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Related Party Transactions (Tables)
 12 Months Ended
Dec. 31, 2013
Related Party Transactions [Abstract]  
Summary 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:


At December 31,
2013
 
2012
 
(in millions)
Assets:
 
 
 
Cash and due from banks
$
102

 
$
114

Interest bearing deposits with banks (1)
631

 
714

Trading assets (2)
17,082

 
21,370

Loans
5,328

 
4,514

Other (3)
1,219

 
858

Total assets
$
24,362

 
$
27,570

Liabilities:
 
 
 
Deposits
$
16,936

 
$
13,863

Trading liabilities (2)
19,463

 
23,910

Short-term borrowings
1,514

 
2,721

Long-term debt
3,987

 
3,990

Other (3)
573

 
459

Total liabilities
$
42,473

 
$
44,943

 
(1) 
Includes interest bearing deposits with HSBC Mexico S.A. of $500 million at both December 31, 2013 and 2012, respectively.
(2) 
Trading assets and liabilities do not reflect the impact of netting which allows the offsetting of amounts relating to certain contracts if certain conditions are met. Trading assets and liabilities primarily consist of derivatives contracts.
(3) 
Other assets and other liabilities primarily consist of derivative contracts.
Year Ended December 31,
2013
 
2012
 
2011
 
(in millions)
Income/(Expense):
 
 
 
 
 
Interest income
$
232

 
$
193

 
$
128

Interest expense
(78
)
 
(91
)
 
(82
)
Net interest income (loss)
$
154

 
$
102

 
$
46

Servicing and other fees from HSBC affiliate:
 
 
 
 
 
Fees and commissions:
 
 
 
 
 
HSBC Finance Corporation
$
86

 
$
72

 
$
65

HSBC Markets (USA) Inc. ("HMUS")
17

 
18

 
23

Other HSBC affiliates
51

 
74

 
79

Other HSBC affiliates income
48

 
38

 
35

Total affiliate income
$
202

 
$
202

 
$
202

Residential mortgage banking revenue
$
—

 
$
3

 
$
17

Support services from HSBC affiliates:
 
 
 
 
 
HSBC Finance Corporation
$
(14
)
 
$
(27
)
 
$
(36
)
HMUS
(228
)
 
(326
)
 
(275
)
HSBC Technology & Services (USA) ("HTSU")
(1,000
)
 
(912
)
 
(967
)
Other HSBC affiliates
(217
)
 
(215
)
 
(235
)
Total support services from HSBC affiliates
$
(1,459
)
 
$
(1,480
)
 
$
(1,513
)
Stock based compensation expense with HSBC (1)
$
(34
)
 
$
(36
)
 
$
(56
)

 
(1)
Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in Salaries and employee benefits in our consolidated statement of income (loss). Employees also may participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 21, "Pension and Other Postretirement Benefits."
Schedule of Assets by Related Party
At December 31, 2013 and 2012, we have the following loan balances outstanding with HSBC affiliates:
At December 31,
2013
 
2012
 
(in millions)
HSBC Finance Corporation
$
3,015

 
$
2,019

HSBC Markets (USA) Inc. ("HMUS") and subsidiaries
199

 
310

HSBC Bank Brasil S.A.
1,000

 
1,000

HSBC Bank Panama S.A.
—

 
372

Other short-term affiliate lending
1,114

 
813

Total assets
$
5,328

 
$
4,514