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Related Party Transactions (Tables)
 9 Months Ended
Sep. 30, 2013
Related Party Transactions [Abstract]  
Schedule 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 for continuing operations:
 
September 30, 2013
 
December 31, 2012
 
(in millions)
Assets:
 
 
 
Cash
$
226

 
$
193

Securities purchased under agreements to resell(1)
6,196

 
2,160

Other assets
51

 
105

Total assets
$
6,473

 
$
2,458

Liabilities:
 
 
 
Due to affiliates(2)
$
8,965

 
$
9,089

Derivative related liability
—

 
18

Other liabilities
—

 
83

Total liabilities
$
8,965

 
$
9,190

 
(1) 
Securities under an agreement to resell are purchased from HSBC Securities (USA) Inc. ("HSI") and generally have terms of 90 days or less. The collateral underlying the securities purchased under agreements to resell, however, is not with HSI. Interest income recognized on these securities is reflected as interest income from HSBC affiliate in the table below.
(2) 
Due to affiliates includes amounts owed to HSBC and its subsidiaries as a result of direct debt issuances as well as HSBC's ownership of our subordinated debt and excludes preferred stock.
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
 
(in millions)
Income/(Expense):
 
 
 
 
 
 
 
Interest income from HSBC affiliates
$
1

 
$
1

 
$
3

 
$
3

Interest expense paid to HSBC affiliates(1)
(113
)
 
(140
)
 
(371
)
 
(420
)
Net interest income (loss)
$
(112
)
 
$
(139
)
 
$
(368
)
 
$
(417
)
Gain (loss) on FVO debt with affiliate
$
(16
)
 
$
(35
)
 
$
21

 
$
(54
)
Servicing and other fees from HSBC affiliates
6

 
8

 
19

 
26

Support services from HSBC affiliates
(78
)
 
(84
)
 
(213
)
 
(229
)
Stock based compensation expense with HSBC(2)
1

 
(2
)
 
(3
)
 
(6
)

 
(1) 
Includes interest expense paid to HSBC affiliates for debt held by HSBC affiliates as well as net interest paid to or received from HSBC affiliates on risk management hedges related to non-affiliated debt.
(2) 
Employees participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in Salary and employee benefits in our consolidated statement of income (loss). Employees also participate in a defined benefit pension plan and other postretirement benefit plans sponsored by HSBC North America which are discussed in Note 10, “Pension and Other Postretirement Benefits.”
Due to affiliates consists of the following:
 
September 30, 2013
 
December 31, 2012
 
(in millions)
HSBC Private Banking Holdings (Suisse) S.A. and subsidiaries
$
4,525

 
$
5,625

HSBC USA Inc.
3,012

 
2,012

HSBC Holdings plc (includes $493 million and $514 million at September 30, 2013 and December 31, 2012 carried at fair value, respectively)
818

 
842

HSBC North America Holdings Inc.
600

 
600

HSBC Asia Holdings BV
10

 
10

Due to affiliates
$
8,965

 
$
9,089