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Related Party Transactions (Tables)
 6 Months Ended
Jun. 30, 2016
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:
 
June 30, 2016
 
December 31, 2015
 
(in millions)
Assets:
 
 
 
Cash and due from banks
$
172

 
$
169

Interest bearing deposits with banks
280

 
244

Securities purchased under agreements to resell(1)
4,000

 
4,000

Trading assets(2)
19,795

 
18,632

Loans
5,072

 
4,815

Other(3)
229

 
458

Total assets
$
29,548

 
$
28,318

Liabilities:
 
 
 
Deposits
$
22,589

 
$
13,486

Trading liabilities(2)
21,632

 
19,496

Short-term borrowings
2,449

 
2,004

Long-term debt
1,830

 
1,827

Other(3)
274

 
346

Total liabilities
$
48,774

 
$
37,159

 
(1) 
Reflects overnight purchases of U.S. Treasury securities which HSBC Securities (USA) Inc. ("HSI") has agreed to repurchase.
(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 balances associated with hedging activities and other miscellaneous account receivables and payables.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
(in millions)
Income/(Expense):
 
 
 
 
 
 
 
Interest income
$
30

 
$
28

 
$
60

 
$
58

Interest expense
(35
)
 
(8
)
 
(64
)
 
(22
)
Net interest income
(5
)
 
20

 
(4
)
 
36

Trading revenue
956

 
221

 
799

 
369

Servicing and other fees from HSBC affiliates:
 
 
 
 
 
 
 
HSBC Bank plc
26

 
18

 
48

 
37

HSBC Finance Corporation
8

 
13

 
21

 
29

HSBC Markets (USA) Inc. ("HMUS")
4

 
6

 
10

 
13

Other HSBC affiliates
13

 
16

 
26

 
30

Total servicing and other fees from HSBC affiliates
51

 
53

 
105

 
109

Gain (loss) on instruments designed at fair value and related derivatives
79

 
(128
)
 
35

 
130

Support services from HSBC affiliates:
 
 
 
 
 
 
 
HMUS
(55
)
 
(69
)
 
(108
)
 
(133
)
HSBC Technology & Services (USA) ("HTSU")
(253
)
 
(264
)
 
(482
)
 
(504
)
Other HSBC affiliates
(47
)
 
(52
)
 
(85
)
 
(100
)
Total support services from HSBC affiliates
(355
)
 
(385
)
 
(675
)
 
(737
)
Stock based compensation expense with HSBC(1)
(11
)
 
(15
)
 
(17
)
 
(28
)

 
(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 (loss). Employees also may participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 13, "Pension and Other Postretirement Benefits."
Schedule of Assets by Related Party
At June 30, 2016 and December 31, 2015, we have the following loan balances outstanding with HSBC affiliates:

June 30, 2016
 
December 31, 2015
 
(in millions)
HSBC Finance Corporation
$
3,013

 
$
3,014

HSBC Markets (USA) Inc. ("HMUS") and subsidiaries
588

 
978

HSBC Mexico S.A.
725

 
725

Regency Assets Limited ("Regency")(1)
729

 
58

Other short-term affiliate lending
17

 
40

Total loans
$
5,072

 
$
4,815


 
(1) 
An asset-backed commercial paper conduit consolidated by an HSBC affiliate.