XML 178 R64.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions (Tables)
 12 Months Ended
Dec. 31, 2012
Related Party Transactions [Abstract]  
Summary of Related Party Transactions
The following table presents related party balances and the income and expense generated by related party transactions:
At December 31,
2012
 
2011
 
(in millions)
Assets:
 
 
 
Cash and due from banks
$
114

 
$
263

Interest bearing deposits with banks
714

 
1,416

Federal funds sold and securities purchased under agreements to resell
—

 
228

Trading assets(1)
21,370

 
22,367

Loans
4,514

 
858

Other
858

 
248

Total assets
$
27,570

 
$
25,380

Liabilities:
 
 
 
Deposits
$
13,863

 
$
18,153

Trading liabilities(1)
23,910

 
25,298

Short-term borrowings
2,721

 
2,916

Long-term debt
3,990

 
3,988

Other
459

 
451

Total liabilities
$
44,943

 
$
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.
 
Year Ended December 31,
  
2012
 
2011
 
2010
 
(in millions)
Income/(Expense):
 
 
 
 
 
Interest income
$
52

 
$
62

 
$
91

Interest expense
(91
)
 
(82
)
 
(44
)
Net interest income (loss)
$
(39
)
 
$
(20
)
 
$
47

Servicing and other fees from HSBC affiliate:
 
 
 
 
 
Fees and commissions:
 
 
 
 
 
HSBC Finance
$
76

 
$
68

 
$
45

HSBC Markets (USA) Inc. (“HMUS”)
18

 
23

 
13

Other HSBC affiliates
73

 
73

 
72

Fees on transfers of refund anticipation loans to HSBC Finance
—

 
—

 
4

Other HSBC affiliates income
35

 
38

 
22

Total affiliate income
$
202

 
$
202

 
$
156

Residential mortgage banking revenue
$
3

 
$
17

 
$
11

Support services from HSBC affiliates:
 
 
 
 
 
HSBC Finance
$
(27
)
 
$
(36
)
 
$
(101
)
HMUS
(303
)
 
(257
)
 
(288
)
HSBC Technology & Services (USA) (“HTSU”)
(912
)
 
(967
)
 
(780
)
Other HSBC affiliates
(187
)
 
(194
)
 
(117
)
Total support services from HSBC affiliates
$
(1,429
)
 
$
(1,454
)
 
$
(1,286
)
Stock based compensation expense with HSBC
$
(36
)
 
$
(56
)
 
$
(42
)
Information Regarding Loans
As it relates to our discontinued credit card and private label operations, in January 2009, we purchased the GM and UP Portfolios from HSBC Finance, with an outstanding principal balance of $12.4 billion at the time of sale, at a total net premium of $113 million. Additionally, in December 2004, we purchased the private label credit card receivable portfolio as well as private label commercial and closed end loans from HSBC Finance. HSBC Finance retained the customer account relationships for both the GM and UP receivables and the private label credit card receivables and by agreement we purchased on a daily basis substantially all new originations from these account relationships from HSBC Finance. Premiums paid for these receivables are amortized to interest income over the estimated life of the receivables purchased and are included as a component of Income from Discontinued Operations. HSBC Finance serviced these credit card loans for us for a fee up until May 2012. Information regarding these loans is summarized in the table below.
 
Private Label
 
Credit Card
 
 
  
Cards
 
Commercial and
Closed
End Loans
 
General
Motors
 
Union
Privilege
 
Other
 
Total
 
(in billions)
Loans serviced by HSBC Finance:
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

December 31, 2011
12.5

 
0.3

 
4.1

 
3.5

 
0.8

 
21.2

Total loans purchased on a daily basis from HSBC Finance during:
 
 
 
 
 
 
 
 
 
 
 
2012
4.4

 
—

 
3.9

 
1.0

 
0.6

 
9.9

2011
15.4

 
—

 
13.0

 
3.2

 
1.8

 
33.4

2010
14.6

 
—

 
13.5

 
3.2

 
1.7

 
33.0