Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Summary of related party transactions

	June 30, 2012		December 31, 2011
	(in millions)
Assets:
Cash and due from banks	$	212	$	263
Interest bearing deposits with banks		1,141		1,416
Federal funds sold and securities purchased under resale agreements		189		228
Trading assets (1)		22,605		22,367
Loans		2,057		858
Other		907		248
Total assets	$	27,111	$	25,380
Liabilities:
Deposits	$	14,959	$	18,153
Trading liabilities (1)		25,071		25,298
Short-term borrowings		3,142		2,916
Long-term debt		3,989		3,988
Other		589		451
Total liabilities	$	47,750	$	50,806

⁽¹⁾  Trading assets and liabilities exclude the impact of netting which allow the offsetting of amounts relating to certain contracts if certain conditions are met.

	Three Months Ended June  30,						Six Months Ended June  30,
	2012			2011			2012			2011
	(in millions)
Income/(Expense):
Interest income	$	14		$	17		$	27		$	30
Interest expense		(23	)		(21	)		(47	)		(34	)
Net interest expense	$	(9	)	$	(4	)	$	(20	)	$	(4	)
Servicing and other fees with HSBC affiliates:
Fees and commissions:
HSBC Finance	$	1		$	2		$	2		$	4
HSBC Markets (USA) Inc. (“HMUS”)		5			8			10			11
Other HSBC affiliates		14			20			42			39
Other HSBC affiliates income		26			26			48			48
Total affiliate income	$	46		$	56		$	102		$	102
Residential mortgage banking revenue	$	1		$	2		$	3		$	4
Support services from HSBC affiliates:
HSBC Finance	$	7		$	10		$	17		$	19
HMUS		74			74			146			122
HSBC Technology & Services (USA) Inc. (“HTSU”)		240			240			474			446
Other HSBC affiliates		49			40			101			93
Total support services from HSBC affiliates	$	370		$	364		$	738		$	680
Stock based compensation expense with HSBC	$	8		$	15		$	20		$	24

Information regarding loans

	Private Label				Credit Card
	Cards		Commercial and Closed End Loans(1)		General Motors		Union Privilege		Other		Total
	(in billions)
Loans serviced by HSBC Finance:
June 30, 2012	$	-	$	-	$	-	$	-	$	-	$	-
December 31, 2011		12.5		.3		4.1		3.5		.8		21.2
Total loans purchased on a daily basis from HSBC Finance during:
Three months ended June 30, 2012		1.1		-		.9		.3		.2		2.5
Three months ended June 30, 2011		3.6		-		3.3		.8		.4		8.1
Six months ended June 30, 2012		4.4		-		3.9		1.0		.6		9.9
Six months ended June 30, 2011		6.8		-		6.4		1.5		.8		15.5

⁽¹⁾  Private label commercial loans were previously included in other commercial loans and private label closed end loans were included in other consumer loans in Note 6, “Loans”.