RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS (Tables)

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Schedule of inter-company borrowed funds

The following is a summary of borrowed funds from RBS:

	Interest Rate			Maturity Date	March 31, 2016	December 31, 2015
(dollars in millions)
Subordinated debt	5.158	%		June 2023	$333		$333
	3.750	%	(1)	July 2024	250	250
	4.023	%	(2)	October 2024	208	333
	4.082	%		January 2025	334	334

⁽¹⁾ Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153%.

⁽²⁾ On March 7, 2016, the Company repurchased $125 million of these securities from RBS.

Schedule of related party transactions, recorded interest expense

The following table presents total interest expense recorded on subordinated debt with RBS:

	Three Months Ended March 31,
(in millions)	2016		2015
Interest expense on subordinated debt		$11		$20