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Related Party Transactions (Tables)
 6 Months Ended
Jun. 30, 2017
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, 2017
 
December 31, 2016
 
(in millions)
Assets:
 
 
 
Cash and due from banks
$
142

 
$
364

Interest bearing deposits with banks
844

 
980

Securities purchased under agreements to resell(1)
—

 
949

Trading assets
41

 
74

Loans
1,423

 
3,274

Other(2)
576

 
291

Total assets
$
3,026

 
$
5,932

Liabilities:
 
 
 
Deposits
$
13,303

 
$
23,999

Trading liabilities
861

 
510

Short-term borrowings
1,721

 
2,148

Long-term debt
4,837

 
4,834

Other(2)
250

 
247

Total liabilities
$
20,972

 
$
31,738

 
(1) 
Reflects overnight purchases of U.S. Treasury securities which HSBC Securities (USA) Inc. ("HSI") 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.
 
Three Months
Ended June 30,

 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
(in millions)
Income/(Expense):
 
 
 
 
 
 
 
Interest income
$
11

 
$
30

 
$
35

 
$
60

Interest expense
(70
)
 
(35
)
 
(136
)
 
(64
)
Net interest income (expense)
(59
)
 
(5
)
 
(101
)
 
(4
)
Trading revenue (expense)
(891
)
 
956

 
(806
)
 
799

Servicing and other fees from HSBC affiliates:
 
 
 
 
 
 
 
HSBC Bank plc
21

 
26

 
45

 
48

HSBC Finance Corporation
3

 
8

 
37

 
21

HSBC Markets (USA) Inc. ("HMUS")
5

 
4

 
10

 
10

Other HSBC affiliates
23

 
13

 
42

 
26

Total servicing and other fees from HSBC affiliates
52

 
51

 
134

 
105

Gain on instruments designated at fair value and related derivatives
164

 
79

 
524

 
35

Support services from HSBC affiliates:
 
 
 
 
 
 
 
HMUS
(12
)
 
(55
)
 
(24
)
 
(108
)
HSBC Technology & Services (USA) ("HTSU")
(293
)
 
(253
)
 
(578
)
 
(482
)
Other HSBC affiliates
(50
)
 
(47
)
 
(92
)
 
(85
)
Total support services from HSBC affiliates
(355
)
 
(355
)
 
(694
)
 
(675
)
Stock based compensation expense(1)
(11
)
 
(11
)
 
(18
)
 
(17
)

 
(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). 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 11, "Pension and Other Postretirement Benefits."
Schedule of Assets by Related Party
At June 30, 2017 and December 31, 2016, we have the following loan balances outstanding with HSBC affiliates:

June 30, 2017
 
December 31, 2016
 
(in millions)
HSBC Finance Corporation
$
—

 
$
2,501

HSBC Markets (USA) Inc. ("HMUS") and subsidiaries
1,192

 
563

HSBC Mexico S.A.
—

 
195

Other short-term affiliate lending
231

 
15

Total loans
$
1,423

 
$
3,274