantly driven by the derivative features embedded within the instruments. The valuation of embedded derivatives may include significant unobservable inputs such as correlation of the referenced credit names or volatility of the embedded option.

Cash flows of the funded notes and deposits are discounted at the relevant interest rates for the duration of the instrument adjusted for our own credit spreads. The credit spreads so applied are determined with reference to our own debt issuance rates observed in primary and secondary markets, internal funding rates, and the structured note rates in recent executions.

Long-term debt – We elected to apply fair value option to certain own debt issuances for which fair value hedge accounting otherwise would have been applied. These own debt issuances elected under FVO are traded in secondary markets and, as such, the fair value is determined based on observed prices for the specific instrument. The observed market price of these instruments reflects the effect of our own credit spreads. The credit spreads applied to these instruments were derived from the spreads at the measurement date.

For long-term debt recorded at cost, fair value is determined based on quoted market prices where available. If quoted market prices are not available, fair value is based on dealer quotes, quoted prices of similar instruments, or internally developed valuation models adjusted for own credit risks.

Deposits – For fair value disclosure purposes, the carrying amount of deposits with no stated maturity (e.g., demand, savings, and certain money market deposits), which represents the amount payable upon demand, is considered to generally approximate fair value. For deposits with stated maturities, fair value is estimated by discounting cash flows using market interest rates currently offered on deposits with similar characteristics and maturities.

XML

Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Equity [Abstract]
Tax (benefit) expense included in net unrealized gains (losses)	$ (11)	$ 93
Tax included in reclassification	(9)	(9)
Tax included in amortization	3	0
Tax included in reclassification due to accretion	0	1
Tax (benefit) expense included in net unrealized gains (losses)	(12)	(13)
Tax included in reclassification	1	1
Tax (benefit) included in change in unfunded pension postretirement liability (less than $1 million)	$ 0	$ 0

XML

Securities - Gross unrealized losses and related fair values (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015 security	Dec. 31, 2014 security
Schedule of Available-for-sale Securities [Line Items]
Number of securities available for sale in one year or less	87	79
Securities available-for-sale gross unrealized losses one year or less	$ (89)	$ (80)
Securities available-for-sale aggregate fair value of investment one year or less	8,853	7,745
Number of Securities available for sale greater than one year	61	73
Securities available-for-sale gross unrealized losses greater than one year	(49)	(55)
Securities available-for-sale aggregate fair value of investment greater than one year	1,605	3,441
Number of securities held-to-maturity in one year or less	117	247
Securities held-to-maturity gross unrealized losses one year or less	(3)	(3)
Securities held-to-maturity aggregate fair value of investment one year or less	482	1,379
Securities held-to-maturity greater than one year	821	850
Securities held-to-maturity gross unrealized losses greater than one year	0	0
Securities held-to-maturity aggregate fair value of investment greater than one year	2	3
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of securities available for sale in one year or less	25	6
Securities available-for-sale gross unrealized losses one year or less	(46)	(47)
Securities available-for-sale aggregate fair value of investment one year or less	4,178	3,459
Number of Securities available for sale greater than one year	5	4
Securities available-for-sale gross unrealized losses greater than one year	(10)	(11)
Securities available-for-sale aggregate fair value of investment greater than one year	750	1,546
US Government sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of securities available for sale in one year or less	9	2
Securities available-for-sale gross unrealized losses one year or less	(4)	(1)
Securities available-for-sale aggregate fair value of investment one year or less	352	128
Number of Securities available for sale greater than one year	17	24
Securities available-for-sale gross unrealized losses greater than one year	(3)	(6)
Securities available-for-sale aggregate fair value of investment greater than one year	160	391
Number of securities held-to-maturity in one year or less	15	144
Securities held-to-maturity gross unrealized losses one year or less	(1)	(1)
Securities held-to-maturity aggregate fair value of investment one year or less	172	394
Securities held-to-maturity greater than one year	50	47
Securities held-to-maturity gross unrealized losses greater than one year	0	0
Securities held-to-maturity aggregate fair value of investment greater than one year	0	0
US Government agency issued or guaranteed [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of securities available for sale in one year or less	5	30
Securities available-for-sale gross unrealized losses one year or less	(20)	(20)
Securities available-for-sale aggregate fair value of investment one year or less	889	2,046
Number of Securities available for sale greater than one year	8	10
Securities available-for-sale gross unrealized losses greater than one year	(7)	(9)
Securities available-for-sale aggregate fair value of investment greater than one year	131	213
Number of securities held-to-maturity in one year or less	101	103
Securities held-to-maturity gross unrealized losses one year or less	(2)	(2)
Securities held-to-maturity aggregate fair value of investment one year or less	310	985
Securities held-to-maturity greater than one year	768	800
Securities held-to-maturity gross unrealized losses greater than one year	0	0
Securities held-to-maturity aggregate fair value of investment greater than one year	1	2
Obligations of U.S. states and political subdivision [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of securities available for sale in one year or less	38	34
Securities available-for-sale gross unrealized losses one year or less	(3)	(2)
Securities available-for-sale aggregate fair value of investment one year or less	220	146
Number of Securities available for sale greater than one year	21	23
Securities available-for-sale gross unrealized losses greater than one year	(1)	(2)
Securities available-for-sale aggregate fair value of investment greater than one year	168	194
Number of securities held-to-maturity in one year or less	1	0
Securities held-to-maturity gross unrealized losses one year or less	0	0
Securities held-to-maturity aggregate fair value of investment one year or less	0	0
Securities held-to-maturity greater than one year	3	3
Securities held-to-maturity gross unrealized losses greater than one year	0	0
Securities held-to-maturity aggregate fair value of investment greater than one year	1	1
Asset backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of securities available for sale in one year or less	1	1
Securities available-for-sale gross unrealized losses one year or less	0	0
Securities available-for-sale aggregate fair value of investment one year or less	0	3
Number of Securities available for sale greater than one year	9	9
Securities available-for-sale gross unrealized losses greater than one year	(27)	(24)
Securities available-for-sale aggregate fair value of investment greater than one year	196	199
Foreign debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of securities available for sale in one year or less	8	5
Securities available-for-sale gross unrealized losses one year or less	(16)	(9)
Securities available-for-sale aggregate fair value of investment one year or less	3,055	1,805
Number of Securities available for sale greater than one year	1	3
Securities available-for-sale gross unrealized losses greater than one year	(1)	(3)
Securities available-for-sale aggregate fair value of investment greater than one year	200	898
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of securities available for sale in one year or less	1	1
Securities available-for-sale gross unrealized losses one year or less	0	(1)
Securities available-for-sale aggregate fair value of investment one year or less	159	158
Number of Securities available for sale greater than one year	0	0
Securities available-for-sale gross unrealized losses greater than one year	0	0
Securities available-for-sale aggregate fair value of investment greater than one year	$ 0	$ 0

XML

Variable Interest Entities - Summary of Assets and Liabilities Related to Consolidated Variable Interest Entities (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Variable interest entities [Member]
Variable Interest Entity [Line Items]
Consolidated Assets	$ 372	$ 380
Consolidated Liabilities	178	167
Other assets [Member] | Low income housing limited liability partnership [Member]
Variable Interest Entity [Line Items]
Consolidated Assets	372	380
Long-term debt [Member] | Low income housing limited liability partnership [Member]
Variable Interest Entity [Line Items]
Consolidated Liabilities	92	92
Interest, taxes and other liabilities [Member] | Low income housing limited liability partnership [Member]
Variable Interest Entity [Line Items]
Consolidated Liabilities	$ 86	$ 75

XML

Business Segments (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Summary on Reconciliation of Results under Group Reporting Basis to US GAAP

The following table summarizes the results for each segment on a Group Reporting Basis, as well as provides a reconciliation of total results under the Group Reporting Basis to U.S. GAAP consolidated totals:

	Group Reporting Basis Consolidated Amounts
	RBWM			CMB		GB&M		PB			Other			Adjustments/ Reconciling Items			Total		Group Reporting Basis Adjustments(3)			Group Reporting Basis Reclassi- fications(4)			U.S. GAAP Consolidated Totals
	(in millions)
Three Months Ended March 31, 2015
Net interest income(1)	$	197		$	201	$	118	$	49		$	(6	)	$	(5	)	$	554	$	(14	)	$	66		$	606
Other operating income	87			77		266		24			82			5			541		(10		)	(67		)	464
Total operating income	284			278		384		73			76			—			1,095		(24		)	(1		)	1,070
Loan impairment charges	22			10		8		—			—			—			40		14			(1		)	53
	262			268		376		73			76			—			1,055		(38		)	—			1,017
Operating expenses(2)	281			169		259		58			27			—			794		(17		)	—			777
Profit (loss) before income tax expense	$	(19	)	$	99	$	117	$	15		$	49		$	—		$	261	$	(21	)	$	—		$	240
Balances at end of period:
Total assets	$	19,856		$	30,788	$	198,942	$	8,121		$	804		$	—		$	258,511	$	(56,958	)	$	41		$	201,594
Total loans, net	16,902			29,649		23,341		6,424			—			—			76,316		891			3,548			80,755
Goodwill	581			358		—		325			—			—			1,264		348			—			1,612
Total deposits	29,240			22,209		38,891		10,973			—			—			101,313		(5,975		)	23,756			119,094
Three Months Ended March 31, 2014
Net interest income(1)	$	198		$	187	$	97	$	49		$	(13	)	$	(5	)	$	513	$	(15	)	$	21		$	519
Other operating income	113			68		294		25			25			5			530		(4		)	(26		)	500
Total operating income	311			255		391		74			12			—			1,043		(19		)	(5		)	1,019
Loan impairment charges	2			7		15		(5		)	—			—			19		4			(7		)	16
	309			248		376		79			12			—			1,024		(23		)	2			1,003
Operating expenses(2)	279			158		239		55			25			—			756		(8		)	2			750
Profit (loss) before income tax expense	$	30		$	90	$	137	$	24		$	(13	)	$	—		$	268	$	(15	)	$	—		$	253
Balances at end of period:
Total assets	$	19,143		$	25,594	$	181,545	$	8,231		$	723		$	—		$	235,236	$	(47,888	)	$	(174	)	$	187,174
Total loans, net	16,177			24,509		17,485		6,022			—			—			64,193		1,411			2,719			68,323
Goodwill	581			358		—		325			—			—			1,264		348			—			1,612
Total deposits	30,206			21,254		30,126		12,529			—			—			94,115		(3,247		)	14,663			105,531

⁽¹⁾  Net interest income of each segment represents the difference between actual interest earned on assets and interest paid on liabilities of the segment adjusted for a funding charge or credit. Segments are charged a cost to fund assets (e.g. customer loans) and receive a funding credit for funds provided (e.g. customer deposits) based on equivalent market rates. The objective of these charges/credits is to transfer interest rate risk from the segments to one centralized unit in Balance Sheet Management and more appropriately reflect the profitability of segments.

⁽²⁾  Expenses for the segments include fully apportioned corporate overhead expenses.

⁽³⁾  Represents adjustments associated with differences between the Group Reporting Basis and the U.S. GAAP basis of accounting.

⁽⁴⁾  Represents differences in financial statement presentation between Group Reporting Basis and U.S. GAAP.

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Variable Interest Entities - Additional Information (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Maximum Exposure to Loss	$ 8,622	$ 8,589
Asset-backed commercial paper conduits [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Maximum Exposure to Loss	$ 2,710	$ 2,685

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CONSOLIDATED BALANCE SHEET (UNAUDITED) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Assets:
Cash and due from banks	$ 972		$ 891
Interest bearing deposits with banks	32,249		30,807
Federal funds sold and securities purchased under agreements to resell	6,965		1,413
Trading assets	22,444		21,092
Securities available-for-sale	33,096		30,140
Securities held-to-maturity (fair value of $14.4 billion and $13.7 billion at March 31, 2015 and December 31, 2014, respectively)	14,015		13,469
Loans	81,458		77,741
Less – allowance for credit losses	703		680
Loans, net	80,755		77,061
Loans held for sale (includes $255 million and $384 million designated under fair value option at March 31, 2015 and December 31, 2014, respectively)	405		612
Properties and equipment, net	238		247
Intangible assets, net	186		206
Goodwill	1,612		1,612
Other assets	8,657		7,989
Total assets	201,594	[1]	185,539	[1]
Deposits in domestic offices:
Noninterest bearing	30,598		29,715
Interest bearing (includes $6.9 billion and $7.3 billion designated under fair value option at March 31, 2015 and December 31, 2014, respectively)	75,240		71,191
Deposits in foreign offices:
Noninterest bearing	845		850
Interest bearing	12,411		14,362
Total deposits	119,094		116,118
Short-term borrowings	15,653		12,795
Long-term debt (includes $9.0 billion and $8.8 billion designated under fair value option at March 31, 2015 and December 31, 2014, respectively)	29,420		27,524
Total debt	164,167		156,437
Trading liabilities	11,288		8,164
Interest, taxes and other liabilities	5,068		3,971
Total liabilities	180,523	[1]	168,572	[1]
Shareholders’ equity
Preferred stock	1,565		1,565
Common shareholder’s equity:
Common stock ($5 par; 150,000,000 shares authorized; 714 and 713 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively)	0		0
Additional paid-in capital	18,174		14,170
Retained earnings	1,379		1,233
Accumulated other comprehensive loss	(47)		(1)
Total common shareholders' equity	19,506		15,402
Total shareholders’ equity	21,071		16,967
Total liabilities and shareholders’ equity	$ 201,594		$ 185,539

[1] The following table summarizes assets and liabilities related to our consolidated variable interest entities ("VIEs") as of March 31, 2015 and December 31, 2014 which are consolidated on our balance sheet. Assets and liabilities exclude intercompany balances that eliminate in consolidation. See Note 216, "Variable Interest Entities," for additional information. Assets: Other assets $372 million and $380 million. Total assets $372 million and $380 million respectively. Liabilities: Long-term debt $92 million and $92 million, Interest, taxes and other liabilities $86 million and $75 million. Total liabilities $178 million and $167 million, respectively.

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Derivative Financial Instruments - Gains and Losses on Derivative Instruments Held For Other Purpose (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivatives, Fair Value [Line Items]
Mark-to-market on the related derivatives	$ 388	$ 214
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member]
Derivatives, Fair Value [Line Items]
Mark-to-market on the related derivatives	349	201
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Interest rate contracts [Member]
Derivatives, Fair Value [Line Items]
Mark-to-market on the related derivatives	109	116
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Foreign exchange contracts [Member]
Derivatives, Fair Value [Line Items]
Mark-to-market on the related derivatives	(1)	4
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Equity contracts [Member]
Derivatives, Fair Value [Line Items]
Mark-to-market on the related derivatives	257	81
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Precious metals contracts [Member]
Derivatives, Fair Value [Line Items]
Mark-to-market on the related derivatives	1	16
Gain (Loss) on Instruments Designated at Fair Value and Related Derivatives [Member] | Credit contracts [Member]
Derivatives, Fair Value [Line Items]
Mark-to-market on the related derivatives	0	1
Residential mortgage banking revenue [Member] | Interest rate contracts [Member]
Derivatives, Fair Value [Line Items]
Mark-to-market on the related derivatives	0	0
Other Income [Member] | Credit contracts [Member]
Derivatives, Fair Value [Line Items]
Mark-to-market on the related derivatives	$ 22	$ (4)

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Trading Assets and Liabilities

3 Months Ended

Mar. 31, 2015

Trading Assets And Liabilities [Abstract]

Trading Assets and Liabilities

Trading Assets and Liabilities

Trading assets and liabilities consisted of the following:

	March 31, 2015		December 31, 2014
	(in millions)
Trading assets:
U.S. Treasury	$	2,912	$	2,675
U.S. Government agency issued or guaranteed	4		3
U.S. Government sponsored enterprises(1)	103		45
Obligations of U.S. states and political subdivisions	586		591
Asset backed securities	480		481
Corporate and foreign bonds	8,525		9,681
Other securities	18		22
Precious metals	3,310		1,992
Derivatives, net	6,506		5,602
	$	22,444	$	21,092
Trading liabilities:
Securities sold, not yet purchased	$	646	$	683
Payables for precious metals	—		22
Derivatives, net	10,642		7,459
	$	11,288	$	8,164

⁽¹⁾  Consists of mortgage backed securities of $103 million and $45 million issued or guaranteed by the Federal National Mortgage Association ("FNMA") at March 31, 2015 and December 31, 2014, respectively.

At March 31, 2015 and December 31, 2014, the fair value of derivatives included in trading assets is net of $6,573 million and $4,811 million, respectively, relating to amounts recognized for the obligation to return cash collateral received under master netting agreements with derivative counterparties.

At March 31, 2015 and December 31, 2014, the fair value of derivatives included in trading liabilities is net of $1,084 million and $1,724 million, respectively, relating to amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.

See Note 9, "Derivative Financial Instruments," for further information on our trading derivatives and related collateral.

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Loans - Schedule of Additional Information on Nonaccrual Loans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Receivables [Abstract]
Residential Mortgage Loan Nonaccrual Carried At Lower Of Amortized Cost Or Fair Value Less Cost To Sell	$ 760		$ 817
Interest income that would have been recorded if the nonaccrual receivable had been current in accordance with contractual terms during the period	21	28
Interest income that was recorded on nonaccrual loans and included in interest income during the period	$ 6	$ 8

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Goodwill (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 1,612	$ 1,612	$ 1,612
Accumulated impairment loss	$ 670	$ 670

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Variable Interest Entities - Variable Interests Held by Us and Our Maximum Exposure to Loss Rising From Our Involvements in Those VIEs (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Variable Interest Entity [Line Items]
Variable Interest Held Classified as Assets	$ 2,942	$ 2,914
Variable Interests Held Classified as Liabilities	45	46
Total Assets in Unconsolidated VIEs	16,778	16,992
Maximum Exposure to Loss	8,622	8,589
Asset-backed commercial paper conduits [Member]
Variable Interest Entity [Line Items]
Variable Interest Held Classified as Assets	50	29
Variable Interests Held Classified as Liabilities	0	0
Total Assets in Unconsolidated VIEs	10,761	10,984
Maximum Exposure to Loss	2,710	2,685
Structured note vehicles [Member]
Variable Interest Entity [Line Items]
Variable Interest Held Classified as Assets	2,848	2,841
Variable Interests Held Classified as Liabilities	7	7
Total Assets in Unconsolidated VIEs	5,876	5,867
Maximum Exposure to Loss	5,868	5,860
Low income housing partnerships [Member]
Variable Interest Entity [Line Items]
Variable Interest Held Classified as Assets	44	44
Variable Interests Held Classified as Liabilities	38	39
Total Assets in Unconsolidated VIEs	141	141
Maximum Exposure to Loss	$ 44	$ 44

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Loans - Credit Risk Profile of Commercial Loans (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 81,458		$ 77,741		$ 68,897
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	61,647		58,087
Commercial Loans [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	10,901		10,300		9,165
Commercial Loans [Member] | Business and Corporate Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	19,251		17,819		15,698
Commercial Loans [Member] | Global Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	28,029		26,387		21,979
Commercial Loans [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,466		3,581		3,051
Commercial Loans [Member] | External Credit Rating, Investment Grade [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	42,998	[1]	41,928	[1]
Commercial Loans [Member] | External Credit Rating, Investment Grade [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,314	[1]	7,820	[1]
Commercial Loans [Member] | External Credit Rating, Investment Grade [Member] | Business and Corporate Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,707	[1]	8,835	[1]
Commercial Loans [Member] | External Credit Rating, Investment Grade [Member] | Global Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	23,146	[1]	23,400	[1]
Commercial Loans [Member] | External Credit Rating, Investment Grade [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,831	[1]	1,873	[1]
Commercial Loans [Member] | External Credit Rating, Non Investment Grade [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	18,649		16,159
Commercial Loans [Member] | External Credit Rating, Non Investment Grade [Member] | Construction and Other Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,587		2,480
Commercial Loans [Member] | External Credit Rating, Non Investment Grade [Member] | Business and Corporate Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,544		8,984
Commercial Loans [Member] | External Credit Rating, Non Investment Grade [Member] | Global Banking [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,883		2,987
Commercial Loans [Member] | External Credit Rating, Non Investment Grade [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 1,635		$ 1,708

[1] Investment grade includes commercial loans with credit ratings of at least BBB- or above or the equivalent based on our internal credit rating system.

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Litigation and Regulatory Matters

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Litigation and Regulatory Matters

Litigation and Regulatory Matters

The following supplements, and should be read together with, the disclosure in Note 28, "Litigation and Regulatory Matters," in our 2014 Form 10-K. Only those matters with significant updates and new matters since our disclosure in our 2014 Form 10-K are reported herein.

In addition to the matters described below, and in our 2014 Form 10-Ks, in the ordinary course of business, we are routinely named as defendants in, or as parties to, various legal actions and proceedings relating to activities of our current and/or former operations. These legal actions and proceedings may include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive relief. In the ordinary course of business, we also are subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. In connection with formal and informal inquiries by these regulators, we receive numerous requests, subpoenas and orders seeking documents, testimony and other information in connection with various aspects of our regulated activities.

In view of the inherent unpredictability of litigation and regulatory matters, particularly where the damages sought are substantial or indeterminate or when the proceedings or investigations are in the early stages, we cannot determine with any degree of certainty the timing or ultimate resolution of litigation and regulatory matters or the eventual loss, fines, penalties or business impact, if any, that may result. We establish reserves for litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. Once established, reserves are adjusted from time to time, as appropriate, in light of additional information. The actual costs of resolving litigation and regulatory matters, however, may be substantially higher than the amounts reserved for those matters.

For the litigation and governmental and regulatory matters disclosed below and inNote 28, "Litigation and Regulatory Matters," in our 2014 Form 10-K as to which a loss in excess of accrued liability is reasonably possible in future periods and for which there is sufficient currently available information on the basis of which management believes it can make a reliable estimate, we believe a reasonable estimate could be as much as $60 million for HUSI and its U.S. affiliates. The litigation and governmental and regulatory matters underlying this estimate of possible loss will change from time to time and actual results may differ significantly from this current estimate.

Based on the facts currently known, in respect of each of the below investigations, it is not practicable at this time for us to determine the terms on which these ongoing investigations will be resolved or the timing of such resolution or for us to estimate reliably the amounts, or range of possible amounts, of any fines and/or penalties. As matters progress, it is possible that any fines and/or penalties could be significant.

Given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could have a material adverse effect on our consolidated financial statements in any particular quarterly or annual period.

Credit Card Litigation  In the Speedy Stop Food Stores LLC v. Visa Inc. (Tex. Dist. Ct., Victoria City, No. 13-10-75377-A) case, the court granted plaintiff’s motion for partial summary judgment on the issue of whether plaintiff has antitrust standing and denied defendants’ motion for partial summary judgment on the same issue in April 2015. Discovery is proceeding.

Salveson v. JPMorgan Chase et al. (N.D.Cal. No. 13-CV-5816) The motion for reconsideration of the court’s order granting defendants’ motion to dismiss is fully briefed, and we await a decision from the court.

Checking Account Overdraft Litigation In March 2015, plaintiffs in the state court action (Ofra Levin et al v. HSBC Bank USA, N.A. et al. (N.Y. Sup. Ct. 650562/11) (“State Action”)) filed papers in support of an agreement reached with HSBC Bank USA to settle the claims on a class wide basis for $30 million. The settlement is subject to court approval. The court has scheduled a preliminary approval hearing for July 7, 2015, at which time the court will also consider the federal plaintiffs' motion to intervene in the action.

In the federal court multidistrict litigation (In re HSBC Bank, USA, N.A. Debit Card Overdraft Fee Litigation (E.D.N.Y. 2:13-MD-02451)), HSBC Bank USA filed a motion to stay the federal court action given the settlement in the State Action. Plaintiffs opposed the motion and filed a cross-motion for injunctive relief seeking to prevent the settlement in the State Action from proceeding. In April 2015, the court issued an order denying plaintiffs’ motion for an injunction and granting, in part, HSBC Bank USA’s motion for a stay. The court ruled that discovery may proceed but that the pending motion for class certification would be held in abeyance pending proceedings in the State Action regarding approval of the settlement.

DeKalb County, et al. v. HSBC North America Holdings Inc., et al. In March 2015, the court denied the HSBC defendants’ motion for summary judgment.

Lender-Placed Insurance Matters In April 2015, the court granted preliminary approval of the settlement reached by the parties in the Weller, et al. v. HSBC Mortgage Services, Inc., et al. (D. Col. No. 13-CV-00185) putative class action regarding lender placed flood insurance. Under the agreement, HSBC agreed to pay $1.8 million inclusive of claims, attorneys’ fees and administrative costs. The court has scheduled a final settlement approval hearing for October 2015.

Private Mortgage Insurance Matters The court denied the HSBC defendants’ motion for summary judgment, without prejudice.

People of the State of New York v. HSBC Bank USA, National Association and HSBC Mortgage Corporation (USA) On March 30, 2015, the court granted HSBC Mortgage Corporation’s ("HSBC Mortgage") motion for summary judgment and dismissed the New York Attorney General’s (“AG”) Petition. The AG may appeal the court’s decision.

Precious Metals Fix Matters

In re Commodity Exchange Inc., Gold Futures and Options Trading Litigation (Gold Fix Litigation) A second consolidated amended complaint was filed in March 2015, and defendants must file their consolidated response thereto on April 30, 2015.

In re London Silver Fixing, Ltd. Antitrust Litigation (Silver Fix Litigation) Defendants filed a consolidated response to the consolidated amended complaint in March 2015. Plaintiffs filed a second amended complaint in response to the motion in April 2015.

Platinum and Palladium Fix Litigation Plaintiffs filed a consolidated amended complaint in April 2015. Defendants’ consolidated response thereto is due in June 2015.

Madoff Litigation

In December 2008, Bernard L. Madoff ("Madoff") was arrested and ultimately pleaded guilty to running a Ponzi scheme and a trustee was appointed for the liquidation of his firm, Bernard L. Madoff Investment Securities LLC ("Madoff Securities"), an SEC-registered broker-dealer and investment adviser. Various non-U.S. HSBC companies provided custodial, administration and similar services to a number of funds incorporated outside the United States whose assets were invested with Madoff Securities. Plaintiffs (including funds, funds investors and the Madoff Securities trustee, as described below) have commenced Madoff-related proceedings against numerous defendants in a multitude of jurisdictions. Various HSBC companies have been named as defendants in suits in the United States, Ireland, Luxembourg and other jurisdictions. Certain suits (which include U.S. putative class actions) allege that the HSBC defendants knew or should have known of Madoff's fraud and breached various duties to the funds and fund investors.

In March 2015, the U.S. Supreme Court denied the Herald and Thema plaintiffs’ petition for writ ofcertiorari in the In re Herald, Primeo and Thema Securities Litigation. The dismissal of the Herald and Thema plaintiffs’ claims on grounds of forum non conveniens is now complete.

There are many factors that may affect the range of possible outcomes, and the resulting financial impact, of the various Madoff-related proceedings including, but not limited to, the circumstances of the fraud, the multiple jurisdictions in which proceedings have been brought and the number of different plaintiffs and defendants in such proceedings. For these reasons, among others, we are unable to reasonably estimate the aggregate liability or ranges of liability that might arise as a result of these claims but they could be significant. In any event, we consider that we have good defenses to these claims and will continue to defend them vigorously.

Benchmark Rate Litigation

Defendants’ motions to dismiss the amended complaints filed in individual actions were heard in the first quarter of 2015.

Residential Funding Litigation

In December 2013, Residential Funding Company, LLC (“RFC”) filed an action against HSBC Mortgage in Minnesota state court relating to alleged losses RFC suffered as a result of its purchase of approximately 8,800 mortgage loans from HSBC Mortgage between 1986 and 2007. The action subsequently was removed and transferred to the U.S. District Court for the Southern District of New York (“S.D.N.Y.”) and then referred to the Bankruptcy Court for the S.D.N.Y. for disposition in connection with RFC’s pending bankruptcy action. Residential Funding Co. v. HSBC Mortg. Corp. (USA), Adv. Proc. No. 14-01915(MG). An amended complaint was subsequently filed with Rescap Liquidating Trust, as successor to RFC f/k/a Residential Funding Corporation as the named plaintiff. RFC alleges claims for breach of contract for alleged breach of representations and warranties concerning the quality and characteristics of the mortgage loans and contractual indemnification for alleged losses incurred by RFC arising out of purported defects in loans that RFC purchased from HSBC Mortgage and subsequently sold to third parties. In February 2015, the court granted in part and denied in part HSBC Mortgage’s motion to dismiss. The court dismissed breach of contract claims relating to loans purchased before May 14, 2006 on statute of limitations grounds but allowed other claims to proceed. Discovery is proceeding.

Mortgage Securitization Pool Trust Litigation Additional actions have been filed against HSBC Bank USA in its role as trustee for certain trusts by National Credit Union Administration Board, as liquidating agent, and the Western and Southern Life Insurance Company, et al., in the U.S. District Court for the Southern District of New York and Ohio state court, respectively, alleging that the trusts have sustained losses to collateral. These matters are at very early stages.

Shareholder Derivative Action The nominal corporate defendants (HSBC, HSBC Bank USA, HSBC North America and HSBC USA) filed a motion to dismiss the amended complaint in March 2015. Individual defendants who have been served also responded to the amended complaint.

Charlotte Freeman, et al. v. HSBC Holdings plc, et al.Defendants filed a motion to dismiss in March 2015. In response, plaintiffs filed an amended complaint in April 2015. Motions to dismiss are to be filed in May 2015.

Alfredo Villoldo, et al. v. HSBC Bank USA, N.A., et al. HSBC and HSBC Bank USA filed a motion to dismiss in April 2015.

Other Regulatory and Law Enforcement Investigations 

In November 2014, the Argentine tax authority filed a complaint alleging an unlawful association between HSBC Private Bank Suisse SA, HSBC Bank Argentina and HSBC Bank USA and certain HSBC officers, which allegedly enabled HSBC customers to evade Argentine tax obligations. The Argentine Congress has convened a special committee to investigate the matter and issues related to allegations of evasion of Argentine income taxes broadly. The Committee met on April 1, 2015 and is expected to continue to meet weekly and we are monitoring its proceedings.

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Fair Value Measurements - Carrying Value and Estimated Fair Value of Financial Instruments (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value Of Other Financial Instrument [Line Items]
Derivatives	$ 8,403	$ 7,258
Derivatives	11,846	8,413
Level 1 [Member]
Fair Value Of Other Financial Instrument [Line Items]
Short-term financial assets	972	891
Federal funds sold and securities purchased under resale agreements	0	0
Non-derivative trading assets	2,912	2,675
Derivatives	8	10
Securities	25,141	22,048
Commercial loans, net of allowance for credit losses	0	0
Consumer loans, net of allowance for credit losses	0	0
Short-term financial liabilities	0	0
Deposits designated under fair value option	0	0
Non-derivative trading liabilities	477	653
Derivatives	19	8
Long-term debt	0	0
Long-term debt designated under fair value option	0	0
Level 1 [Member] | Commercial Loans [Member]
Fair Value Of Other Financial Instrument [Line Items]
Commercial loans designated under fair value option and held for sale	0	0
Loans held for sale	0	0
Level 1 [Member] | Consumer Loans [Member] | Residential Mortgage [Member]
Fair Value Of Other Financial Instrument [Line Items]
Loans held for sale	0	0
Level 1 [Member] | Consumer Loans [Member] | Other consumer [Member]
Fair Value Of Other Financial Instrument [Line Items]
Loans held for sale	0	0
Level 1 [Member] | Deposits Without Fixed Maturities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Deposits	0	0
Level 1 [Member] | Deposits With Fixed Maturities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Deposits	0	0
Level 2 [Member]
Fair Value Of Other Financial Instrument [Line Items]
Short-term financial assets	32,249	30,807
Federal funds sold and securities purchased under resale agreements	6,965	1,413
Non-derivative trading assets	9,925	9,722
Derivatives	8,350	7,200
Securities	22,305	21,787
Commercial loans, net of allowance for credit losses	0	0
Consumer loans, net of allowance for credit losses	0	0
Short-term financial liabilities	15,671	12,813
Deposits designated under fair value option	5,022	5,378
Non-derivative trading liabilities	169	52
Derivatives	11,798	8,376
Long-term debt	21,259	19,524
Long-term debt designated under fair value option	8,391	8,144
Level 2 [Member] | Commercial Loans [Member]
Fair Value Of Other Financial Instrument [Line Items]
Commercial loans designated under fair value option and held for sale	255	384
Loans held for sale	36	144
Level 2 [Member] | Consumer Loans [Member] | Residential Mortgage [Member]
Fair Value Of Other Financial Instrument [Line Items]
Loans held for sale	20	14
Level 2 [Member] | Consumer Loans [Member] | Other consumer [Member]
Fair Value Of Other Financial Instrument [Line Items]
Loans held for sale	0	0
Level 2 [Member] | Deposits Without Fixed Maturities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Deposits	109,625	105,962
Level 2 [Member] | Deposits With Fixed Maturities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Deposits	2,524	2,813
Level 3 [Member]
Fair Value Of Other Financial Instrument [Line Items]
Short-term financial assets	39	48
Federal funds sold and securities purchased under resale agreements	0	0
Non-derivative trading assets	3,101	3,093
Derivatives	45	48
Securities	0	0
Commercial loans, net of allowance for credit losses	62,494	58,891
Consumer loans, net of allowance for credit losses	18,143	17,896
Short-term financial liabilities	39	48
Deposits designated under fair value option	1,926	1,968
Non-derivative trading liabilities	0	0
Derivatives	29	29
Long-term debt	0	0
Long-term debt designated under fair value option	642	647
Level 3 [Member] | Commercial Loans [Member]
Fair Value Of Other Financial Instrument [Line Items]
Commercial loans designated under fair value option and held for sale	0	0
Loans held for sale	0	0
Level 3 [Member] | Consumer Loans [Member] | Residential Mortgage [Member]
Fair Value Of Other Financial Instrument [Line Items]
Loans held for sale	5	5
Level 3 [Member] | Consumer Loans [Member] | Other consumer [Member]
Fair Value Of Other Financial Instrument [Line Items]
Loans held for sale	90	66
Level 3 [Member] | Deposits Without Fixed Maturities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Deposits	0	0
Level 3 [Member] | Deposits With Fixed Maturities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Deposits	0	0
Carrying Value [Member]
Fair Value Of Other Financial Instrument [Line Items]
Short-term financial assets	33,260	31,746
Federal funds sold and securities purchased under resale agreements	6,965	1,413
Non-derivative trading assets	15,938	15,490
Derivatives	8,403	7,258
Securities	47,111	43,609
Commercial loans, net of allowance for credit losses	61,113	57,595
Consumer loans, net of allowance for credit losses	19,642	19,466
Short-term financial liabilities	15,710	12,861
Deposits designated under fair value option	6,948	7,346
Non-derivative trading liabilities	646	705
Derivatives	11,846	8,413
Long-term debt	20,387	18,733
Long-term debt designated under fair value option	9,033	8,791
Carrying Value [Member] | Commercial Loans [Member]
Fair Value Of Other Financial Instrument [Line Items]
Commercial loans designated under fair value option and held for sale	255	384
Loans held for sale	36	144
Carrying Value [Member] | Consumer Loans [Member] | Residential Mortgage [Member]
Fair Value Of Other Financial Instrument [Line Items]
Loans held for sale	24	18
Carrying Value [Member] | Consumer Loans [Member] | Other consumer [Member]
Fair Value Of Other Financial Instrument [Line Items]
Loans held for sale	90	66
Carrying Value [Member] | Deposits Without Fixed Maturities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Deposits	109,625	105,962
Carrying Value [Member] | Deposits With Fixed Maturities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Deposits	2,521	2,810
Estimate of fair value [Member]
Fair Value Of Other Financial Instrument [Line Items]
Short-term financial assets	33,260	31,746
Federal funds sold and securities purchased under resale agreements	6,965	1,413
Non-derivative trading assets	15,938	15,490
Derivatives	8,403	7,258
Securities	47,446	43,835
Commercial loans, net of allowance for credit losses	62,494	58,891
Consumer loans, net of allowance for credit losses	18,143	17,896
Short-term financial liabilities	15,710	12,861
Deposits designated under fair value option	6,948	7,346
Non-derivative trading liabilities	646	705
Derivatives	11,846	8,413
Long-term debt	21,259	19,524
Long-term debt designated under fair value option	9,033	8,791
Estimate of fair value [Member] | Commercial Loans [Member]
Fair Value Of Other Financial Instrument [Line Items]
Commercial loans designated under fair value option and held for sale	255	384
Loans held for sale	36	144
Estimate of fair value [Member] | Consumer Loans [Member] | Residential Mortgage [Member]
Fair Value Of Other Financial Instrument [Line Items]
Loans held for sale	25	19
Estimate of fair value [Member] | Consumer Loans [Member] | Other consumer [Member]
Fair Value Of Other Financial Instrument [Line Items]
Loans held for sale	90	66
Estimate of fair value [Member] | Deposits Without Fixed Maturities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Deposits	109,625	105,962
Estimate of fair value [Member] | Deposits With Fixed Maturities [Member]
Fair Value Of Other Financial Instrument [Line Items]
Deposits	$ 2,524	$ 2,813

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Allowance for Credit Losses - Summary of Changes in Allowance for Credit Losses and Related Loan Balance by Product (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014		Dec. 31, 2014
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	$ 680		$ 606
Provision for credit losses	53		16
Charge offs	(38)		(67)
Recoveries	8		19
Net (charge offs) recoveries	(30)		(48)
Balance at end of period	703		574
Ending balance: collectively evaluated for impairment	631		497
Ending balance: individually evaluated for impairment	72		77
Total allowances for credit losses	703		574
Collectively evaluated for impairment	79,351		66,754
Individually evaluated for impairment	543	[1]	527	[1]
Loans carried at the lower of amortized cost or fair value less cost to sell	1,564		1,616
Total loans	81,458		68,897		77,741
Commercial Loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Total loans	61,647				58,087
Commercial Loans [Member] | Construction and Other Real Estate [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	89		108
Provision for credit losses	2		2
Charge offs	(1)		(19)
Recoveries	0		2
Net (charge offs) recoveries	(1)		(17)
Balance at end of period	90		93
Ending balance: collectively evaluated for impairment	87		84
Ending balance: individually evaluated for impairment	3		9
Total allowances for credit losses	90		93
Collectively evaluated for impairment	10,702		8,905
Individually evaluated for impairment	199	[1]	260	[1]
Loans carried at the lower of amortized cost or fair value less cost to sell	0		0
Total loans	10,901		9,165		10,300
Commercial Loans [Member] | Business and Corporate Banking [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	275		112
Provision for credit losses	24		19
Charge offs	(6)		(5)
Recoveries	2		3
Net (charge offs) recoveries	(4)		(2)
Balance at end of period	295		129
Ending balance: collectively evaluated for impairment	272		126
Ending balance: individually evaluated for impairment	23		3
Total allowances for credit losses	295		129
Collectively evaluated for impairment	19,155		15,681
Individually evaluated for impairment	96	[1]	17	[1]
Loans carried at the lower of amortized cost or fair value less cost to sell	0		0
Total loans	19,251		15,698		17,819
Commercial Loans [Member] | Global Banking [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	107		68
Provision for credit losses	21		7
Charge offs	0		(8)
Recoveries	0		0
Net (charge offs) recoveries	0		(8)
Balance at end of period	128		67
Ending balance: collectively evaluated for impairment	128		67
Ending balance: individually evaluated for impairment	0		0
Total allowances for credit losses	128		67
Collectively evaluated for impairment	28,016		21,979
Individually evaluated for impairment	13	[1]	0	[1]
Loans carried at the lower of amortized cost or fair value less cost to sell	0		0
Total loans	28,029		21,979		26,387
Commercial Loans [Member] | Other Commercial [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	21		20
Provision for credit losses	1		(4)
Charge offs	(1)		0
Recoveries	0		3
Net (charge offs) recoveries	(1)		3
Balance at end of period	21		19
Ending balance: collectively evaluated for impairment	20		18
Ending balance: individually evaluated for impairment	1		1
Total allowances for credit losses	21		19
Collectively evaluated for impairment	3,459		3,031
Individually evaluated for impairment	7	[1]	20	[1]
Loans carried at the lower of amortized cost or fair value less cost to sell	0		0
Total loans	3,466		3,051		3,581
Consumer Loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Total loans	19,811				19,654
Consumer Loans [Member] | Residential Mortgages [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	107		186
Provision for credit losses	0		(16)
Charge offs	(14)		(17)
Recoveries	2		3
Net (charge offs) recoveries	(12)		(14)
Balance at end of period	95		156
Ending balance: collectively evaluated for impairment	53		96
Ending balance: individually evaluated for impairment	42		60
Total allowances for credit losses	95		156
Collectively evaluated for impairment	15,281		14,150
Individually evaluated for impairment	217	[1]	202	[1]
Loans carried at the lower of amortized cost or fair value less cost to sell	1,493		1,548
Total loans	16,991		15,900		16,661
Consumer Loans [Member] | Home Equity Mortgages [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	32		49
Provision for credit losses	(2)		2
Charge offs	(2)		(5)
Recoveries	1		6
Net (charge offs) recoveries	(1)		1
Balance at end of period	29		52
Ending balance: collectively evaluated for impairment	28		50
Ending balance: individually evaluated for impairment	1		2
Total allowances for credit losses	29		52
Collectively evaluated for impairment	1,640		1,851
Individually evaluated for impairment	5	[1]	19	[1]
Loans carried at the lower of amortized cost or fair value less cost to sell	71		68
Total loans	1,716		1,938		1,784
Consumer Loans [Member] | Credit Card [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	39		50
Provision for credit losses	3		5
Charge offs	(8)		(11)
Recoveries	1		1
Net (charge offs) recoveries	(7)		(10)
Balance at end of period	35		45
Ending balance: collectively evaluated for impairment	33		43
Ending balance: individually evaluated for impairment	2		2
Total allowances for credit losses	35		45
Collectively evaluated for impairment	674		674
Individually evaluated for impairment	6	[1]	9	[1]
Loans carried at the lower of amortized cost or fair value less cost to sell	0		0
Total loans	680		683		720
Consumer Loans [Member] | Other consumer [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	10		13
Provision for credit losses	4		1
Charge offs	(6)		(2)
Recoveries	2		1
Net (charge offs) recoveries	(4)		(1)
Balance at end of period	10		13
Ending balance: collectively evaluated for impairment	10		13
Ending balance: individually evaluated for impairment	0		0
Total allowances for credit losses	10		13
Collectively evaluated for impairment	424		483
Individually evaluated for impairment	0	[1]	0	[1]
Loans carried at the lower of amortized cost or fair value less cost to sell	0		0
Total loans	$ 424		$ 483		$ 489

[1] For consumer loans and certain small business loans, these amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow analysis is then applied to these groups of TDR Loans. Loans individually evaluated for impairment exclude TDR loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $778 million and $718 million at March 31, 2015 and 2014, respectively.

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

The following table presents changes in accumulated other comprehensive loss balances:

Three Months Ended March 31,	2015			2014
	(in millions)
Unrealized gains (losses) on investment securities:
Balance at beginning of period	$	158		$	(18	)
Other comprehensive income (loss) for period:
Net unrealized gains (losses) arising during period, net of tax of $(11) million and $93 million, respectively	(19		)	144
Reclassification adjustment for gains realized in net income, net of tax of $(9) million and $(9) million, respectively(1)	(14		)	(14		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity realized in net income, net of tax of $3 million(2)	5			—
Total other comprehensive income (loss) for period	(28		)	130
Balance at end of period	130			112
Unrealized losses on other-than-temporarily impaired debt securities held-to-maturity:
Balance at beginning of period	—			(60		)
Other comprehensive income for period:
Reclassification adjustment related to the accretion of unrealized other-than-temporary impairment, net of tax of $1 million(3)	—			1
Total other comprehensive income for period	—			1
Balance at end of period	—			(59		)
Unrealized losses on derivatives designated as cash flow hedges:
Balance at beginning of period	(156		)	(83		)
Other comprehensive loss for period:
Net unrealized losses arising during period, net of tax of $(12) million and $(13) million, respectively	(21		)	(21		)
Reclassification adjustment for losses realized in net income, net of tax of $1 million and less than $1 million, respectively(4)	2			1
Total other comprehensive loss for period	(19		)	(20		)
Balance at end of period	(175		)	(103		)
Pension and postretirement benefit liability:
Balance at beginning of period	(3		)	2
Other comprehensive income for period:
Change in unfunded pension and postretirement liability, net of tax of less than $1 million	1			—
Total other comprehensive income for period	1			—
Balance at and end of period	(2		)	2
Total accumulated other comprehensive loss at end of period	$	(47	)	$	(48	)

⁽¹⁾  Amount reclassified to net income is included in other securities gains, net in our consolidated statement of income.

⁽²⁾  Amount amortized to net income is included in interest income in our consolidated statement of income. During the third quarter of 2014, we transferred securities from available-for-sale to held-to-maturity. At the date of transfer, AOCI included net pretax unrealized losses of $234 million related to the transferred securities which will be amortized over the remaining contractual life of each security as an adjustment of yield in a manner consistent with the amortization of any premium or discount.

⁽³⁾  Amount reclassified to the carrying value of the debt securities is included in securities held-to-maturity in our consolidated balance sheet.

⁽⁴⁾  Amount reclassified to net income is included in interest income (expense) in our consolidated statement of income.

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Pensions and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Pensions and Other Postretirement Benefits

Pension and Other Postretirement Benefits

Defined Benefit Pension Plan  The components of pension expense for the defined benefit pension plan recorded in our consolidated statement of income and shown in the table below reflect the portion of pension expense of the combined HSBC North America Pension Plan (either the "HBSC North America Pension Plan" or the "Plan") which has been allocated to us.

Three Months Ended March 31,	2015			2014
	(in millions)
Service cost – benefits earned during the period	$	2		$	1
Interest cost on projected benefit obligation	17			18
Expected return on plan assets	(23		)	(20		)
Amortization of net actuarial loss	9			9
Pension expense	$	5		$	8

During the first quarter of 2015, HSBC North America made an additional contribution of $46 million to the Plan.

Postretirement Plans Other Than Pensions  The components of net periodic benefit cost for our postretirement plans other than pension are as follows:

Three Months Ended March 31,	2015		2014
	(in millions)
Interest cost on accumulated benefit obligation	1		1
Net periodic postretirement benefit cost	$	1	$	1

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Business Segments Additional Information (Details)	3 Months Ended
	Mar. 31, 2015 segment
Segment Reporting [Abstract]
Number of Reportable Segments	4