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Related Party Transactions (Tables)
 12 Months Ended
Dec. 31, 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:
At December 31,
2016
 
2015
 
(in millions)
Assets:
 
 
 
Cash and due from banks
$
364

 
$
169

Interest bearing deposits with banks
980

 
244

Securities purchased under agreements to resell(1)
949

 
4,000

Trading assets
74

 
212

Loans
3,274

 
4,815

Other(2)
291

 
458

Total assets
$
5,932

 
$
9,898

Liabilities:
 
 
 
Deposits
$
23,999

 
$
13,486

Trading liabilities
510

 
1,954

Short-term borrowings
2,148

 
2,004

Long-term debt
4,834

 
1,827

Other(2)
247

 
346

Total liabilities
$
31,738

 
$
19,617

 
(1) 
Reflects overnight purchases of U.S. Treasury securities which HSBC Securities (USA) Inc. ("HSI") has agreed to repurchase.
(2) 
Other assets and other liabilities primarily consist of derivative balances associated with hedging activities and other miscellaneous account receivables and payables.
Year Ended December 31,
2016
 
2015
 
2014
 
(in millions)
Income/(Expense):
 
 
 
 
 
Interest income
$
122

 
$
117

 
$
71

Interest expense
(166
)
 
(63
)
 
(66
)
Net interest income (expense)
(44
)
 
54

 
5

Trading revenue (expense)
(1,297
)
 
402

 
(676
)
Servicing and other fees from HSBC affiliates:
 
 
 
 
 
HSBC Bank plc
95

 
82

 
49

HSBC Finance Corporation
40

 
53

 
81

HSBC Markets (USA) Inc. ("HMUS")
23

 
25

 
22

Other HSBC affiliates
59

 
53

 
47

Total servicing and other fees from HSBC affiliates
217

 
213

 
199

Gain (loss) on instruments designed at fair value and related derivatives
467

 
(116
)
 
453

Support services from HSBC affiliates:
 
 
 
 
 
HMUS
(176
)
 
(256
)
 
(248
)
HSBC Technology & Services (USA) ("HTSU")
(994
)
 
(999
)
 
(1,103
)
Other HSBC affiliates
(193
)
 
(180
)
 
(198
)
Total support services from HSBC affiliates
(1,363
)
 
(1,435
)
 
(1,549
)
Stock based compensation expense with HSBC(1)
(39
)
 
(49
)
 
(46
)

 
(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. Certain employees are also eligible to participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 20, "Pension and Other Postretirement Benefits.
Schedule of Assets by Related Party
At December 31, 2016 and 2015, we have the following loan balances outstanding with HSBC affiliates:
At December 31,
2016
 
2015
 
(in millions)
HSBC Finance Corporation
$
2,501

 
$
3,014

HSBC Markets (USA) Inc. ("HMUS") and subsidiaries
563

 
978

HSBC Mexico S.A.
195

 
725

Regency Assets Limited ("Regency")(1)
—

 
58

Other short-term affiliate lending
15

 
40

Total loans
$
3,274

 
$
4,815


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