Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2017

Due to affiliates consists of the following:



	June 30, 2017		December 31, 2016
	(in millions)
HSBC USA Inc.	$	—	$	2,500
HSBC Holdings plc (includes $487 million and $485 million at June 30, 2017 and December 31, 2016 carried at fair value, respectively)	799		800
Due to affiliates	$	799	$	3,300

The following tables and discussions below present the more significant related party balances and the income (expense) generated by related party transactions for continuing operations:



	June 30, 2017		December 31, 2016
	(in millions)
Assets:
Cash	$	50	$	128
Interest bearing deposits with banks	—		1,500
Securities purchased under agreements to resell⁽¹⁾	5,269		2,392
Other assets	98		114
Total assets	$	5,417	$	4,134
Liabilities:
Due to affiliates⁽²⁾	$	799	$	3,300
Other liabilities	31		41
Total liabilities	$	830	$	3,341


⁽¹⁾	Securities under an agreement to resell are purchased from HSBC Securities (USA) Inc. and generally have terms of 120 days or less. The collateral underlying the securities purchased under agreements to resell, however, is with an unaffiliated third party. Interest income recognized on these securities is reflected as interest income from HSBC affiliate in the table below.


⁽²⁾	Due to affiliates includes amounts owed to HSBC and its subsidiaries as a result of direct debt issuances and excludes preferred stock.



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(in millions)
Income/(Expense):
Interest income from HSBC affiliates	$	11		$	2		$	20		$	3
Interest expense paid to HSBC affiliates⁽¹⁾	(12		)	(69		)	(41		)	(144		)
Net interest income (expense)	$	(1	)	$	(67	)	$	(21	)	$	(141	)
Gain (loss) on FVO debt with affiliate	$	(1	)	$	12		$	2		$	12
Servicing and other fees from (to) HSBC affiliates	—			2			(27		)	6
Support services from HSBC affiliates	(21		)	(38		)	(44		)	(80		)
Stock based compensation income (expense) with HSBC⁽²⁾	—			(1		)	(1		)	—


⁽¹⁾	Includes interest expense paid to HSBC affiliates for debt held by HSBC affiliates as well as net interest paid to or received from HSBC affiliates on risk management hedges related to non-affiliated debt.

⁽²⁾

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). Certain employees are also eligible to participate in a defined benefit pension plan and other postretirement benefit plans sponsored by HSBC North America which are discussed in Note 8, "Pension and Other Postretirement Benefits."

HSBC Finance Corp 10-Q