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Related Party Transactions (Tables)
 9 Months Ended
Sep. 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:
 
September 30, 2017
 
December 31, 2016
 
(in millions)
Assets:
 
 
 
Cash and due from banks
$
161

 
$
364

Interest bearing deposits with banks
625

 
980

Securities purchased under agreements to resell(1)
5

 
949

Trading assets
29

 
74

Loans
1,820

 
3,274

Other(2)
348

 
291

Total assets
$
2,988

 
$
5,932

Liabilities:
 
 
 
Deposits
$
13,131

 
$
23,999

Trading liabilities
492

 
510

Short-term borrowings
1,639

 
2,148

Long-term debt
4,839

 
4,834

Other(2)
508

 
247

Total liabilities
$
20,609

 
$
31,738

 
(1) 
Reflects purchases of securities which other HSBC affiliates have 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 September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
(in millions)
Income/(Expense):
 
 
 
 
 
 
 
Interest income
$
16

 
$
30

 
$
51

 
$
90

Interest expense
(72
)
 
(38
)
 
(208
)
 
(102
)
Net interest expense
(56
)
 
(8
)
 
(157
)
 
(12
)
Trading revenue (expense)
—

 
(661
)
 
(806
)
 
138

Servicing and other fees from HSBC affiliates:
 
 
 
 
 
 
 
HSBC Bank plc
22

 
22

 
67

 
70

HSBC Finance Corporation
3

 
8

 
40

 
29

HSBC Markets (USA) Inc. ("HMUS")
6

 
5

 
16

 
15

Other HSBC affiliates
21

 
15

 
63

 
41

Total servicing and other fees from HSBC affiliates
52

 
50

 
186

 
155

Gain on instruments designated at fair value and related derivatives
347

 
193

 
871

 
228

Support services from HSBC affiliates:
 
 
 
 
 
 
 
HMUS
(14
)
 
(42
)
 
(38
)
 
(150
)
HSBC Technology & Services (USA) ("HTSU")
(268
)
 
(252
)
 
(846
)
 
(734
)
Other HSBC affiliates
(58
)
 
(60
)
 
(150
)
 
(145
)
Total support services from HSBC affiliates
(340
)
 
(354
)
 
(1,034
)
 
(1,029
)
Stock based compensation expense(1)
(8
)
 
(7
)
 
(26
)
 
(24
)

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

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

 
$
2,501

HSBC Markets (USA) Inc. ("HMUS") and subsidiaries
1,742

 
563

HSBC Mexico S.A.
—

 
195

Other short-term affiliate lending
78

 
15

Total loans
$
1,820

 
$
3,274