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Related Party Transactions (Tables)
9 Months Ended
Sep. 30, 2014
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:
 
September 30, 2014
 
December 31, 2013
 
(in millions)
Assets:
 
 
 
Cash and due from banks
$
159

 
$
102

Interest bearing deposits with banks (1)
960

 
631

Trading assets (2)
17,908

 
17,082

Loans
4,812

 
5,328

Other (3)
1,359

 
1,219

Total assets
$
25,198

 
$
24,362

Liabilities:
 
 
 
Deposits
$
12,672

 
$
16,936

Trading liabilities (2)
18,670

 
19,463

Short-term borrowings
504

 
1,514

Long-term debt
3,984

 
3,987

Other (3)
598

 
573

Total liabilities
$
36,428

 
$
42,473

 
(1) 
Includes interest bearing deposits with HSBC Mexico S.A. of $800 million and $500 million at September 30, 2014 and December 31, 2013, respectively.
(2) 
Trading assets and trading 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.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
 
(in millions)
Income/(Expense):
 
 
 
 
 
 
 
Interest income
$
37

 
$
31

 
$
160

 
$
143

Interest expense
(19
)
 
(19
)
 
(56
)
 
(59
)
Net interest income
$
18

 
$
12

 
$
104

 
$
84

Servicing and other fees from HSBC affiliate:
 
 
 
 
 
 
 
Fees and commissions:
 
 
 
 
 
 
 
HSBC Finance Corporation
$
24

 
$
20

 
$
62

 
$
67

HSBC Markets (USA) Inc. ("HMUS")
3

 
4

 
8

 
13

Other HSBC affiliates
12

 
9

 
43

 
39

Other HSBC affiliates income
14

 
8

 
38

 
35

Total affiliate income
$
53

 
$
41

 
$
151

 
$
154

Support services from HSBC affiliates:
 
 
 
 
 
 
 
HSBC Finance Corporation
$
(2
)
 
$
(2
)
 
$
(8
)
 
$
(11
)
HMUS
(52
)
 
(58
)
 
(156
)
 
(164
)
HSBC Technology & Services (USA) ("HTSU")
(274
)
 
(274
)
 
(798
)
 
(749
)
Other HSBC affiliates
(60
)
 
(44
)
 
(165
)
 
(140
)
Total support services from HSBC affiliates
$
(388
)
 
$
(378
)
 
$
(1,127
)
 
$
(1,064
)
Stock based compensation expense with HSBC (1)
$
(18
)
 
$
(7
)
 
$
(36
)
 
$
(29
)

 
(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. Employees also may participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 12, "Pension and Other Postretirement Benefits."
Schedule of Assets by Related Party
At September 30, 2014 and December 31, 2013, we have the following loan balances outstanding with HSBC affiliates:
 
September 30, 2014
 
December 31, 2013
 
(in millions)
HSBC Finance Corporation
$
3,014

 
$
3,015

HSBC Markets (USA) Inc. ("HMUS") and subsidiaries
559

 
199

HSBC Bank Brasil S.A.
1,103

 
1,000

Other short-term affiliate lending
136

 
1,114

Total loans
$
4,812

 
$
5,328