RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS (Tables)

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Schedule of inter-company borrowed funds

The following is a summary of borrowed funds originally issued to RBS:

	Interest Rate			Maturity Date	June 30, 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) (3)	October 2024	208	333
	4.082	%	(3)	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.

⁽³⁾ On July 28, 2016, the Company repurchased $500 million of its subordinated notes held by RBS, including $166 million of its 4.023% subordinated notes due 2024 and $334 million of its 4.082% subordinated notes due 2025. Refer to Note 21 “Subsequent Events” for further information.

Schedule of related party transactions, recorded interest expense

The following table presents total interest expense recorded on the subordinated debt presented above:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2016		2015		2016		2015
Interest expense on subordinated debt		$10		$20		$21		$40