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CONSOLIDATED STATEMENT OF INCOME (LOSS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Interest income:        
Loans $ 472 $ 456 $ 1,391 $ 1,346
Securities 252 306 837 929
Trading assets 27 52 86 156
Short-term investments 23 35 82 104
Other 11 10 32 32
Total interest income 785 859 2,428 2,567
Interest expense:        
Deposits 82 64 243 196
Short-term borrowings 9 11 24 32
Long-term debt 170 151 502 449
Other 14 12 27 96
Total interest expense 275 238 796 773
Net interest income 510 621 1,632 1,794
Provision for credit losses 84 78 173 171
Net interest income after provision for credit losses 426 543 1,459 1,623
Other revenues:        
Credit card fees 18 31 70 95
Other fees and commissions 167 222 530 605
Trust income 22 26 72 83
Trading revenue 113 (107) 395 243
Other securities gains, net 50 49 145 105
Servicing and other fees from HSBC affiliates 63 49 165 151
Residential mortgage banking revenue 4 34 31 48
Gain (loss) on instruments designated at fair value and related derivatives (187) 379 (258) 440
Gain on sale of branches 103   433  
Other income (loss) 44 (16) 44 20
Total other revenues 397 667 1,627 1,790
Operating expenses:        
Salaries and employee benefits 207 266 733 852
Support services from HSBC affiliates 362 412 1,100 1,092
Occupancy expense, net 60 73 176 209
Expense accrual related to certain regulatory matters (Note 21) 800   1,500  
Other expenses 188 170 515 589
Total operating expenses 1,617 921 4,024 2,742
Income (loss) from continuing operations before income tax expense (794) 289 (938) 671
Income tax expense (benefit) (12) 117 357 238
Income (loss) from continuing operations (782) 172 (1,295) 433
Discontinued Operations (Note 2):        
Income from discontinued operations before income tax expense   218 315 682
Income tax expense   78 112 242
Income from discontinued operations   140 203 440
Net income (loss) $ (782) $ 312 $ (1,092) $ 873