Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2020

Related Party Transactions [Abstract]

Summary of Related Party Transactions

The following tables present related party balances and the income (expense) generated by related party transactions:

	September 30, 2020		December 31, 2019
	(in millions)
Assets:
Cash and due from banks	$	677	$	850
Interest bearing deposits with banks	26		40
Securities purchased under agreements to resell(1)	2,185		4,600
Trading assets	470		79
Loans	1,180		2,343
Other(2)	360		456
Total assets	$	4,898	$	8,368
Liabilities:
Deposits	$	18,397	$	9,000
Trading liabilities	324		293
Short-term borrowings	949		1,166
Long-term debt	2,866		7,848
Other(2)	194		931
Total liabilities	$	22,730	$	19,238

⁽¹⁾Reflects purchases of securities under 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,
	2020		2019		2020		2019
	(in millions)
Income (Expense):
Interest income	$	9	$	44	$	47	$	134
Interest expense	(77)		(151)		(276)		(427)
Net interest expense	(68)		(107)		(229)		(293)
Trading revenue (expense)	(1,755)		551		(2,372)		(972)
Servicing and other fees from HSBC affiliates:
HSBC Bank plc	43		40		131		121
HSBC Markets (USA) Inc. ("HMUS")	27		27		84		84
Other HSBC affiliates	9		21		40		52
Total servicing and other fees from HSBC affiliates	79		88		255		257
Gain (loss) on instruments designated at fair value and related derivatives	307		98		(203)		1,518
Support services from HSBC affiliates:
HTSU	(285)		(274)		(820)		(849)
HMUS	(17)		(24)		(63)		(74)
Other HSBC affiliates	(89)		(96)		(279)		(262)
Total support services from HSBC affiliates	(391)		(394)		(1,162)		(1,185)
Rental income from HSBC affiliates, net(1)	13		16		31		40
Stock based compensation expense(2)	(3)		(6)		(16)		(20)

⁽¹⁾We receive rental income from our affiliates, and in some cases pay rental expense to our affiliates, for rent on certain office space. Net rental income from our affiliates is recorded as a component of occupancy expense, net in our consolidated statement of income (loss).

⁽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 (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 12, "Pension and Other Postretirement Benefits."

Schedule of Assets by Related Party

At September 30, 2020 and December 31, 2019, we had the following loan balances outstanding with HSBC affiliates:

	September 30, 2020		December 31, 2019
	(in millions)
HMUS and subsidiaries	$	1,088	$	2,296
Other short-term affiliate lending	92		47
Total loans	$	1,180	$	2,343