Consolidated Statement of Cash Flows (Unaudited) (USD $) In Millions	6 Months Ended
	Jun. 30, 2011		Jun. 30, 2010
Cash flows from operating activities
Net income	$ 561		$ 854
Income from discontinued operations			9
Income from continuing operations	561		845
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	408		328
Impairment of internally developed software	94
Provision for credit losses	391		667
Other-than-temporary impairment losses relating to credit			41	[1]
Realized gains on securities available for sale	(56)		(22)
Net change in other assets and liabilities	957		(140)
Net change in loans held for sale:
Originations of loans	(1,626)		(1,903)
Sales and collection of loans held for sale	2,432		2,368
Tax Refund Anticipation Loans:
Originations of loans			(3,082)
Transfers of loans to HSBC Finance, including premium			3,086
Net change in trading assets and liabilities	688		(1,122)
LOCOM on loans held for sale	30		(72)
Mark-to-market on financial instruments designated at fair value and related derivatives	(27)		(187)
Net change in fair value of derivatives and hedged items	(226)		13
Cash provided by operating activities - continuing operations	3,626		820
Cash provided by (used in) operating activities discontinued operations	(9)		43
Net cash provided by operating activities	3,617		863
Cash flows from investing activities
Net change in interest bearing deposits with banks	(22,333)		6,033
Net change in federal funds sold and securities purchased under agreements to resell	3,943		(14,444)
Securities available-for-sale:
Purchases of securities available-for-sale	(14,033)		(24,985)
Proceeds from sales of securities available-for-sale	13,582		15,449
Proceeds from maturities of securities available-for-sale	1,725		1,343
Securities held-to-maturity:
Purchases of securities held-to-maturity			(2,036)
Proceeds from maturities of securities held-to-maturity	415		794
Change in loans:
Originations, net of collections	16,554		20,404
Recurring loans purchases from HSBC Finance	(16,711)		(16,580)
Loans sold to third parties	196		138
Net cash used for acquisitions of properties and equipment	(3)		(22)
Other, net	(60)		87
Cash used in investing activities - continuing operations	(16,725)		(13,819)
Cash used in investing activities - discontinued operations	0		0
Net cash used in investing activities	(16,725)		(13,819)
Cash flows from financing activities
Net change in deposits	9,854		3,199
Debt:
Net change in short-term borrowings	1,103		9,521
Issuance of long-term debt	4,469		1,210
Repayment of long-term debt	(2,417)		(1,499)
Debt repayment related to structured note vehicle VIEs			(136)
Debt issued related to the sale and leaseback of 452 Fifth Avenue property			309
Repayment of debt issued related to the sale and leaseback of 452 Fifth Avenue property	(15)		(6)
Return of capital on preferred shares issued to CT Financial Services, Inc.			(3)
Other increases in capital surplus			1
Dividends paid	(36)		(37)
Cash provided by financing activities - continuing operations	12,958		12,559
Cash used in financing activities discontinued operations			(43)
Net cash provided by financing activities	12,958		12,516
Net change in cash and due from banks	(150)		(440)
Cash and due from banks at beginning of period(1)	1,693	[2]	3,159	[2]
Cash and due from banks at end of period(2)	1,543	[3]	2,719	[3]
Supplemental disclosure of non-cash flow investing activities
Trading Securities Pending Settlement	(289)		(596)
Transfer of loans to held for sale			$ 39

[1] During the three and six months ended June 30, 2011 there were no other-than-temporary impairment ("OTTI") losses on securities recognized in other revenues and no OTTI losses in the non-credit component on securities were recognized in accumulated other comprehensive income (loss). During the three and six months ended June 30, 2010, OTTI losses on securities available-for-sale and held-to-maturity totaling $13 million and $41 million, respectively, were recognized in other revenues and losses in the non-credit component recognized in accumulated other comprehensive income (loss) were not significant.

[2] Cash at beginning of period includes $117 million and $1,060 million for discontinued operations as of January 1, 2011 and 2010, respectively.

[3] Cash at end of period includes no amount for discontinued operations as of June 30, 2011 and includes $940 million for discontinued operations as of June 30, 2010.