HSBC Finance (HSBCFC) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	HSBCFC
Entity Registrant Name	HSBC Finance Corp
Entity Central Index Key	354,964
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		68
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

CONSOLIDATED STATEMENT OF INCOM

CONSOLIDATED STATEMENT OF INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest income	$ 107	$ 342
Interest expense on debt held by:
Interest expense	90	160
Net interest income	17	182
Provision for credit losses	0	37	[1]
Net interest income after provision for credit losses	17	145
Other revenues:
Derivative related income (expense)	2	(115)
Gain on debt designated at fair value and related derivatives	12	24
Servicing and other fees from (to) HSBC affiliates	(27)	4
Lower of amortized cost or fair value adjustment on receivables held for sale	113	(55)
Gain on sale of real estate secured receivables	617	0
Other income	7	9
Total other revenues	724	(133)
Operating expenses:
Salaries and employee benefits	26	38
Occupancy and equipment expenses, net	2	6
Real estate owned expenses	1	3
Support services from HSBC affiliates	23	42
Other expenses	15	49
Total operating expenses	67	138
Income (loss) from continuing operations before income tax	674	(126)
Income tax expense (benefit)	256	(56)
Income (loss) from continuing operations	418	(70)
Discontinued operations:
Income (loss) from discontinued operations before income tax	6	(7)
Income tax expense (benefit)	2	(3)
Income (loss) from discontinued operations	4	(4)
Net income (loss)	422	(74)
Debt issued to non-affiliates [Member]
Interest expense on debt held by:
Interest expense	62	107
Debt issued to HSBC affiliates [Member]
Interest expense on debt held by:
Interest expense	$ 28	$ 53
[1]	The provision for credit losses and charge-offs for real estate secured receivables during the three months ended March 31, 2016 included $13 million related to the initial lower of amortized cost or fair value adjustment attributable to credit factors for receivables transferred to held for sale. See Note 2, "Receivables Held for Sale," for additional information.

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 422	$ (74)
Net change in unrealized gains (losses), net of tax, on:
Fair value option debt attributable to credit spread	(5)	0
Derivatives designated as cash flow hedges	0	8
Pension and postretirement benefit plan adjustments	(1)	(1)
Other comprehensive income (loss), net of tax	(6)	7
Total comprehensive income (loss)	$ 416	$ (67)

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions		Mar. 31, 2017	Dec. 31, 2016
Assets
Cash		$ 203	$ 128
Interest bearing deposits with banks		0	1,500
Securities purchased under agreements to resell		5,582	2,392
Receivables held for sale (including $716 million and $750 million at March 31, 2017 and December 31, 2016, respectively, collateralizing long-term debt)	[1],[2]	1,911	5,674
Real estate owned		26	31
Deferred income taxes, net		2,226	2,897
Bank owned life insurance		820	817
Other assets		997	427
Assets of discontinued operations		1	16
Total assets		11,766	13,882
Debt:
Due to affiliates (including $488 million and $485 million at March 31, 2017 and December 31, 2016, respectively, carried at fair value)		802	3,300
Long-term debt (including $1.3 billion and $1.3 billion at March 31, 2017 and December 31, 2016, respectively, carried at fair value and $371 million and $404 million at March 31, 2017 and December 31, 2016, respectively, collateralized by receivables)		4,320	4,340
Total debt		5,122	7,640
Derivative related liabilities		46	12
Liability for postretirement benefits		129	129
Other liabilities		601	610
Liabilities of discontinued operations		37	57
Total liabilities		5,935	8,448
Common equity:
Common stock ($0.01 par value, 100 shares authorized; 68 shares issued and outstanding at March 31, 2017 and December 31, 2016)		0	0
Additional paid-in-capital		23,115	23,138
Accumulated deficit		(18,283)	(18,728)
Accumulated other comprehensive income (loss)		(1)	24
Total common equity		4,831	4,434
Total equity		5,831	5,434
Total liabilities and equity		11,766	13,882
Series C Preferred Stock [Member]
Redeemable preferred stock:
Redeemable preferred stock		$ 1,000	$ 1,000
[1]	At March 31, 2017 and December 31, 2016, receivables held for sale includes $716 million and $750 million, respectively, of closed-end real estate secured receivables which are part of a collateralized funding transaction. These receivables will be sold when they are contractually released as collateral under the public trust and become available for sale. See Note 10, "Variable Interest Entities," for further discussion of our collateralized funding transactions.
[2]	At March 31, 2017 and December 31, 2016, contractually delinquent real estate secured receivables held for sale includes $203 million and $235 million, respectively, that are in the process of foreclosure.

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Receivables, collateralizing long-term debt	$ 716	$ 750
Credit loss reserves	0	(311)
Due to affiliate, carried at fair value	488	485
Long-term debt carried at fair value	1,326	1,317
Long-term debt collateralized by receivables	$ 371	$ 404
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	100	100
Common stock, shares issued (shares)	68	68
Common stock, shares outstanding (shares)	68	68
Series C Preferred Stock [Member]
Redeemable preferred stock, shares authorized (shares)	1,000	1,000
Redeemable preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Redeemable preferred stock, shares issued (shares)	1,000	1,000
Redeemable preferred stock, shares outstanding (shares)	1,000	1,000

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions		Total	Preferred stock	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive income (loss)	Adjustments for New Accounting Principle, Early Adoption [Member]Accumulated deficit	Adjustments for New Accounting Principle, Early Adoption [Member]Accumulated other comprehensive income (loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment to initially apply new accounting guidance	[1]	$ 0
Cumulative effect adjustment to initially apply new accounting guidance | Accounting Standards Update 2016-01 [Member]								$ 0	$ 0
Cumulative effect adjustment to initially apply new accounting guidance | Accounting Standards Update 2016-09 [Member]								0
Balance at beginning of period (As Previously Reported [Member]) at Dec. 31, 2015						$ (18,199)	$ 14
Balance at beginning of period at Dec. 31, 2015			$ 1,575	$ 0	$ 23,245	(18,199)	14
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends on preferred stock					(32)
Employee benefit plans, including transfers and other					2
Net income (loss)		(74)				(74)
Other comprehensive income (loss)		7					7
Total equity at end of period at Mar. 31, 2016		6,538	1,575	0	23,215	(18,273)	21
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total common shareholder's equity at end of period		4,963
Cumulative effect adjustment to initially apply new accounting guidance	[1]	(19)
Cumulative effect adjustment to initially apply new accounting guidance | Accounting Standards Update 2016-01 [Member]								19	$ (19)
Cumulative effect adjustment to initially apply new accounting guidance | Accounting Standards Update 2016-09 [Member]								$ 4
Total common shareholder's equity at end of period		4,434
Balance at beginning of period (As Previously Reported [Member]) at Dec. 31, 2016						(18,728)	24
Balance at beginning of period at Dec. 31, 2016		5,434	1,000	0	23,138	(18,705)	5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends on preferred stock					(22)
Employee benefit plans, including transfers and other					(1)
Net income (loss)		422				422
Other comprehensive income (loss)		(6)					(6)
Total equity at end of period at Mar. 31, 2017		5,831	$ 1,000	$ 0	$ 23,115	$ (18,283)	$ (1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total common shareholder's equity at end of period		$ 4,831
[1]	For information on the adoption of new accounting guidance related to fair value option debt attributable to our credit spreads, see Note 13, "New Accounting Pronouncements."

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net income (loss)		$ 422	$ (74)
Income (loss) from discontinued operations		4	(4)
Income (loss) from continuing operations		418	(70)
Adjustments to reconcile income (loss) from continuing operations to net cash used in operating activities:
Provision for credit losses		0	37	[1]
Lower of amortized cost or fair value adjustment on receivables held for sale		(113)	55
Gain on sale of real estate secured receivables		(617)	0
Gain on sale of real estate owned, including lower of amortized cost or fair value adjustments		(1)	(1)
Depreciation and amortization		0	1
Mark-to-market on debt designated at fair value and related derivatives		(3)	(8)
Foreign exchange and derivative movements on long-term debt and net change in non-fair value option related derivative assets and liabilities		43	65
Net change in other assets		103	(145)
Net change in other liabilities		(9)	(162)
Other, net		32	6
Cash used in operating activities – continuing operations		(147)	(222)
Cash provided by (used in) operating activities – discontinued operations		(1)	3
Cash used in operating activities		(148)	(219)
Cash flows from investing activities
Net change in securities purchased under agreements to resell		(3,190)	1,945
Net change in interest bearing deposits with banks		1,500	0
Receivables:
Net collections		171	510
Proceeds from sales of receivables		4,307	0
Proceeds from sales of real estate owned		17	39
Sales of properties and equipment, net		0	2
Cash provided by investing activities – continuing operations		2,805	2,496
Cash provided by investing activities – discontinued operations		0	0
Cash provided by investing activities		2,805	2,496
Debt:
Net change in due to affiliates		(2,500)	(151)
Long-term debt retired		(32)	(2,113)
Debt prepayment fees		(28)	0
Dividends		(22)	(32)
Cash used in financing activities – continuing operations		(2,582)	(2,296)
Cash used in financing activities – discontinued operations		0	0
Cash used in financing activities		(2,582)	(2,296)
Net change in cash		75	(19)
Cash at beginning of period	[2]	135	136
Cash at end of period	[3]	210	117
Supplemental Noncash Investing and Capital Activities:
Fair value of properties added to real estate owned		12	19
Transfer of receivables to held for sale		$ 0	$ 230
[1]	The provision for credit losses and charge-offs for real estate secured receivables during the three months ended March 31, 2016 included $13 million related to the initial lower of amortized cost or fair value adjustment attributable to credit factors for receivables transferred to held for sale. See Note 2, "Receivables Held for Sale," for additional information.
[2]	Cash at beginning of period includes $7 million and $12 million for discontinued operations at January 1, 2017 and 2016, respectively.
[3]	Cash at end of period includes $7 million and $11 million for discontinued operations at March 31, 2017 and 2016, respectively.

CONSOLIDATED STATEMENT OF CASH8

CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Statement of Cash Flows [Abstract]
Cash at beginning/end of period, discontinued operations	$ 7	$ 7	$ 11	$ 12

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation HSBC Finance Corporation is a wholly owned subsidiary of HSBC North America Holdings Inc. ("HSBC North America"), which is an indirect, wholly-owned subsidiary of HSBC Holdings plc ("HSBC" and, together with its subsidiaries, "HSBC Group"). The accompanying unaudited interim consolidated financial statements of HSBC Finance Corporation and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods have been made. HSBC Finance Corporation and its subsidiaries may also be referred to in this Form 10-Q as "we," "us" or "our." These unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016 (the "2016 Form 10-K"). Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The consolidated financial statements have been prepared on the basis that we will continue as a going concern. Such assertion contemplates our receivable sales program, the significant losses recognized and the challenges we anticipate to our operating results under prevailing and forecasted economic and business conditions. HSBC continues to be fully committed and has the capacity to continue to provide the necessary capital and liquidity to fund continuing operations. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. At March 31, 2017 , our consolidated balance sheet was impacted by a reclassification associated with an out of period adjustment which increased our current tax asset and reduced our deferred tax asset balance by $36 million . There was no impact to our consolidated statement of income (loss). Unless otherwise noted, information included in these notes to the consolidated financial statements relates to continuing operations for all periods presented. See Note 3, "Discontinued Operations," in our 2016 Form 10-K for further details of our discontinued operations. Interim results should not be considered indicative of results in future periods. We have one segment, Consumer, which consists of the run-off real estate secured receivable portfolio of our Consumer Lending and Mortgage Services businesses. As there are no reporting differences between our consolidated results and our segment results, we do not separately report segment results.

Receivables Held for Sale

Receivables Held for Sale	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Receivables Held for Sale	Receivables Held for Sale As discussed in prior filings, we established a receivable sales program in 2013 and have been engaged in an on-going evaluation of our operations as we seek to optimize our risk profile and cost structure as well as our liquidity, capital and funding requirements. As part of this on-going evaluation, in September 2016, we transferred all remaining real estate secured receivables classified as held for investment to held for sale. As a result, at March 31, 2017 and December 31, 2016, our entire receivable portfolio is classified as held for sale. Receivables held for sale, which are carried at the lower of amortized cost or fair value, are comprised of the following: March 31, 2017 December 31, 2016 (in millions) Real estate secured receivables held for sale: First lien $ 1,860 $ 4,699 Second lien 51 975 Total real estate secured receivables held for sale (1)(2) $ 1,911 $ 5,674 (1) At March 31, 2017 and December 31, 2016, receivables held for sale includes $716 million and $750 million , respectively, of closed-end real estate secured receivables which are part of a collateralized funding transaction. These receivables will be sold when they are contractually released as collateral under the public trust and become available for sale. See Note 10, "Variable Interest Entities," for further discussion of our collateralized funding transactions. (2) At March 31, 2017 and December 31, 2016 , contractually delinquent real estate secured receivables held for sale includes $203 million and $235 million , respectively, that are in the process of foreclosure. During the three months ended March 31, 2017 , we reversed $108 million of the lower of amortized cost or fair value adjustment recorded in prior periods related to changes in fair value which was reflected as a component of total other revenues in the consolidated statement of income (loss). This reversal of the lower of amortized cost or fair value adjustment recorded in prior periods reflects fair value changes resulting from a shift in mix in the pools of receivables held for sale due to identifying specific pools to be marketed during the first quarter of 2017 as well as improvements in the fair value of these receivables during the first quarter of 2017. We determine the fair value of receivables held for sale based on pools of receivables which are aggregated based on either similar risk characteristics or receivable pools being marketed. During the three months ended March 31, 2016 , we recorded an additional lower of amortized cost or fair value of $68 million related to changes in fair value as a result of a change in the estimated pricing on specific pools of receivables. We continue to make progress in our strategy to run-off and sell our real estate secured receivable portfolio. The following table summarizes receivables sold to third party investors during the three months ended March 31, 2017 . There were no receivable sales during the three months ended March 31, 2016 . Three Months Ended March 31, 2017 (in millions) Unpaid principal balance at the time of sale $ 4,363 Aggregate cash consideration received $ 4,307 Aggregate carrying value at the time of sale 3,665 Transaction costs 25 Gain on sale of real estate secured receivables $ 617 The following table summarizes the activity in receivables held for sale during the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 (in millions) Real estate secured receivables held for sale at beginning of period $ 5,674 $ 8,265 Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value (1)(2) — 230 Real estate secured receivable sales (3,665 ) — Lower of amortized cost or fair value adjustment on real estate secured receivables held for sale subsequent to initial transfer to held for sale 113 (51 ) Carrying value of real estate secured receivables held for sale transferred to real estate owned ("REO") (11 ) (14 ) Carrying value of real estate secured receivables held for sale settled through short sale (8 ) (8 ) Change in real estate secured receivable balance, including collections (192 ) (237 ) Real estate secured receivables held for sale at end of period (3) $ 1,911 $ 8,185 (1) During the three months ended March 31, 2016 , the initial lower of amortized cost or fair value adjustment recorded on receivables transferred into held for sale totaled $17 million . (2) Amount includes any accrued interest associated with the receivable. (3) Real estate secured receivables held for sale in the table above are presented net of the valuation allowance. During the three months ended March 31, 2016 , we transferred real estate secured receivables to held for sale with an unpaid principal balance (excluding accrued interest) of approximately $282 million at the time of transfer. The carrying value of these receivables prior to transfer after considering the fair value of the property less cost to sell was approximately $267 million including accrued interest. Credit loss reserves associated with these receivables totaled $20 million at the time of transfer to held for sale. During the three months ended March 31, 2016 , we recorded an initial lower of amortized cost or fair value adjustment of $17 million . Of this amount, $13 million was attributed to credit factors and recorded as a component of the provision for credit losses in the consolidated statement of income (loss) and $4 million was attributable to non-credit factors and recorded as a component of other revenues in the consolidated statement of income (loss). The following table provides a rollforward of our valuation allowance for the three months ended March 31, 2017 and 2016. See Note 11, "Fair Value Measurements," for a discussion of the factors impacting the fair value of these receivables. Three Months Ended March 31, 2017 2016 (in millions) Balance at beginning of period $ 174 $ 13 Initial valuation allowance for real estate secured receivables transferred to held for sale during the period — 4 Increase (decrease) in valuation allowance resulting from changes in fair value (108 ) 68 Change in valuation allowance for collections, charged-off, transferred to REO or short sale (5 ) 1 Balance at end of period $ 61 $ 86 The following table summarizes the components of the lower of amortized cost or fair value adjustment during the three months ended March 31, 2017 and 2016: Lower of Amortized Cost or Fair Value Adjustments Associated With (Income)/Expense Fair Value Settlement (1) Total (in millions) Three Months Ended March 31, 2017: Lower of amortized cost or fair value adjustment recorded through other revenues (2) $ (108 ) $ (5 ) $ (113 ) Total lower of amortized cost or fair value adjustment $ (108 ) $ (5 ) $ (113 ) Three Months Ended March 31, 2016: Lower of amortized cost or fair value adjustments recorded as a component of: Provision for credit losses (3) $ 13 $ — $ 13 Other revenues: Initial lower of amortized cost or fair value adjustment (4) 4 — 4 Subsequent to initial transfer to held for sale 68 (17 ) 51 Lower of amortized cost or fair value adjustment recorded through other revenues 72 (17 ) 55 Total lower of amortized cost or fair value adjustment $ 85 $ (17 ) $ 68 (1) Reflects receivable settlements due to either receivable payoffs (including short sales) or transfers of receivables to REO and reflects either a reversal of the non-credit fair value adjustment previously recorded on these receivables or an additional lower of amortized cost or fair value adjustment required at the time of settlement. (2) As all of our receivables are classified as held for sale at March 31, 2017 and December 31, 2016, for the three months ended March 31, 2017 and for all future periods, any lower of amortized cost or fair value adjustments will relate to either changes in fair value subsequent to classification as held for sale or settlements of receivables as discussed above. (3) Represents the portion of the initial lower of amortized cost or fair value adjustment attributable to credit factors which are recorded as provision for credit losses in the consolidated statement of income (loss). (4) Represents the portion of the initial lower of amortized cost or fair value adjustment attributable to non-credit factors which are recorded as a component of total other revenues in the consolidated statement income (loss) as it reflects the impact on value caused by current marketplace conditions including changes in interest rates.

Troubled Debt Restructures and

Troubled Debt Restructures and Nonperforming Receivables	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Troubled Debt Restructures and Nonperforming Receivables	Troubled Debt Restructures and Nonperforming Receivables Troubled Debt Restructurings We report substantially all loans modified as a result of a financial difficulty as troubled debt restructurings ("TDR Loans"), regardless of whether the modification was permanent or temporary, including all modifications with trial periods. Additionally, we report as TDR Loans all re-ages, except first time early stage delinquency re-ages where the customer has not been granted a prior re-age or modification. TDR Loans also include loans discharged under Chapter 7 bankruptcy and not re-affirmed. TDR Loans are considered to be impaired loans regardless of their accrual status. Modifications for real estate secured receivables currently may include changes to one or more terms of the loan, including, but not limited to, a change in interest rate, an extension of the amortization period, a reduction in payment amount, partial forgiveness or deferment of principal or other loan covenants. A substantial amount of our modifications involve interest rate reductions which lower the amount of interest income we are contractually entitled to receive for a period of time in future periods. By lowering the interest rate and making other changes to the loan terms, we believe we are able to increase the amount of cash flow that will ultimately be collected from the loan, given the borrower's financial condition. Re-aging is an account management action that results in the resetting of the contractual delinquency status of an account to current which generally requires the receipt of two qualifying payments. The following table presents information about our TDR Loans at March 31, 2017 and December 31, 2016. As all of our TDR Loans are classified as held for sale as of March 31, 2017 and December 31, 2016 and carried at the lower of amortized cost or fair value, there are no credit loss reserves associated with TDR Loans. March 31, 2017 December 31, 2016 (in millions) Carrying value $ 1,102 $ 1,691 Unpaid principal balance (1) 1,382 2,323 (1) At March 31, 2017 and December 31, 2016 , the unpaid principal balance reflected above includes $189 million and $271 million , respectively, which have received a reduction in the unpaid principal balance as part of an account management action. The following table provides additional information about the average balance and interest income recognized on TDR Loans. Three Months Ended March 31, 2017 2016 (in millions) Average balance of TDR Loans $ 1,453 $ 7,525 Interest income recognized on TDR Loans 20 157 Nonperforming Receivables The following table summarizes the status of receivables held for sale. Accruing Receivables Nonaccrual Receivables (1) Total (in millions) At March 31, 2017 $ 1,588 $ 323 $ 1,911 At December 31, 2016 5,293 381 5,674 (1) Nonaccrual receivables are all receivables which are 90 or more days contractually delinquent as well as second lien receivables (regardless of delinquency status) where the first lien receivable that we own or service is 90 or more days contractually delinquent. Nonaccrual receivables do not include receivables which have made qualifying payments and have been re-aged such that the contractual delinquency status has been reset to current. If a re-aged receivable subsequently experiences payment default and becomes 90 or more days contractually delinquent, it will be reported as nonaccrual. Nonaccrual receivables do not include receivables totaling $197 million and $252 million at March 31, 2017 and December 31, 2016 , respectively, which are less than 90 days contractually delinquent and not accruing interest. The following table provides additional information on nonaccrual receivables: Three Months Ended March 31, 2017 2016 (in millions) Interest income that would have been recorded if the nonaccrual receivable had been current in accordance with contractual terms during the period $ 8 $ 18 Interest income that was recorded on nonaccrual receivables during the period (1) — 2 (1) During the three months ended March 31, 2017 , interest income recorded on nonaccrual receivables was less than $1 million .

Credit Loss Reserves

Credit Loss Reserves	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Credit Loss Reserves	Credit Loss Reserves As discussed in prior filings, subsequent to the third quarter of 2016, all of our receivables are classified as held for sale and carried at the lower of amortized cost or fair value. As a result, we did not have any credit loss reserves during the three months ended March 31, 2017. The table below summarizes the changes in credit loss reserves for real estate secured receivables held for investment and the related receivable balance during the three months ended March 31, 2016 . Real Estate Secured First Lien Second Lien Total (in millions) Three Months Ended March 31, 2016: Credit loss reserve rollforward: Credit loss reserve balance at beginning of period $ 137 $ 174 $ 311 Provision for credit losses (1) 23 14 37 Net charge-offs: Charge-offs (1)(2) (53 ) (26 ) (79 ) Recoveries 2 1 3 Total net charge-offs (51 ) (25 ) (76 ) Credit loss reserve balance at end of period $ 109 $ 163 $ 272 Reserve components: Collectively evaluated for impairment $ 36 $ 30 $ 66 Individually evaluated for impairment (3) 63 133 196 Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell 10 — 10 Total credit loss reserves $ 109 $ 163 $ 272 Receivables held for investment: Collectively evaluated for impairment $ 6,028 $ 1,119 $ 7,147 Individually evaluated for impairment (3) 532 620 1,152 Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell 247 27 274 Total receivables held for investment $ 6,807 $ 1,766 $ 8,573 (1) The provision for credit losses and charge-offs for real estate secured receivables during the three months ended March 31, 2016 included $13 million related to the initial lower of amortized cost or fair value adjustment attributable to credit factors for receivables transferred to held for sale. See Note 2, "Receivables Held for Sale," for additional information. (2) For collateral dependent receivables that were transferred to held for sale, existing credit loss reserves at the time of transfer were recognized as a charge-off. We transferred to held for sale certain real estate secured receivables during the three months ended March 31, 2016 and, accordingly, we recognized the existing credit loss reserves on these receivables as additional charge-off totaling $20 million . (3) These amounts represent TDR Loans for which we evaluated reserves using a discounted cash flow methodology. Each loan was individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow impairment analysis was then applied to these groups of TDR Loans. The receivable balance above excluded TDR Loans held for investment that were carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $211 million at March 31, 2016 . The reserve component above excluded credit loss reserves totaling $9 million at March 31, 2016 for TDR Loans held for investment that were carried at the lower of amortized cost or fair value of the collateral less cost to sell.

Fair Value Option

Fair Value Option	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Option	Fair Value Option We have elected the fair value option for certain issuances of our fixed rate debt in order to align our accounting treatment with that of HSBC. The following table summarizes fixed rate debt issuances accounted for under fair value option reporting ("FVO"): March 31, 2017 December 31, 2016 (in millions) Fixed rate debt accounted for under FVO reported in: Long-term debt $ 1,326 $ 1,317 Due to affiliates 488 485 Total fixed rate debt accounted for under FVO $ 1,814 $ 1,802 Unpaid principal balance of fixed rate debt accounted for under FVO (1) $ 1,733 $ 1,712 (1) Balance includes a foreign currency translation adjustment relating to our foreign denominated FVO debt which decreased the debt balance by $289 million at March 31, 2017 and decreased the debt balance by $310 million at December 31, 2016 . We determine the fair value of the fixed rate debt accounted for under FVO through the use of a third party pricing service. Such fair value represents the full market price (including credit and interest rate impacts) based on observable market data for the same or similar debt instruments. See Note 11, "Fair Value Measurements," for a description of the methods and significant assumptions used to estimate the fair value of our fixed rate debt accounted for under FVO. The following table summarizes the components of the gain on debt designated at fair value and related derivatives reflected in the consolidated statement of income (loss) for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 (in millions) Mark-to-market on debt designated at fair value (1) : Interest rate component $ 18 $ 6 Credit risk component (2) — 11 Total mark-to-market on debt designated at fair value 18 17 Mark-to-market on the related derivatives (1)(3) (15 ) (9 ) Net realized gains on the related derivatives (1) 9 16 Gain on debt designated at fair value and related derivatives $ 12 $ 24 (1) The derivatives associated with debt designated at fair value are economic hedges but do not qualify for hedge accounting. See Note 6, "Derivative Financial Instruments," for additional discussion of these non-qualifying hedges. (2) As discussed below and more fully in Note 13, "New Accounting Pronouncements," beginning January 1, 2017, the fair value movement on fair value option debt attributable to our credit spreads is recorded in common equity as a component of other comprehensive income. For the three months ended March 31, 2017 , the fair value movement on fair value option debt attributable to our credit spreads was a loss $8 million . (3) Mark-to-market on debt designated at fair value and related derivatives excludes market value changes due to fluctuations in foreign currency exchange rates. Foreign currency translation gains (losses) recorded in derivative related income (expense) associated with debt designated at fair value was a loss of $21 million and a loss of $66 million for the three months ended March 31, 2017 and 2016, respectively. Offsetting gains (losses) recorded in derivative related income (expense) associated with the related derivatives was a gain of $21 million and a gain of $66 million for the three months ended March 31, 2017 and 2016, respectively. Prior to January 1, 2017, changes in the fair value of fair value option debt and the value of the related derivatives, including changes in fair value related to interest rates, credit and other risks as well as any realized gains or losses on those derivatives, were reported in gain on debt designated at fair value and related derivatives in the consolidated statement of income (loss). As discussed more fully in Note 13, "New Accounting Pronouncements," beginning January 1, 2017, the fair value movement on fair value debt attributable to our credit spreads is recorded in common equity as a component of other comprehensive income. Differences arise between the movement in the fair value of the debt and the fair value of the related derivative due to the different credit characteristics and differences in the calculation of fair value for debt and derivatives. The size and direction of the accounting consequences of such changes can be volatile from period to period but do not alter the cash flows intended as part of our interest rate management strategy. On a cumulative basis, we have recorded fair value option adjustments which increased the value of our long-term debt and due to affiliates balances in total by $81 million and $90 million at March 31, 2017 and December 31, 2016 , respectively.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Our business activities involve analysis, evaluation, acceptance and management of some degree of risk or combination of risks. Accordingly, we have comprehensive risk management policies to address potential financial risks, which include credit risk, liquidity risk, market risk, and operational risks. Our risk management policy is designed to identify and analyze these risks, to set appropriate limits and controls, and to monitor the risks and limits continually by means of reliable and up-to-date administrative and information systems. Our risk management policies are primarily carried out in accordance with practice and limits set by the HSBC Group Management Board. The HSBC North America Asset Liability Committee ("HSBC North America ALCO") meets regularly to review risks and approve appropriate risk management strategies within the limits established by the HSBC Group Management Board. Additionally, the Risk Committee of our Board of Directors receives regular reports on our interest rate and liquidity risk positions in relation to the established limits. In accordance with the policies and strategies established by HSBC North America ALCO, in the normal course of business, we historically entered into various transactions involving derivative financial instruments. These derivative financial instruments primarily are used as economic hedges to manage risk. Objectives for Holding Derivative Financial Instruments Market risk (which includes interest rate and foreign currency exchange risks) is the possibility that a change in underlying market rate inputs will cause a financial instrument to decrease in value or become more costly to settle. Prior to our ceasing originations in our Consumer Lending business and ceasing loan purchase activities in our Mortgage Services business, customer demand for our loan products shifted between fixed rate and floating rate products, based on market conditions and preferences. These shifts in loan products resulted in different funding strategies and produced different interest rate risk exposures. Additionally, the mix of receivables on our balance sheet and the corresponding market risk is changing as we manage the liquidation of our receivable portfolio. We maintain an overall risk management strategy that utilizes derivative financial instruments to mitigate our exposure to fluctuations caused by changes in currency exchange rates related to our debt liabilities. We manage our exposure to foreign currency exchange risk primarily through the use of cross currency interest rate swaps. Historically, we managed our exposure to interest rate risk through the use of interest rate swaps with the main objective of managing the interest rate volatility due to a mismatch in the duration of our assets and liabilities. We have entered into currency swaps to convert both principal and interest payments on debt issued in one currency to the appropriate functional currency. Interest rate swaps are contractual agreements between two counterparties for the exchange of periodic interest payments generally based on a notional principal amount and agreed-upon fixed or floating rates. The majority of our interest rate swaps were used to manage our exposure to changes in interest rates by converting floating rate debt to fixed rate or by converting fixed rate debt to floating rate. To manage our exposure to changes in interest rates, we entered into currency swaps and historically interest rate swap agreements which have been designated as cash flow hedges under derivative accounting principles, or are treated as non-qualifying hedges. We currently utilize the long-haul method to assess effectiveness of all derivatives designated as hedges. We do not manage credit risk or the changes in fair value due to the changes in credit risk by entering into derivative financial instruments such as credit derivatives or credit default swaps. Credit Risk of Derivatives By utilizing derivative financial instruments, we are exposed to counterparty credit risk. Counterparty credit risk is the risk that the counterparty to a transaction fails to perform according to the terms of the contract. We manage the counterparty credit (or repayment) risk in derivative instruments through established credit approvals, risk control limits, collateral, and ongoing monitoring procedures. We utilize HSBC affiliates as the provider of our derivatives. We have never suffered a loss due to counterparty credit failure. At March 31, 2017 and December 31, 2016 , we had derivative contracts for our continuing operations with a notional amount of $1.8 billion and $1.8 billion , respectively, which are outstanding with HSBC Bank USA, National Association (together with its subsidiaries, "HSBC Bank USA"). Derivative financial instruments are generally expressed in terms of notional principal or contract amounts which are much larger than the amounts potentially at risk for nonpayment by counterparties. Derivative agreements require that payments be made to, or received from, the counterparty when the fair value of the agreement reaches a certain level. When the fair value of our agreements with the affiliate counterparty requires the posting of collateral, it is provided in either the form of cash and recorded on the balance sheet, consistent with third party arrangements, or in the form of securities which are not recorded on our balance sheet. The fair value of our agreements with the affiliate counterparty required us to provide collateral to the affiliate of $274 million at March 31, 2017 and $317 million at December 31, 2016 , all of which was provided in cash. These amounts are offset against the fair value amount recognized for derivative instruments that have been offset under the same master netting arrangement and recorded in our balance sheet as derivative financial assets or derivative related liabilities which are included as a component of other assets and other liabilities, respectively. The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting and collateral, and therefore are not representative of our exposure. The table below also presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet. March 31, 2017 December 31, 2016 Derivative Financial Assets Derivative Financial Liabilities Derivative Financial Assets Derivative Financial Liabilities (in millions) Derivatives (1) Derivatives accounted for as cash flow hedges associated with debt: Currency swaps $ — $ (54 ) $ — $ (58 ) Cash flow hedges — (54 ) — (58 ) Non-qualifying hedge activities: Derivatives associated with debt carried at fair value: Cross currency interest rate swaps 21 (287 ) 15 (286 ) Derivatives associated with debt carried at fair value 21 (287 ) 15 (286 ) Total derivatives 21 (341 ) 15 (344 ) Less: Gross amounts offset in the balance sheet (2) (21 ) 295 (15 ) 332 Net amounts of derivative financial assets and liabilities presented in the balance sheet (3) $ — $ (46 ) $ — $ (12 ) (1) All of our derivatives are bilateral over-the-counter derivatives. (2) Represents the netting of derivative receivable and payable balances for the same counterparty under an enforceable netting agreement. Gross amounts offset in the balance sheet includes cash collateral paid of $274 million at March 31, 2017 and $317 million at December 31, 2016 . At March 31, 2017 and December 31, 2016 , we did not have any financial instrument collateral received/posted. (3) At March 31, 2017 and December 31, 2016 , we had not received any cash not subject to an enforceable master netting agreement. Fair Value Hedges At March 31, 2017 and December 31, 2016 , we do not have any active fair value hedges. We recorded fair value adjustments to the carrying value of our debt for terminated fair value hedges which decreased the debt balance by $14 million at March 31, 2017 and $15 million at December 31, 2016 . Cash Flow Hedges Cash flow hedges include currency swaps to convert debt issued from one currency into U.S. dollar fixed rate debt and have historically also included interest rate swaps to convert our variable rate debt to fixed rate debt by fixing future interest rate resets of floating rate debt. Gains and losses on derivative instruments designated as cash flow hedges are reported in accumulated other comprehensive income (loss) and totaled losses of less than $1 million at both March 31, 2017 and December 31, 2016 . We expect less than $1 million of currently unrealized net losses will be reclassified to earnings within one year. However, these reclassified unrealized losses will be offset by decreased interest expense associated with the variable cash flows of the hedged items and will result in no significant impact to our earnings. The following table provides the gain or loss recorded on our cash flow hedging relationships. Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Reclassed From AOCI into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on the Derivative(Ineffective Portion) Gain (Loss) Recognized In Income on Derivative (Ineffective Portion) 2017 2016 2017 2016 2017 2016 (in millions) (in millions) (in millions) Three Months Ended March 31, Interest rate swaps $ — $ 11 Interest expense $ — $ — Derivative related income (expense) $ — $ — Currency swaps — — Interest expense — (3 ) Derivative related income (expense) 2 4 Total $ — $ 11 $ — $ (3 ) $ 2 $ 4 Non-Qualifying Hedging Activities As discussed in prior filings, during 2016 we terminated all of the interest rate swaps in our portfolio of non-qualifying hedges which we had previously used to minimize our exposure to changes in interest rates. Accordingly, there was no derivative related income (expense) for the three months ended March 31, 2017 . Derivative related expense for interest rate contracts for the three months ended March 31, 2016 totaled $119 million . We have elected the fair value option for certain issuances of our fixed rate debt and have entered into currency swaps and historically interest rate swaps related to debt carried at fair value. The currency swaps and historically the interest rate swaps associated with this debt are non-qualifying hedges but are considered economic hedges and realized gains and losses are reported as gain on debt designated at fair value and related derivatives within other revenues. The derivatives related to fair value option debt are included in the notional amount of derivative contracts table below. The following table provides the gain or loss recorded on the derivatives related to fair value option debt. See Note 5, "Fair Value Option," for further discussion. Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Derivative Related Income (Expense) Three Months Ended March 31, 2017 2016 (in millions) Cross currency interest rate contracts Gain (loss) on debt designated at fair value and related derivatives $ (6 ) $ 7 Total $ (6 ) $ 7 Notional Amount of Derivative Contracts The following table provides the notional amounts of derivative contracts. March 31, 2017 December 31, 2016 (in millions) Derivatives designated as hedging instruments: Currency swaps $ 203 $ 203 Non-qualifying hedges: Derivatives associated with debt carried at fair value: Cross currency interest rate swaps 1,562 1,562 Total $ 1,765 $ 1,765

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) ("AOCI") includes certain items that are reported directly within a separate component of equity. The following table presents changes in accumulated other comprehensive income (loss) balances. Three Months Ended March 31, 2017 2016 (in millions) Unrealized gains (losses) on fair value option debt attributable to credit: Balance at beginning of period, as previously reported $ — $ — Cumulative effect adjustment to initially apply new accounting guidance for fair value option debt attributable to credit, net of tax of $(11) million and $- million, respectively (1) (19 ) — Balance at beginning of period, adjusted (19 ) — Other comprehensive loss for period: Net loss arising during period, net of tax of $(3) million and $- million, respectively (5 ) — Total other comprehensive loss for period (5 ) — Balance at end of period (24 ) — Unrealized gains (losses) on cash flow hedging instruments: Balance at beginning of period — (15 ) Other comprehensive income for period: Net gains arising during period, net of tax of $- million and $4 million, respectively — 7 Reclassification adjustment for losses realized in net income, net of tax of $- million and $2 million, respectively (2) — 1 Total other comprehensive income for period — 8 Balance at end of period — (7 ) Pension and postretirement benefit plan liability: Balance at beginning of period 24 29 Other comprehensive loss for period: Reclassification adjustment for (gains) losses realized in net income, net of tax of $(1) million and $(1) million, respectively (3) (1 ) (1 ) Total other comprehensive loss for period (1 ) (1 ) Balance at end of period 23 28 Total accumulated other comprehensive income (loss) at end of period $ (1 ) $ 21 (1) For information on the adoption of new accounting guidance related to fair value option debt attributable to our credit spreads, see Note 13, "New Accounting Pronouncements." (2) The amounts reclassified relate to currency swaps and are included as a component of interest expense in our consolidated statement of income (loss). (3) The amounts reclassified are included as a component of salaries and employee benefits in our consolidated statement of income (loss).

Pension and Other Postretiremen

Pension and Other Postretirement Benefits	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
Pension and Other Postretirement Benefits	Pension and Other Postretirement Benefits Defined Benefit Pension Plan The table below reflects the portion of pension expense and its related components of the HSBC North America Pension Plan which has been allocated to us and is recorded in our consolidated statement of income (loss). We have not been allocated any portion of the Plan's net pension liability. Three Months Ended March 31, 2017 2016 (in millions) Interest cost on projected benefit obligation $ 12 $ 12 Expected return on plan assets (14 ) (14 ) Amortization of net actuarial loss 6 7 Administrative costs 1 1 Pension expense $ 5 $ 6 Postretirement Plans Other Than Pensions Our employees also participate in plans which provide medical and life insurance benefits to retirees and eligible dependents. These plans cover substantially all employees who meet certain age and vested service requirements. We have instituted dollar limits on our payments under the plans to control the cost of future medical benefits. The components of our net postretirement benefit cost are as follows: Three Months Ended March 31, 2017 2016 (in millions) Interest cost $ 1 $ 1 Amortization of reduction in liability resulting from plan amendment (2 ) (2 ) Net periodic postretirement benefit cost $ (1 ) $ (1 )

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In the normal course of business, we conduct transactions with HSBC and its subsidiaries. HSBC policy requires that these transactions occur at prevailing market rates and terms and include funding arrangements, derivatives, servicing arrangements, information technology, centralized support services, item and statement processing services, banking and other miscellaneous services. 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: March 31, 2017 December 31, 2016 (in millions) Assets: Cash $ 203 $ 128 Interest bearing deposits with banks — 1,500 Securities purchased under agreements to resell (1) 5,582 2,392 Other assets 272 114 Total assets $ 6,057 $ 4,134 Liabilities: Due to affiliates (2) $ 802 $ 3,300 Other liabilities 5 41 Total liabilities $ 807 $ 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 March 31, 2017 2016 (in millions) Income/(Expense): Interest income from HSBC affiliates $ 9 $ 1 Interest expense paid to HSBC affiliates (1) (29 ) (75 ) Net interest income (expense) $ (20 ) $ (74 ) Gain on FVO debt with affiliate $ 3 $ — Servicing and other fees from (to) HSBC affiliates (27 ) 4 Support services from HSBC affiliates (23 ) (42 ) 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." Funding Arrangements with HSBC Affiliates: All of our ongoing funding requirements have been integrated into the overall HSBC North America funding plans and our funding requirements are currently sourced primarily through HSBC USA Inc. ("HSBC USA") or HSBC North America. Due to affiliates consists of the following: March 31, 2017 December 31, 2016 (in millions) HSBC USA Inc. $ — $ 2,500 HSBC Holdings plc (includes $488 million and $485 million at March 31, 2017 and December 31, 2016 carried at fair value, respectively) 802 800 Due to affiliates $ 802 $ 3,300 HSBC USA Inc. - We have a $5.0 billion , 364 -day uncommitted unsecured revolving credit agreement with HSBC USA, which will expire during the fourth quarter of 2017. The credit agreement allows for borrowings with maturities of up to 5 years. In March 2017, we prepaid the entire outstanding balance on this credit agreement of $2.5 billion and incurred a loss on extinguishment of debt of $28 million which is included as a component of servicing and other fees from (to) HSBC affiliates in our consolidated statement of income (loss). HSBC Holdings plc - We have a public subordinated debt issue with a carrying amount of $3.0 billion which matures in 2021. Of this amount, HSBC Holdings plc holds $802 million at March 31, 2017 and $800 million at December 31, 2016 . We have a $1.0 billion , 364 -day uncommitted revolving credit facility with HSBC North America, which expires in January 2018. At March 31, 2017 and December 31, 2016, there are no outstanding balances under this credit facility. As previously discussed, we maintain an overall risk management strategy that utilizes interest rate and currency derivative financial instruments to mitigate our exposure to fluctuations caused by changes in interest rates and currency exchange rates related to third party debt liabilities. HSBC Bank USA is our counterparty in these derivative transactions. The notional amount of the derivative contracts outstanding with HSBC Bank USA totaled $1.8 billion and $1.8 billion at March 31, 2017 and December 31, 2016 , respectively. The fair value of our agreements with HSBC Bank USA required us to provide collateral to HSBC Bank USA of $274 million at March 31, 2017 and $317 million at December 31, 2016 , all of which was provided in cash. See Note 6, "Derivative Financial Instruments," for additional information about our derivative portfolio. In addition to the lending arrangements discussed above, our parent company holds 1,000 shares of Series C Preferred Stock. Dividends paid on the Series C Preferred Stock totaled $22 million and $22 million during the three months ended March 31, 2017 and 2016, respectively. During periods in which there is an accumulated deficit, dividends on the Series C preferred stock are paid from additional paid-in-capital. At December 31, 2016 , we had a deposit totaling $1,500 million with HSBC Bank USA at current market rates. We did not have any deposits with HSBC Bank USA at March 31, 2017 . Interest income earned on deposits with HSBC Bank USA was included in interest income from HSBC affiliates in the table above and was insignificant during three months ended March 31, 2017 and 2016. Services Provided Between HSBC Affiliates: Under multiple service level agreements, we provide services to and receive services from various HSBC affiliates. The following summarizes these activities: • HSBC Securities (USA) Inc. ("HSI") provides transaction assistance for our receivable sales program, including receivable valuation and other transaction related activities. We pay HSI a fee for these services for each sales transaction based on the unpaid principal balance of the receivables sold. Fees paid to HSI for these services totaled $5 million during the three months ended March 31, 2017 . There were no fees paid during the three months ended March 31, 2016 . The fees paid to HSI for these services are reported as a component of Gain (loss) on sale of real estate secured receivables. • Servicing activities for real estate secured receivables across North America are performed both by us and HSBC Bank USA. As a result, we receive servicing fees from HSBC Bank USA for services performed on their behalf and pay servicing fees to HSBC Bank USA for services performed on our behalf. The fees we receive from HSBC Bank USA are reported in Servicing and other fees from (to) HSBC affiliates. This includes fees received for servicing real estate secured receivables (with a carrying amount of $93 million and $559 million at March 31, 2017 and December 31, 2016 , respectively) that we sold to HSBC Bank USA in 2003 and 2004 . Fees we pay to HSBC Bank USA are reported in Support services from HSBC affiliates. • We also provide various services to HSBC Bank USA, including processing activities and other operational and administrative support. Fees received for these services are included in Servicing and other fees from (to) HSBC affiliates. • HSBC North America's technology and certain centralized support services including human resources, corporate affairs, risk management, legal, compliance, tax, finance and other shared services are centralized within HSBC Technology & Services (USA) Inc. ("HTSU"). HTSU also provides certain item processing and statement processing activities for us. The fees we pay HTSU for the centralized support services and processing activities are included in Support services from HSBC affiliates. We also receive fees from HTSU for providing certain administrative services to them as well as receiving rental revenue from HTSU for certain office space. The fees and rental revenue we receive from HTSU are included in Servicing and other fees from (to) HSBC affiliates. • We use HSBC Global Services Limited, an HSBC affiliate located outside of the United States, to provide various support services to our operations including among other areas, customer service, systems, collection and accounting functions. The expenses related to these services are included in Support services from HSBC affiliates. • Banking services and other miscellaneous services are provided by other subsidiaries of HSBC, including HSBC Bank USA, which are included in Support services from HSBC affiliates. Transactions with HSBC Affiliates involving our Discontinued Operations: In December 2016, we entered into a derivative instrument with HSBC USA in connection with the sale of Visa Class B Shares to a third party. The notional amount of this derivative contract totaled $58 million and $50 million at March 31, 2017 and December 31, 2016 , respectively. The fair value of the derivative related liability with HSBC USA Inc. was $6 million and $5 million at March 31, 2017 and December 31, 2016 , respectively. During the three months ended March 31, 2017 , we recorded derivative related expense of $1 million which was recorded as a component of income (loss) from discontinued operations. See Note 3, "Discontinued Operations," in our 2016 Form 10-K for additional information about the sale of the Visa Class B Shares and this derivative instrument.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Mar. 31, 2017
Disclosure Variable Interest Entities Summary Of Assets And Liabilities Of Consolidated Secured Financing V I Es [Abstract]
Variable Interest Entities	Variable Interest Entities We consolidate variable interest entities ("VIE") in which we hold a controlling financial interest as evidenced by the power to direct the activities of a VIE that most significantly impact its economic performance and the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE and therefore are deemed to be the primary beneficiary. See Note 17, "Variable Interest Entities," in our 2016 Form 10-K for additional information regarding VIEs. Consolidated VIEs Historically, we have organized special purpose entities ("SPEs") primarily to meet our funding needs through collateralized funding transactions. As part of these transactions, we transferred certain receivables to these trusts which in turn issued debt instruments collateralized by the transferred receivables. The entities used in these transactions are VIEs. As we are the servicer of the assets of these trusts and have retained the benefits and risks, we determined that we are the primary beneficiary of these trusts. Accordingly, we consolidate these entities and report the debt securities issued by them as secured financings in long-term debt. As a result, all receivables transferred in these secured financings remained and continue to remain on our balance sheet and the debt securities issued by them have remained and continue to be included in long-term debt. As all of our ongoing funding requirements have been integrated into the overall HSBC North America funding plans, we no longer use collateralized funding transactions to meet our funding needs. The assets and liabilities of the consolidated secured financing VIEs consisted of the following at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Consolidated Assets Consolidated Liabilities Consolidated Assets Consolidated Liabilities (in millions) Real estate collateralized funding vehicles: Receivables held for sale $ 716 $ — $ 750 $ — Other liabilities — (33 ) — (11 ) Long-term debt — 371 — 404 Total $ 716 $ 338 $ 750 $ 393 The assets of the consolidated VIEs serve as collateral for the obligations of the VIEs. The holders of the debt securities issued by these vehicles have no recourse to our general assets. Unconsolidated VIEs We do not have any unconsolidated VIEs.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Accounting principles related to fair value measurements provide a framework for measuring fair value and focus on an exit price that would be received to sell an asset or paid to transfer a liability in the principal market (or in the absence of the principal market, the most advantageous market) accessible in an orderly transaction between willing market participants (the "Fair Value Framework"). Where required by the applicable accounting standards, assets and liabilities are measured at fair value using the "highest and best use" valuation premise. Fair value measurement guidance clarifies that financial instruments do not have alternative use and, as such, the fair value of financial instruments should be determined using an "in-exchange" valuation premise. Although the fair value measurement literature provides a valuation exception and permits an entity to measure the fair value of a group of financial assets and financial liabilities with offsetting credit risk and/or market risks based on the exit price it would receive or pay to transfer the net risk exposure of a group of assets or liabilities if certain conditions are met, we have not elected to make fair value adjustments to a group of derivative instruments with offsetting credit and market risks. Fair Value Adjustments The best evidence of fair value is quoted market price in an actively traded market, where available. In the event listed price or market quotes are not available, valuation techniques that incorporate relevant transaction data and market parameters reflecting the attributes of the asset or liability under consideration are applied. Where applicable, fair value adjustments are made to ensure the financial instruments are appropriately recorded at fair value. The fair value adjustments reflect the risks associated with the products, contractual terms of the transactions, and the liquidity of the markets in which the transactions occur. Credit Risk Adjustment The credit risk adjustment is an adjustment to a group of financial assets or financial liabilities to reflect the credit quality of the parties to the transaction in arriving at fair value. A credit valuation adjustment to a financial asset is required to reflect the default risk of the counterparty. Where applicable, we take into consideration the credit risk mitigating arrangements including collateral agreements and master netting arrangements in estimating the credit risk adjustments. Valuation Control Framework A control framework has been established which is designed to ensure that fair values are validated by a function independent of the risk-taker. To that end, the ultimate responsibility for the measurement of fair values rests with the HSBC U.S. Valuation Committee. The HSBC U.S. Valuation Committee establishes policies and procedures to ensure appropriate valuations. Fair values for long-term debt for which we have elected fair value option are measured by a third party valuation source (pricing service) by reference to external quotations on the identical or similar instruments. Once fair values have been obtained from the third party valuation source, an independent price validation process is performed and reviewed by the HSBC U.S. Valuation Committee. For price validation purposes, we obtain quotations from at least one other independent pricing source for each financial instrument, where possible. We consider the following factors in determining fair values: Ÿ similarities between the asset or the liability under consideration and the asset or liability for which quotation is received; Ÿ collaboration of pricing by reference to other independent market data such as market transactions and relevant benchmark indices; Ÿ whether the security is traded in an active or inactive market; Ÿ consistency among different pricing sources; Ÿ the valuation approach and the methodologies used by the independent pricing sources in determining fair value; Ÿ the elapsed time between the date to which the market data relates and the measurement date; and Ÿ the manner in which the fair value information is sourced. Greater weight is given to quotations of instruments with recent market transactions, pricing quotes from dealers who stand ready to transact, quotations provided by market-makers who originally underwrote such instruments, and market consensus pricing based on inputs from a large number of participants. Any significant discrepancies among the external quotations are reviewed by management and adjustments to fair values are recorded where appropriate. Fair values for derivatives are determined by management using valuation techniques, valuation models and inputs that are developed, reviewed, validated and approved by the Markets Independent Model Review Team of an HSBC affiliate. The models used apply appropriate control processes and procedures to ensure that the derived inputs are used to value only those instruments that share similar risk to the relevant benchmark indexes and therefore demonstrate a similar response to market factors. We have various controls over our valuation process and procedures for receivables held for sale. As these fair values are generally determined using value estimates from third party and affiliate valuation specialists, the controls may include analytical reviews of quarterly value trends, corroboration of inputs by observable market data, direct discussion with potential investors and results of actual sales of such receivable, all of which are submitted to the HSBC U.S. Valuation Committee for review. Fair Value of Financial Instruments The fair value estimates, methods and assumptions set forth below for our financial instruments, including those financial instruments carried at cost, are made solely to comply with disclosures required by generally accepted accounting principles in the United States and should be read in conjunction with the financial statements and notes included in this Form 10-Q. The following table summarizes the carrying value and estimated fair value of our financial instruments at March 31, 2017 and December 31, 2016 . March 31, 2017 Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (in millions) Financial assets: Cash $ 203 $ 203 $ 203 $ — $ — Securities purchased under agreements to resell 5,582 5,582 — 5,582 — Real estate secured receivables held for sale 1,911 1,921 — — 1,921 Due from affiliates 272 272 — 272 — Financial liabilities: Due to affiliates carried at fair value 488 488 — 488 — Due to affiliates not carried at fair value 314 338 — 338 — Long-term debt carried at fair value 1,326 1,326 — 1,326 — Long-term debt not carried at fair value 2,994 3,344 — 3,344 — Derivative financial liabilities 46 46 — 46 — December 31, 2016 Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (in millions) Financial assets: Cash $ 128 $ 128 $ 128 $ — $ — Interest bearing deposits with banks 1,500 1,500 1,500 — — Securities purchased under agreements to resell 2,392 2,392 — 2,392 — Real estate secured receivables held for sale 5,674 6,129 — — 6,129 Due from affiliates 114 114 — 114 — Financial liabilities: Due to affiliates carried at fair value 485 485 — 485 — Due to affiliates not carried at fair value 2,815 2,875 — 2,875 — Long-term debt carried at fair value 1,317 1,317 — 1,317 — Long-term debt not carried at fair value 3,023 3,359 — 3,359 — Derivative financial liabilities 12 12 — 12 — Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following table presents information about our assets and liabilities measured at fair value on a recurring basis at March 31, 2017 and December 31, 2016 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting (1) Total of Assets (Liabilities) Measured at Fair Value (in millions) March 31, 2017: Derivative financial assets: Currency swaps $ — $ 21 $ — $ — $ 21 Derivative netting — — — (21 ) (21 ) Total derivative financial assets — 21 — (21 ) — Total assets $ — $ 21 $ — $ (21 ) $ — Due to affiliates carried at fair value $ — $ (488 ) $ — $ — $ (488 ) Long-term debt carried at fair value — (1,326 ) — — (1,326 ) Derivative related liabilities: Currency swaps — (341 ) — — (341 ) Derivative netting — — — 295 295 Total derivative related liabilities — (341 ) — 295 (46 ) Total liabilities $ — $ (2,155 ) $ — $ 295 $ (1,860 ) December 31, 2016: Derivative financial assets: Currency swaps $ — $ 15 $ — $ — $ 15 Derivative netting — — — (15 ) (15 ) Total derivative financial assets — 15 — (15 ) — Total assets $ — $ 15 $ — $ (15 ) $ — Due to affiliates carried at fair value $ — $ (485 ) $ — $ — $ (485 ) Long-term debt carried at fair value — (1,317 ) — — (1,317 ) Derivative related liabilities: Currency swaps — (344 ) — — (344 ) Derivative netting — — — 332 332 Total derivative related liabilities — (344 ) — 332 (12 ) Total liabilities $ — $ (2,146 ) $ — $ 332 $ (1,814 ) (1) Represents counterparty and swap collateral netting which allow the offsetting of amounts relating to certain contracts when certain conditions are met. Significant Transfers Between Level 1 and Level 2 There were no transfers between Level 1 and Level 2 for assets and liabilities recorded at fair value on a recurring basis during the three months ended March 31, 2017 and 2016. Information on Level 3 Assets and Liabilities There were no assets or liabilities recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2017 and 2016. Assets and Liabilities Recorded at Fair Value on a Non-recurring Basis The following table presents information about our assets and liabilities measured at fair value on a non-recurring basis at March 31, 2017 and 2016, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. Certain of the fair values in the table below were not obtained as of March 31, 2017 or 2016 but during the periods then ended. See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2016 Form 10-K as well as the summary of our valuation techniques below for discussion of our policy in measuring fair value. Non-Recurring Fair Value Measurements March 31, 2017 Total Gains Level 1 Level 2 Level 3 Total (in millions) Receivables held for sale $ — $ — $ 1,911 $ 1,911 $ 113 Real estate owned (1) — 26 — 26 (2 ) Total assets at fair value on a non-recurring basis $ — $ 26 $ 1,911 $ 1,937 $ 111 Non-Recurring Fair Value Measurements Total Gains Level 1 Level 2 Level 3 Total (in millions) Receivables held for sale $ — $ 1,299 $ 6,886 $ 8,185 $ (68 ) Receivables held for investment carried at the lower of amortized cost or fair value of the collateral less cost to sell (2) — 274 — 274 (26 ) Real estate owned (1) — 80 — 80 (5 ) Total assets at fair value on a non-recurring basis $ — $ 1,653 $ 6,886 $ 8,539 $ (99 ) (1) Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value of the underlying asset unadjusted for transaction costs. (2) Total gains (losses) for the three months ended March 31, 2016 include amounts recorded on receivables that were subsequently transferred to held for sale. Significant Transfers Between Level 1 and Level 2 There were no transfers between Level 1 and Level 2 for assets and liabilities recorded at fair value on a non-recurring basis during the three months ended March 31, 2017 and 2016. Significant Transfers Between Level 2 and Level 3 We transferred real estate secured receivables held for sale from Level 3 to Level 2 prior to the sale of these receivables totaling $3,665 million during the three months ended March 31, 2017 compared with $1,299 million during the three months ended March 31, 2016 . Receivables held for sale are reclassified from Level 3 to Level 2 upon acceptance of a final offer from a third party to purchase a distinct pool of receivables for a specified purchase price on a specific date. The following table presents quantitative information about non-recurring fair value measurements of assets and liabilities classified as Level 3 in the fair value hierarchy at March 31, 2017 and December 31, 2016 : Fair Value Range of Inputs Financial Instrument Type March 31, 2017 Dec. 31, 2016 Valuation Technique Significant Unobservable Inputs March 31, 2017 December 31, 2016 (in millions) Receivables held for sale $ 1,911 $ 5,674 Third party appraisal valuation based on Collateral loss severity rates (1) 0 % - 100% 0 % - 100% estimated loss severities, including collateral values, cash flows and Expenses incurred through collateral disposition 5 % - 10% 5 % - 10% market discount rate Market discount rate 4 % - 14% 4 % - 14% (1) At March 31, 2017 and December 31, 2016 , the weighted average collateral loss severity rate was 43 percent and 51 percent , respectively, taking into consideration both expected net cash flows as well as current collateral values. Valuation Techniques The following summarizes the valuation methodologies used for assets and liabilities recorded at fair value on both a recurring and non-recurring basis and for estimating fair value for financial instruments not recorded at fair value but for which fair value disclosures are required. Cash: Carrying amount approximates fair value due to the liquid nature of cash. Interest bearing deposits with banks and securities purchased under agreements to resell: The fair value of interest bearing deposits with banks and securities purchased under agreements to resell approximates carrying amount due to the short-term maturity of the agreements. Receivables held for sale: The estimated fair value of our receivables held for sale is determined by developing an approximate range of value from a mix of various sources appropriate for the respective pools of assets aggregated by similar risk characteristics or pools of receivables being marketed. These sources include recently observed over-the-counter transactions where available and fair value estimates obtained from an HSBC affiliate and a third party valuation specialist for distinct pools of receivables. These fair value estimates are based on discounted cash flow models using assumptions we believe are consistent with those that would be used by market participants in valuing such receivables and trading inputs from other market participants which includes observed primary and secondary trades. In certain cases, the estimated fair value for a pool of receivables being marketed may be based on bids received from third parties interested in purchasing the pool of receivables. Valuation inputs include estimates of future interest rates, prepayment speeds, default and loss curves, estimated collateral values (including expenses to be incurred to maintain the collateral) and market discount rates reflecting management's estimate of the rate of return that would be required by investors in the current market given the specific characteristics and inherent credit risk. Some of these inputs are influenced by collateral value changes and unemployment rates. We perform analytical reviews of fair value changes on a quarterly basis and periodically validate our valuation methodologies and assumptions based on the results of actual sales of such receivables. We also may hold discussions on value directly with potential investors. Since some receivables pools may have features which are unique, the fair value measurement processes use significant unobservable inputs which are specific to the performance characteristics of the various receivable portfolios. Real estate owned: Fair value is determined based on third party valuations obtained at the time we take title to the property and, if less than the carrying amount of the receivable, the carrying amount of the receivable is adjusted to the fair value less estimated cost to sell. The carrying amount of the property is further reduced, if necessary, at least every 45 days to reflect observable local market data, including local area sales data. Due from affiliates: Carrying amount approximates fair value because the interest rates on these receivables adjust with changing market interest rates. Long-term debt and Due to affiliates: Fair value is primarily determined by a third party valuation source. The pricing services source fair value from quoted market prices and, if not available, expected cash flows are discounted using the appropriate interest rate for the applicable duration of the instrument adjusted for our own credit risk (spread). The credit spreads applied to these instruments are derived from the spreads recognized in the secondary market for similar debt as of the measurement date. Where available, relevant trade data is also considered as part of our validation process. Derivative financial assets and liabilities: Derivative values are defined as the amount we would receive or pay to extinguish the contract using a market participant at the reporting date. The values are determined by management using a pricing system maintained by HSBC Bank USA. In determining these values, HSBC Bank USA uses quoted market prices, when available. For non-exchange traded contracts, such as interest rate swaps, fair value is determined using discounted cash flow modeling techniques. Valuation models calculate the present value of expected future cash flows based on models that utilize independently-sourced market parameters, including interest rate yield curves, option volatilities, and currency rates. Valuations may be adjusted in order to ensure that those values represent appropriate estimates of fair value. These adjustments are generally required to reflect factors such as market liquidity and counterparty credit risk that can affect prices in arms-length transactions with unrelated third parties. Finally, other transaction specific factors such as the variety of valuation models available, the range of unobservable model inputs and other model assumptions can affect estimates of fair value. Imprecision in estimating these factors can impact the amount of revenue or loss recorded for a particular position. Counterparty credit risk is considered in determining the fair value of a financial asset. The Fair Value Framework specifies that the fair value of a liability should reflect the entity's non-performance risk and accordingly, the effect of our own credit risk (spread) has been factored into the determination of the fair value of our financial liabilities, including derivative instruments. In estimating the credit risk adjustment to the derivative assets and liabilities, we take into account the impact of netting and/or collateral arrangements that are designed to mitigate counterparty credit risk.

Litigation and Regulatory Matte

Litigation and Regulatory Matters	3 Months Ended
	Mar. 31, 2017
Loss Contingency [Abstract]
Litigation and Regulatory Matters	Litigation and Regulatory Matters The following supplements, and should be read together with, the disclosure in Note 20, "Litigation and Regulatory Matters," in our 2016 Form 10-K. Only matters with significant updates and new matters since our disclosure in our 2016 Form 10-K are reported herein. In addition to the matters described below and in our 2016 Form 10-K, in the ordinary course of business, we are routinely named as defendants in, or as parties to, various legal actions and proceedings relating to activities of our current and/or former operations. These legal actions and proceedings may include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive relief. In the ordinary course of business, we also are subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. In connection with formal and informal inquiries by these regulators, we receive numerous requests, subpoenas and orders seeking documents, testimony and other information in connection with various aspects of our regulated activities. In view of the inherent unpredictability of legal matters, including litigation, governmental and regulatory matters, particularly where the damages sought are substantial or indeterminate or when the proceedings or investigations are in the early stages, we cannot determine with any degree of certainty the timing or ultimate resolution of such matters or the eventual loss, fines, penalties or business impact, if any, that may result. We establish reserves for litigation, governmental and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. Once established, reserves are adjusted from time to time, as appropriate, in light of additional information. The actual costs of resolving litigation and regulatory matters, however, may be substantially higher than the amounts reserved for those matters. For the legal matters disclosed below, including litigation, governmental and regulatory matters, as well as for the legal matters discussed in Note 20, "Litigation and Regulatory Matters," in our 2016 Form 10-K as to which a loss in excess of accrued liability is reasonably possible in future periods and for which there is sufficient currently available information on the basis of which we believe we can make a reliable estimate, we believe a reasonable estimate could be as much as $390 million for HSBC Finance Corporation. The legal matters underlying this estimate of possible loss will change from time to time and actual results may differ significantly from this current estimate. Given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could have a material adverse effect on our consolidated financial statements in any particular quarterly or annual period. Litigation - Continuing Operations Mortgage Securitization Activity As discussed in previous filings, in December 2016, we had an initial discussion with the U.S. Department of Justice ("DOJ"), wherein the DOJ stated its preliminary view that we are subject to liability under the Financial Industry Reform, Recovery and Enforcement Act in connection with certain RMBS securitizations from 2005 to 2007. In March 2017, we provided our response to the DOJ, which, amongst other things, outlined why we disagree with the DOJ's preliminary view. Discussions are ongoing. Telephone Consumer Protection Act Litigation In March 2017, the putative class action Monteleone v. HSBC Finance Corporation, et al. was dismissed and consolidated with another putative class action pending in the U.S. District Court for the Central District of California and an amended complaint has been filed. Ahmed and Monteleone v. HSBC Bank USA, National Association and PHH Mortgage Corporation (Case 5:16-cv-02057). The new putative class action does not name HSBC Finance Corporation as a defendant. Litigation - Discontinued Operations Credit Card Litigation The U.S. Supreme Court denied the petition for writ of certiorari in March 2017. Salveson v. JPMorgan Chase et al. Plaintiff filed a petition for writ of certiorari with the U.S. Supreme Court in March 2017. Governmental and Regulatory Matters Foreclosure Practices In March 2017, the monitor of the national mortgage settlement filed with the United States District Court for the District of Columbia his final Consumer Relief Report validating that our and our affiliates' obligation under the settlement to provide $370 million in consumer relief has been satisfied.

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements The following new accounting pronouncements were adopted effective January 1, 2017: • Financial Instruments - Classification and Measurement of Financial Liabilities Measured Under the Fair Value Option In January 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standard Update ("ASU") which, for financial liabilities measured under the fair value option, requires recognizing the change in fair value attributable to our own credit in other comprehensive income (loss). We elected to early adopt this guidance, which required a cumulative effect adjustment to the consolidated balance sheet, resulting in a reclassification from retained earnings to accumulated other comprehensive income (loss) of an after tax loss of $19 million as of January 1, 2017. The adoption of this guidance did not require financial statements for periods prior to 2017 to be restated. • Compensation - Stock Compensation In March 2016, the FASB issued an ASU that requires all excess tax benefits and tax deficiencies for share-based payment awards to be recorded within income tax expense (benefit) in the consolidated statement of income (loss) rather than directly to additional paid-in-capital and for excess tax benefits to be classified as an operating activity in the consolidated statement of cash flows. The adoption of the guidance related to excess tax benefits for share-based payment awards resulted in a cumulative effect adjustment of $4 million which decreased the accumulated deficit as of January 1, 2017. The following are accounting pronouncements which will be adopted in future periods: • Financial Instruments - Classification and Measurement (Excluding Financial Liabilities Measured Under the Fair Value Option) In January 2016, the FASB issued an ASU which changes aspects of its guidance on classification and measurement of financial instruments. The ASU requires equity investments (except those accounted for under the equity method or those that result in consolidation) to be measured at fair value with changes in fair value recognized in net income. Under a practicability exception, entities may measure equity investments that do not have readily determinable fair values at cost adjusted for changes in observable prices minus impairment. Under this exception, a qualitative assessment for impairment will be required and, if impairment exists, the carrying amount of the investments must be adjusted to their fair value and an impairment loss recognized in net income. Additionally, the ASU requires new disclosure related to equity investments and modifies certain disclosure requirements related to the fair value of financial instruments. The ASU is effective for all annual and interim periods beginning January 1, 2018 and the guidance should be applied by recording a cumulative effect adjustment to the balance sheet or, as it relates to equity investments without readily determinable fair values, prospectively. We currently do not expect the adoption of this guidance will have a material impact on our financial position or results of operations. • Leases In February 2016, the FASB issued an ASU which requires a lessee to recognize a lease liability and a right-of-use asset on its balance sheet for all leases, including operating leases, with a term greater than 12 months. Lease classification will determine whether a lease is reported as a financing transaction in the income statement and statement of cash flows. The ASU does not substantially change lessor accounting, but it does make certain changes related to leases for which collectability of the lease payments is uncertain or there are significant variable payments. Additionally, the ASU makes several other targeted amendments including a) revising the definition of lease payments to include fixed payments by the lessee to cover lessor costs related to ownership of the underlying asset such as for property taxes or insurance; b) narrowing the definition of initial direct costs which an entity is permitted to capitalize to include only those incremental costs of a lease that would not have been incurred if the lease had not been obtained; c) requiring seller-lessees in a sale-leaseback transaction to recognize the entire gain from the sale of the underlying asset at the time of sale rather than over the leaseback term; and d) expanding disclosures to provide quantitative and qualitative information about lease transactions. The ASU is effective for all annual and interim periods beginning January 1, 2019 and is required to be applied retrospectively to the earliest period presented at the date of initial application, with early adoption permitted. While we are evaluating the impact the new guidance will have on our financial position and results of operations, we currently expect a gross-up of our balance sheet as a result of recognizing lease liabilities and right-of-use assets. The extent of such gross-up remains to be determined once we complete a review of our existing lease contracts and service contracts which may contain embedded leases. As we have not yet completed our review, it is not practicable to quantify the impact of adopting the ASU at this time. • Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an ASU that clarifies how certain cash receipts and cash payments should be classified in the statement of cash flows. Under the ASU, cash proceeds from the settlement of bank-owned life insurance policies should be classified as cash inflows from investing activities. The ASU is effective for all annual and interim periods beginning January 1, 2018 and is required to be applied retrospectively to all periods presented, with early adoption permitted. The new guidance will result in a change in the classification in the statement of cash flows which we do not expect to be significant and will not have any impact on our financial position and results of operations. • Compensation - Retirement Benefits In March 2017, the FASB issued an ASU that requires the service cost component of net periodic pension and postretirement benefit costs to be reported in the same line item as other employee compensation costs while the other components of net periodic pension and postretirement benefit costs are required to be reported in the statement of income separately from the service cost component. The ASU is effective for all annual and interim periods beginning January 1, 2018 and is required to be applied retrospectively with early adoption permitted. We currently do not expect the adoption of this guidance will have a material impact on our financial position or results of operations. There have been no additional accounting pronouncements issued that are expected to have or could have a material impact on our financial position or results of operations.

Receivables Held for Sale (Tabl

Receivables Held for Sale (Tables)	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Summary of Real Estate Secured Receivables Held for Sale	Receivables held for sale, which are carried at the lower of amortized cost or fair value, are comprised of the following: March 31, 2017 December 31, 2016 (in millions) Real estate secured receivables held for sale: First lien $ 1,860 $ 4,699 Second lien 51 975 Total real estate secured receivables held for sale (1)(2) $ 1,911 $ 5,674 (1) At March 31, 2017 and December 31, 2016, receivables held for sale includes $716 million and $750 million , respectively, of closed-end real estate secured receivables which are part of a collateralized funding transaction. These receivables will be sold when they are contractually released as collateral under the public trust and become available for sale. See Note 10, "Variable Interest Entities," for further discussion of our collateralized funding transactions. (2) At March 31, 2017 and December 31, 2016 , contractually delinquent real estate secured receivables held for sale includes $203 million and $235 million , respectively, that are in the process of foreclosure.
Schedule of Receivables Sold to Third-party Investors	The following table summarizes receivables sold to third party investors during the three months ended March 31, 2017 . There were no receivable sales during the three months ended March 31, 2016 . Three Months Ended March 31, 2017 (in millions) Unpaid principal balance at the time of sale $ 4,363 Aggregate cash consideration received $ 4,307 Aggregate carrying value at the time of sale 3,665 Transaction costs 25 Gain on sale of real estate secured receivables $ 617
Summary of Activity in Receivables Held for Sale	The following table summarizes the activity in receivables held for sale during the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 (in millions) Real estate secured receivables held for sale at beginning of period $ 5,674 $ 8,265 Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value (1)(2) — 230 Real estate secured receivable sales (3,665 ) — Lower of amortized cost or fair value adjustment on real estate secured receivables held for sale subsequent to initial transfer to held for sale 113 (51 ) Carrying value of real estate secured receivables held for sale transferred to real estate owned ("REO") (11 ) (14 ) Carrying value of real estate secured receivables held for sale settled through short sale (8 ) (8 ) Change in real estate secured receivable balance, including collections (192 ) (237 ) Real estate secured receivables held for sale at end of period (3) $ 1,911 $ 8,185 (1) During the three months ended March 31, 2016 , the initial lower of amortized cost or fair value adjustment recorded on receivables transferred into held for sale totaled $17 million . (2) Amount includes any accrued interest associated with the receivable. (3) Real estate secured receivables held for sale in the table above are presented net of the valuation allowance.
Allowance for Credit Losses on Financing Receivables	The following table provides a rollforward of our valuation allowance for the three months ended March 31, 2017 and 2016. See Note 11, "Fair Value Measurements," for a discussion of the factors impacting the fair value of these receivables. Three Months Ended March 31, 2017 2016 (in millions) Balance at beginning of period $ 174 $ 13 Initial valuation allowance for real estate secured receivables transferred to held for sale during the period — 4 Increase (decrease) in valuation allowance resulting from changes in fair value (108 ) 68 Change in valuation allowance for collections, charged-off, transferred to REO or short sale (5 ) 1 Balance at end of period $ 61 $ 86
Summary of Components of Cumulative Lower of Amortized Cost or Fair Value Adjustment	The following table summarizes the components of the lower of amortized cost or fair value adjustment during the three months ended March 31, 2017 and 2016: Lower of Amortized Cost or Fair Value Adjustments Associated With (Income)/Expense Fair Value Settlement (1) Total (in millions) Three Months Ended March 31, 2017: Lower of amortized cost or fair value adjustment recorded through other revenues (2) $ (108 ) $ (5 ) $ (113 ) Total lower of amortized cost or fair value adjustment $ (108 ) $ (5 ) $ (113 ) Three Months Ended March 31, 2016: Lower of amortized cost or fair value adjustments recorded as a component of: Provision for credit losses (3) $ 13 $ — $ 13 Other revenues: Initial lower of amortized cost or fair value adjustment (4) 4 — 4 Subsequent to initial transfer to held for sale 68 (17 ) 51 Lower of amortized cost or fair value adjustment recorded through other revenues 72 (17 ) 55 Total lower of amortized cost or fair value adjustment $ 85 $ (17 ) $ 68 (1) Reflects receivable settlements due to either receivable payoffs (including short sales) or transfers of receivables to REO and reflects either a reversal of the non-credit fair value adjustment previously recorded on these receivables or an additional lower of amortized cost or fair value adjustment required at the time of settlement. (2) As all of our receivables are classified as held for sale at March 31, 2017 and December 31, 2016, for the three months ended March 31, 2017 and for all future periods, any lower of amortized cost or fair value adjustments will relate to either changes in fair value subsequent to classification as held for sale or settlements of receivables as discussed above. (3) Represents the portion of the initial lower of amortized cost or fair value adjustment attributable to credit factors which are recorded as provision for credit losses in the consolidated statement of income (loss). (4) Represents the portion of the initial lower of amortized cost or fair value adjustment attributable to non-credit factors which are recorded as a component of total other revenues in the consolidated statement income (loss) as it reflects the impact on value caused by current marketplace conditions including changes in interest rates.

Troubled Debt Restructures an23

Troubled Debt Restructures and Nonperforming Receivables (Tables)	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
TDR Loans	The following table presents information about our TDR Loans at March 31, 2017 and December 31, 2016. As all of our TDR Loans are classified as held for sale as of March 31, 2017 and December 31, 2016 and carried at the lower of amortized cost or fair value, there are no credit loss reserves associated with TDR Loans. March 31, 2017 December 31, 2016 (in millions) Carrying value $ 1,102 $ 1,691 Unpaid principal balance (1) 1,382 2,323 (1) At March 31, 2017 and December 31, 2016 , the unpaid principal balance reflected above includes $189 million and $271 million , respectively, which have received a reduction in the unpaid principal balance as part of an account management action.
Additional Information Relating To Trouble Debt Restructuring Loans	The following table provides additional information about the average balance and interest income recognized on TDR Loans. Three Months Ended March 31, 2017 2016 (in millions) Average balance of TDR Loans $ 1,453 $ 7,525 Interest income recognized on TDR Loans 20 157
Nonperforming Consumer Receivable Portfolio	The following table summarizes the status of receivables held for sale. Accruing Receivables Nonaccrual Receivables (1) Total (in millions) At March 31, 2017 $ 1,588 $ 323 $ 1,911 At December 31, 2016 5,293 381 5,674 (1) Nonaccrual receivables are all receivables which are 90 or more days contractually delinquent as well as second lien receivables (regardless of delinquency status) where the first lien receivable that we own or service is 90 or more days contractually delinquent. Nonaccrual receivables do not include receivables which have made qualifying payments and have been re-aged such that the contractual delinquency status has been reset to current. If a re-aged receivable subsequently experiences payment default and becomes 90 or more days contractually delinquent, it will be reported as nonaccrual. Nonaccrual receivables do not include receivables totaling $197 million and $252 million at March 31, 2017 and December 31, 2016 , respectively, which are less than 90 days contractually delinquent and not accruing interest.
Additional Information on Nonaccrual Receivables	The following table provides additional information on nonaccrual receivables: Three Months Ended March 31, 2017 2016 (in millions) Interest income that would have been recorded if the nonaccrual receivable had been current in accordance with contractual terms during the period $ 8 $ 18 Interest income that was recorded on nonaccrual receivables during the period (1) — 2 (1) During the three months ended March 31, 2017 , interest income recorded on nonaccrual receivables was less than $1 million .

Credit Loss Reserves (Tables)

Credit Loss Reserves (Tables)	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Summarizes Changes in Credit Loss Reserves by Product/Class and Related Receivable Balance by Product	The table below summarizes the changes in credit loss reserves for real estate secured receivables held for investment and the related receivable balance during the three months ended March 31, 2016 . Real Estate Secured First Lien Second Lien Total (in millions) Three Months Ended March 31, 2016: Credit loss reserve rollforward: Credit loss reserve balance at beginning of period $ 137 $ 174 $ 311 Provision for credit losses (1) 23 14 37 Net charge-offs: Charge-offs (1)(2) (53 ) (26 ) (79 ) Recoveries 2 1 3 Total net charge-offs (51 ) (25 ) (76 ) Credit loss reserve balance at end of period $ 109 $ 163 $ 272 Reserve components: Collectively evaluated for impairment $ 36 $ 30 $ 66 Individually evaluated for impairment (3) 63 133 196 Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell 10 — 10 Total credit loss reserves $ 109 $ 163 $ 272 Receivables held for investment: Collectively evaluated for impairment $ 6,028 $ 1,119 $ 7,147 Individually evaluated for impairment (3) 532 620 1,152 Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell 247 27 274 Total receivables held for investment $ 6,807 $ 1,766 $ 8,573 (1) The provision for credit losses and charge-offs for real estate secured receivables during the three months ended March 31, 2016 included $13 million related to the initial lower of amortized cost or fair value adjustment attributable to credit factors for receivables transferred to held for sale. See Note 2, "Receivables Held for Sale," for additional information. (2) For collateral dependent receivables that were transferred to held for sale, existing credit loss reserves at the time of transfer were recognized as a charge-off. We transferred to held for sale certain real estate secured receivables during the three months ended March 31, 2016 and, accordingly, we recognized the existing credit loss reserves on these receivables as additional charge-off totaling $20 million . (3) These amounts represent TDR Loans for which we evaluated reserves using a discounted cash flow methodology. Each loan was individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow impairment analysis was then applied to these groups of TDR Loans. The receivable balance above excluded TDR Loans held for investment that were carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $211 million at March 31, 2016 . The reserve component above excluded credit loss reserves totaling $9 million at March 31, 2016 for TDR Loans held for investment that were carried at the lower of amortized cost or fair value of the collateral less cost to sell.

Fair Value Option (Tables)

Fair Value Option (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value, Liabilities Measured on Recurring Basis	The following table summarizes fixed rate debt issuances accounted for under fair value option reporting ("FVO"): March 31, 2017 December 31, 2016 (in millions) Fixed rate debt accounted for under FVO reported in: Long-term debt $ 1,326 $ 1,317 Due to affiliates 488 485 Total fixed rate debt accounted for under FVO $ 1,814 $ 1,802 Unpaid principal balance of fixed rate debt accounted for under FVO (1) $ 1,733 $ 1,712 (1) Balance includes a foreign currency translation adjustment relating to our foreign denominated FVO debt which decreased the debt balance by $289 million at March 31, 2017 and decreased the debt balance by $310 million at December 31, 2016 .
Components of Gain (Loss) on Debt Designated at Fair Value and Related Derivatives	The following table summarizes the components of the gain on debt designated at fair value and related derivatives reflected in the consolidated statement of income (loss) for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 (in millions) Mark-to-market on debt designated at fair value (1) : Interest rate component $ 18 $ 6 Credit risk component (2) — 11 Total mark-to-market on debt designated at fair value 18 17 Mark-to-market on the related derivatives (1)(3) (15 ) (9 ) Net realized gains on the related derivatives (1) 9 16 Gain on debt designated at fair value and related derivatives $ 12 $ 24 (1) The derivatives associated with debt designated at fair value are economic hedges but do not qualify for hedge accounting. See Note 6, "Derivative Financial Instruments," for additional discussion of these non-qualifying hedges. (2) As discussed below and more fully in Note 13, "New Accounting Pronouncements," beginning January 1, 2017, the fair value movement on fair value option debt attributable to our credit spreads is recorded in common equity as a component of other comprehensive income. For the three months ended March 31, 2017 , the fair value movement on fair value option debt attributable to our credit spreads was a loss $8 million . (3) Mark-to-market on debt designated at fair value and related derivatives excludes market value changes due to fluctuations in foreign currency exchange rates. Foreign currency translation gains (losses) recorded in derivative related income (expense) associated with debt designated at fair value was a loss of $21 million and a loss of $66 million for the three months ended March 31, 2017 and 2016, respectively. Offsetting gains (losses) recorded in derivative related income (expense) associated with the related derivatives was a gain of $21 million and a gain of $66 million for the three months ended March 31, 2017 and 2016, respectively.

Derivative Financial Instrume26

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting and collateral, and therefore are not representative of our exposure. The table below also presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet. March 31, 2017 December 31, 2016 Derivative Financial Assets Derivative Financial Liabilities Derivative Financial Assets Derivative Financial Liabilities (in millions) Derivatives (1) Derivatives accounted for as cash flow hedges associated with debt: Currency swaps $ — $ (54 ) $ — $ (58 ) Cash flow hedges — (54 ) — (58 ) Non-qualifying hedge activities: Derivatives associated with debt carried at fair value: Cross currency interest rate swaps 21 (287 ) 15 (286 ) Derivatives associated with debt carried at fair value 21 (287 ) 15 (286 ) Total derivatives 21 (341 ) 15 (344 ) Less: Gross amounts offset in the balance sheet (2) (21 ) 295 (15 ) 332 Net amounts of derivative financial assets and liabilities presented in the balance sheet (3) $ — $ (46 ) $ — $ (12 ) (1) All of our derivatives are bilateral over-the-counter derivatives. (2) Represents the netting of derivative receivable and payable balances for the same counterparty under an enforceable netting agreement. Gross amounts offset in the balance sheet includes cash collateral paid of $274 million at March 31, 2017 and $317 million at December 31, 2016 . At March 31, 2017 and December 31, 2016 , we did not have any financial instrument collateral received/posted. (3) At March 31, 2017 and December 31, 2016 , we had not received any cash not subject to an enforceable master netting agreement.
Gain or Loss Recorded on Our Cash Flow Hedging Relationships	The following table provides the gain or loss recorded on our cash flow hedging relationships. Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Reclassed From AOCI into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on the Derivative(Ineffective Portion) Gain (Loss) Recognized In Income on Derivative (Ineffective Portion) 2017 2016 2017 2016 2017 2016 (in millions) (in millions) (in millions) Three Months Ended March 31, Interest rate swaps $ — $ 11 Interest expense $ — $ — Derivative related income (expense) $ — $ — Currency swaps — — Interest expense — (3 ) Derivative related income (expense) 2 4 Total $ — $ 11 $ — $ (3 ) $ 2 $ 4
Gain or Loss Recorded on Derivatives Related to Fair Value Option Debt Primarily Due to Changes in Interest Rates	The following table provides the gain or loss recorded on the derivatives related to fair value option debt. See Note 5, "Fair Value Option," for further discussion. Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Derivative Related Income (Expense) Three Months Ended March 31, 2017 2016 (in millions) Cross currency interest rate contracts Gain (loss) on debt designated at fair value and related derivatives $ (6 ) $ 7 Total $ (6 ) $ 7
Notional Values of Derivative Contracts	The following table provides the notional amounts of derivative contracts. March 31, 2017 December 31, 2016 (in millions) Derivatives designated as hedging instruments: Currency swaps $ 203 $ 203 Non-qualifying hedges: Derivatives associated with debt carried at fair value: Cross currency interest rate swaps 1,562 1,562 Total $ 1,765 $ 1,765

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Summary of Changes in Accumulated Other Comprehensive Loss	The following table presents changes in accumulated other comprehensive income (loss) balances. Three Months Ended March 31, 2017 2016 (in millions) Unrealized gains (losses) on fair value option debt attributable to credit: Balance at beginning of period, as previously reported $ — $ — Cumulative effect adjustment to initially apply new accounting guidance for fair value option debt attributable to credit, net of tax of $(11) million and $- million, respectively (1) (19 ) — Balance at beginning of period, adjusted (19 ) — Other comprehensive loss for period: Net loss arising during period, net of tax of $(3) million and $- million, respectively (5 ) — Total other comprehensive loss for period (5 ) — Balance at end of period (24 ) — Unrealized gains (losses) on cash flow hedging instruments: Balance at beginning of period — (15 ) Other comprehensive income for period: Net gains arising during period, net of tax of $- million and $4 million, respectively — 7 Reclassification adjustment for losses realized in net income, net of tax of $- million and $2 million, respectively (2) — 1 Total other comprehensive income for period — 8 Balance at end of period — (7 ) Pension and postretirement benefit plan liability: Balance at beginning of period 24 29 Other comprehensive loss for period: Reclassification adjustment for (gains) losses realized in net income, net of tax of $(1) million and $(1) million, respectively (3) (1 ) (1 ) Total other comprehensive loss for period (1 ) (1 ) Balance at end of period 23 28 Total accumulated other comprehensive income (loss) at end of period $ (1 ) $ 21 (1) For information on the adoption of new accounting guidance related to fair value option debt attributable to our credit spreads, see Note 13, "New Accounting Pronouncements." (2) The amounts reclassified relate to currency swaps and are included as a component of interest expense in our consolidated statement of income (loss). (3) The amounts reclassified are included as a component of salaries and employee benefits in our consolidated statement of income (loss).

Pension and Other Postretirem28

Pension and Other Postretirement Benefits (Tables)	3 Months Ended
	Mar. 31, 2017
Pension Plan, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Components of Pension Expense for Defined Benefit Pension Plan	The table below reflects the portion of pension expense and its related components of the HSBC North America Pension Plan which has been allocated to us and is recorded in our consolidated statement of income (loss). We have not been allocated any portion of the Plan's net pension liability. Three Months Ended March 31, 2017 2016 (in millions) Interest cost on projected benefit obligation $ 12 $ 12 Expected return on plan assets (14 ) (14 ) Amortization of net actuarial loss 6 7 Administrative costs 1 1 Pension expense $ 5 $ 6
Other Postretirement Benefit Plan, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Components of Pension Expense for Defined Benefit Pension Plan	The components of our net postretirement benefit cost are as follows: Three Months Ended March 31, 2017 2016 (in millions) Interest cost $ 1 $ 1 Amortization of reduction in liability resulting from plan amendment (2 ) (2 ) Net periodic postretirement benefit cost $ (1 ) $ (1 )

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Schedule 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 for continuing operations: March 31, 2017 December 31, 2016 (in millions) Assets: Cash $ 203 $ 128 Interest bearing deposits with banks — 1,500 Securities purchased under agreements to resell (1) 5,582 2,392 Other assets 272 114 Total assets $ 6,057 $ 4,134 Liabilities: Due to affiliates (2) $ 802 $ 3,300 Other liabilities 5 41 Total liabilities $ 807 $ 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 March 31, 2017 2016 (in millions) Income/(Expense): Interest income from HSBC affiliates $ 9 $ 1 Interest expense paid to HSBC affiliates (1) (29 ) (75 ) Net interest income (expense) $ (20 ) $ (74 ) Gain on FVO debt with affiliate $ 3 $ — Servicing and other fees from (to) HSBC affiliates (27 ) 4 Support services from HSBC affiliates (23 ) (42 ) 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." Due to affiliates consists of the following: March 31, 2017 December 31, 2016 (in millions) HSBC USA Inc. $ — $ 2,500 HSBC Holdings plc (includes $488 million and $485 million at March 31, 2017 and December 31, 2016 carried at fair value, respectively) 802 800 Due to affiliates $ 802 $ 3,300

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure Variable Interest Entities Summary Of Assets And Liabilities Of Consolidated Secured Financing V I Es [Abstract]
Summary of Assets and Liabilities of Consolidated Secured Financing VIEs	The assets and liabilities of the consolidated secured financing VIEs consisted of the following at March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Consolidated Assets Consolidated Liabilities Consolidated Assets Consolidated Liabilities (in millions) Real estate collateralized funding vehicles: Receivables held for sale $ 716 $ — $ 750 $ — Other liabilities — (33 ) — (11 ) Long-term debt — 371 — 404 Total $ 716 $ 338 $ 750 $ 393

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Carrying and Estimated Fair Value	The following table summarizes the carrying value and estimated fair value of our financial instruments at March 31, 2017 and December 31, 2016 . March 31, 2017 Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (in millions) Financial assets: Cash $ 203 $ 203 $ 203 $ — $ — Securities purchased under agreements to resell 5,582 5,582 — 5,582 — Real estate secured receivables held for sale 1,911 1,921 — — 1,921 Due from affiliates 272 272 — 272 — Financial liabilities: Due to affiliates carried at fair value 488 488 — 488 — Due to affiliates not carried at fair value 314 338 — 338 — Long-term debt carried at fair value 1,326 1,326 — 1,326 — Long-term debt not carried at fair value 2,994 3,344 — 3,344 — Derivative financial liabilities 46 46 — 46 — December 31, 2016 Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (in millions) Financial assets: Cash $ 128 $ 128 $ 128 $ — $ — Interest bearing deposits with banks 1,500 1,500 1,500 — — Securities purchased under agreements to resell 2,392 2,392 — 2,392 — Real estate secured receivables held for sale 5,674 6,129 — — 6,129 Due from affiliates 114 114 — 114 — Financial liabilities: Due to affiliates carried at fair value 485 485 — 485 — Due to affiliates not carried at fair value 2,815 2,875 — 2,875 — Long-term debt carried at fair value 1,317 1,317 — 1,317 — Long-term debt not carried at fair value 3,023 3,359 — 3,359 — Derivative financial liabilities 12 12 — 12 —
Assets and Liabilities Recorded at Fair Value on a Recurring Basis	The following table presents information about our assets and liabilities measured at fair value on a recurring basis at March 31, 2017 and December 31, 2016 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting (1) Total of Assets (Liabilities) Measured at Fair Value (in millions) March 31, 2017: Derivative financial assets: Currency swaps $ — $ 21 $ — $ — $ 21 Derivative netting — — — (21 ) (21 ) Total derivative financial assets — 21 — (21 ) — Total assets $ — $ 21 $ — $ (21 ) $ — Due to affiliates carried at fair value $ — $ (488 ) $ — $ — $ (488 ) Long-term debt carried at fair value — (1,326 ) — — (1,326 ) Derivative related liabilities: Currency swaps — (341 ) — — (341 ) Derivative netting — — — 295 295 Total derivative related liabilities — (341 ) — 295 (46 ) Total liabilities $ — $ (2,155 ) $ — $ 295 $ (1,860 ) December 31, 2016: Derivative financial assets: Currency swaps $ — $ 15 $ — $ — $ 15 Derivative netting — — — (15 ) (15 ) Total derivative financial assets — 15 — (15 ) — Total assets $ — $ 15 $ — $ (15 ) $ — Due to affiliates carried at fair value $ — $ (485 ) $ — $ — $ (485 ) Long-term debt carried at fair value — (1,317 ) — — (1,317 ) Derivative related liabilities: Currency swaps — (344 ) — — (344 ) Derivative netting — — — 332 332 Total derivative related liabilities — (344 ) — 332 (12 ) Total liabilities $ — $ (2,146 ) $ — $ 332 $ (1,814 ) (1) Represents counterparty and swap collateral netting which allow the offsetting of amounts relating to certain contracts when certain conditions are met.
Assets and Liabilities Recorded at Fair Value on a Non-recurring Basis	The following table presents information about our assets and liabilities measured at fair value on a non-recurring basis at March 31, 2017 and 2016, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. Certain of the fair values in the table below were not obtained as of March 31, 2017 or 2016 but during the periods then ended. See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2016 Form 10-K as well as the summary of our valuation techniques below for discussion of our policy in measuring fair value. Non-Recurring Fair Value Measurements March 31, 2017 Total Gains Level 1 Level 2 Level 3 Total (in millions) Receivables held for sale $ — $ — $ 1,911 $ 1,911 $ 113 Real estate owned (1) — 26 — 26 (2 ) Total assets at fair value on a non-recurring basis $ — $ 26 $ 1,911 $ 1,937 $ 111 Non-Recurring Fair Value Measurements Total Gains Level 1 Level 2 Level 3 Total (in millions) Receivables held for sale $ — $ 1,299 $ 6,886 $ 8,185 $ (68 ) Receivables held for investment carried at the lower of amortized cost or fair value of the collateral less cost to sell (2) — 274 — 274 (26 ) Real estate owned (1) — 80 — 80 (5 ) Total assets at fair value on a non-recurring basis $ — $ 1,653 $ 6,886 $ 8,539 $ (99 ) (1) Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value of the underlying asset unadjusted for transaction costs. (2) Total gains (losses) for the three months ended March 31, 2016 include amounts recorded on receivables that were subsequently transferred to held for sale.
Fair Value Inputs, Assets, Quantitative Information	The following table presents quantitative information about non-recurring fair value measurements of assets and liabilities classified as Level 3 in the fair value hierarchy at March 31, 2017 and December 31, 2016 : Fair Value Range of Inputs Financial Instrument Type March 31, 2017 Dec. 31, 2016 Valuation Technique Significant Unobservable Inputs March 31, 2017 December 31, 2016 (in millions) Receivables held for sale $ 1,911 $ 5,674 Third party appraisal valuation based on Collateral loss severity rates (1) 0 % - 100% 0 % - 100% estimated loss severities, including collateral values, cash flows and Expenses incurred through collateral disposition 5 % - 10% 5 % - 10% market discount rate Market discount rate 4 % - 14% 4 % - 14% (1) At March 31, 2017 and December 31, 2016 , the weighted average collateral loss severity rate was 43 percent and 51 percent , respectively, taking into consideration both expected net cash flows as well as current collateral values.

Organization and Basis of Pre32

Organization and Basis of Presentation (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)segment
Income Taxes [Line Items]
Number of reportable segments | segment	1
Out of Period Adjustment [Member]
Income Taxes [Line Items]
Current tax asset, out of period adjustment	$ 36
Deferred tax asset, out of period adjustment	$ (36)

Receivables Held for Sale - Rea

Receivables Held for Sale - Real Estate Secured Receivables (Details) - USD ($) $ in Millions		Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables held for sale	[1],[2]	$ 1,911	$ 5,674
Loans pledged as collateral		716	750
Mortgage loans in process of foreclosure		203	235
First lien [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables held for sale		1,860	4,699
Second lien [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables held for sale		$ 51	$ 975
[1]	At March 31, 2017 and December 31, 2016, receivables held for sale includes $716 million and $750 million, respectively, of closed-end real estate secured receivables which are part of a collateralized funding transaction. These receivables will be sold when they are contractually released as collateral under the public trust and become available for sale. See Note 10, "Variable Interest Entities," for further discussion of our collateralized funding transactions.
[2]	At March 31, 2017 and December 31, 2016, contractually delinquent real estate secured receivables held for sale includes $203 million and $235 million, respectively, that are in the process of foreclosure.

Receivables Held for Sale - Add

Receivables Held for Sale - Additional Information (Detail) - USD ($)		3 Months Ended
		Mar. 31, 2017		Mar. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Lower of amortized cost or fair value adjustment on loans held for sale		$ (113,000,000)		$ 68,000,000
Aggregate unpaid balance				282,000,000
Aggregate carrying value				267,000,000
Credit loss reserve	[1],[2]			79,000,000
Initial lower of amortized cost or fair value adjustment				17,000,000
Other Revenue [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Lower of amortized cost or fair value adjustment on loans held for sale		(113,000,000)	[3]	55,000,000
Subsequent to initial transfer to held for sale				51,000,000
Initial lower of amortized cost or fair value adjustment	[4]			4,000,000
Provision for Credit Losses [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Initial lower of amortized cost or fair value adjustment	[5]			13,000,000
Fair Value [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Lower of amortized cost or fair value adjustment on loans held for sale		(108,000,000)		85,000,000
Fair Value [Member] | Other Revenue [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Lower of amortized cost or fair value adjustment on loans held for sale		$ (108,000,000)	[3]	72,000,000
Subsequent to initial transfer to held for sale				68,000,000
Initial lower of amortized cost or fair value adjustment	[4]			4,000,000
Fair Value [Member] | Provision for Credit Losses [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Initial lower of amortized cost or fair value adjustment	[5]			13,000,000
Real Estate Secured Receivable Portfolio [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Credit loss reserve				$ 20,000,000
[1]	For collateral dependent receivables that were transferred to held for sale, existing credit loss reserves at the time of transfer were recognized as a charge-off. We transferred to held for sale certain real estate secured receivables during the three months ended March 31, 2016 and, accordingly, we recognized the existing credit loss reserves on these receivables as additional charge-off totaling $20 million.
[2]	The provision for credit losses and charge-offs for real estate secured receivables during the three months ended March 31, 2016 included $13 million related to the initial lower of amortized cost or fair value adjustment attributable to credit factors for receivables transferred to held for sale. See Note 2, "Receivables Held for Sale," for additional information.
[3]	As all of our receivables are classified as held for sale at March 31, 2017 and December 31, 2016, for the three months ended March 31, 2017 and for all future periods, any lower of amortized cost or fair value adjustments will relate to either changes in fair value subsequent to classification as held for sale or settlements of receivables as discussed above.
[4]	Represents the portion of the initial lower of amortized cost or fair value adjustment attributable to non-credit factors which are recorded as a component of total other revenues in the consolidated statement income (loss) as it reflects the impact on value caused by current marketplace conditions including changes in interest rates.
[5]	Represents the portion of the initial lower of amortized cost or fair value adjustment attributable to credit factors which are recorded as provision for credit losses in the consolidated statement of income (loss).

Receivables Held for Sale - Rec

Receivables Held for Sale - Receivables Sold to Third Party Investors (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Aggregate cash consideration received	$ 4,307	$ 0
Gain on sale of real estate secured receivables	617	$ 0
Real Estate Secured Receivables Held for Sale [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance at the time of sale	4,363
Aggregate cash consideration received	4,307
Aggregate carrying value at the time of sale	3,665
Transaction costs	25
Gain on sale of real estate secured receivables	$ 617

Receivables Held for Sale - Sum

Receivables Held for Sale - Summary of Activity in Receivables Held for Sale (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Receivables Held for Sale, Activity [Roll Forward]
Real estate secured receivables held for sale at beginning of period	[1],[2]	$ 5,674
Real estate secured receivables held for sale at end of period	[1],[2]	1,911
Receivables Held for Sale, Initial Lower of Amortized Cost or Fair Value Adjustment			$ (17)
Mortgage Loans on Real Estate [Member]
Receivables Held for Sale, Activity [Roll Forward]
Real estate secured receivables held for sale at beginning of period		5,674	8,265
Transfer of real estate secured receivables into held for sale at the lower of amortized cost or fair value	[3],[4]	0	230
Real estate secured receivable sales		(3,665)	0
Lower of amortized cost or fair value adjustment on real estate secured receivables held for sale subsequent to initial transfer to held for sale		113	(51)
Carrying value of real estate secured receivables held for sale transferred to real estate owned (REO)		(11)	(14)
Carrying value of real estate secured receivables held for sale settled through short sale		(8)	(8)
Change in real estate secured receivable balance, including collections		(192)	(237)
Real estate secured receivables held for sale at end of period	[5]	$ 1,911	8,185
Other Revenue [Member]
Receivables Held for Sale, Activity [Roll Forward]
Receivables Held for Sale, Initial Lower of Amortized Cost or Fair Value Adjustment	[6]		$ (4)
[1]	At March 31, 2017 and December 31, 2016, receivables held for sale includes $716 million and $750 million, respectively, of closed-end real estate secured receivables which are part of a collateralized funding transaction. These receivables will be sold when they are contractually released as collateral under the public trust and become available for sale. See Note 10, "Variable Interest Entities," for further discussion of our collateralized funding transactions.
[2]	At March 31, 2017 and December 31, 2016, contractually delinquent real estate secured receivables held for sale includes $203 million and $235 million, respectively, that are in the process of foreclosure.
[3]	Amount includes any accrued interest associated with the receivable.
[4]	During the three months ended March 31, 2016, the initial lower of amortized cost or fair value adjustment recorded on receivables transferred into held for sale totaled $17 million.
[5]	Real estate secured receivables held for sale in the table above are presented net of the valuation allowance.
[6]	Represents the portion of the initial lower of amortized cost or fair value adjustment attributable to non-credit factors which are recorded as a component of total other revenues in the consolidated statement income (loss) as it reflects the impact on value caused by current marketplace conditions including changes in interest rates.

Receivables Held For Sale - All

Receivables Held For Sale - Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	$ 174	$ 13
Initial valuation allowance for real estate secured receivables transferred to held for sale during the period	0	4
Increase (decrease) in valuation allowance resulting from changes in fair value	(108)	68
Change in valuation allowance for collections, charged-off, transferred to REO or short sale	(5)	1
Balance at end of period	$ 61	$ 86

Receivables Held for Sale - S38

Receivables Held for Sale - Summary of Components of Cumulative Lower of Amortized Cost or Fair Value Adjustment (Detail) - USD ($)		3 Months Ended
		Mar. 31, 2017		Mar. 31, 2016
Lower of amortized cost or fair value adjustment recorded as a component of:
Initial lower of amortized cost or fair value adjustment				$ 17,000,000
Lower of amortized cost or fair value adjustment on loans held for sale		$ (113,000,000)		68,000,000
Fair Value [Member]
Lower of amortized cost or fair value adjustment recorded as a component of:
Lower of amortized cost or fair value adjustment on loans held for sale		(108,000,000)		85,000,000
Settlement (Including Short Sales) [Member]
Lower of amortized cost or fair value adjustment recorded as a component of:
Lower of amortized cost or fair value adjustment on loans held for sale	[1]	(5,000,000)		(17,000,000)
Other Revenue [Member]
Lower of amortized cost or fair value adjustment recorded as a component of:
Initial lower of amortized cost or fair value adjustment	[2]			4,000,000
Subsequent to initial transfer to held for sale				51,000,000
Lower of amortized cost or fair value adjustment on loans held for sale		(113,000,000)	[3]	55,000,000
Other Revenue [Member] | Fair Value [Member]
Lower of amortized cost or fair value adjustment recorded as a component of:
Initial lower of amortized cost or fair value adjustment	[2]			4,000,000
Subsequent to initial transfer to held for sale				68,000,000
Lower of amortized cost or fair value adjustment on loans held for sale		(108,000,000)	[3]	72,000,000
Other Revenue [Member] | Settlement (Including Short Sales) [Member]
Lower of amortized cost or fair value adjustment recorded as a component of:
Initial lower of amortized cost or fair value adjustment	[1],[2]			0
Subsequent to initial transfer to held for sale	[1]			(17,000,000)
Lower of amortized cost or fair value adjustment on loans held for sale	[1]	$ (5,000,000)	[3]	(17,000,000)
Provision for Credit Losses [Member]
Lower of amortized cost or fair value adjustment recorded as a component of:
Initial lower of amortized cost or fair value adjustment	[4]			13,000,000
Provision for Credit Losses [Member] | Fair Value [Member]
Lower of amortized cost or fair value adjustment recorded as a component of:
Initial lower of amortized cost or fair value adjustment	[4]			13,000,000
Provision for Credit Losses [Member] | Settlement (Including Short Sales) [Member]
Lower of amortized cost or fair value adjustment recorded as a component of:
Initial lower of amortized cost or fair value adjustment	[1],[4]			$ 0
[1]	Reflects receivable settlements due to either receivable payoffs (including short sales) or transfers of receivables to REO and reflects either a reversal of the non-credit fair value adjustment previously recorded on these receivables or an additional lower of amortized cost or fair value adjustment required at the time of settlement.
[2]	Represents the portion of the initial lower of amortized cost or fair value adjustment attributable to non-credit factors which are recorded as a component of total other revenues in the consolidated statement income (loss) as it reflects the impact on value caused by current marketplace conditions including changes in interest rates.
[3]	As all of our receivables are classified as held for sale at March 31, 2017 and December 31, 2016, for the three months ended March 31, 2017 and for all future periods, any lower of amortized cost or fair value adjustments will relate to either changes in fair value subsequent to classification as held for sale or settlements of receivables as discussed above.
[4]	Represents the portion of the initial lower of amortized cost or fair value adjustment attributable to credit factors which are recorded as provision for credit losses in the consolidated statement of income (loss).

Troubled Debt Restructures an39

Troubled Debt Restructures and Nonperforming Receivables - TDR Loans (Details) - USD ($) $ in Millions		Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Modifications [Line Items]
Unpaid principal balance subject to reduction		$ 189	$ 271
Receivables Held For Sale [Member] | Real estate secured [Member]
Financing Receivable, Modifications [Line Items]
Carrying value of TDR Loans		1,102	1,691
Unpaid balance of TDR loans	[1]	$ 1,382	$ 2,323
[1]	At March 31, 2017 and December 31, 2016, the unpaid principal balance reflected above includes $189 million and $271 million, respectively, which have received a reduction in the unpaid principal balance as part of an account management action.

Troubled Debt Restructures an40

Troubled Debt Restructures and Nonperforming Receivables - Additional Information Related to TDR Loans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Receivables [Abstract]
Total average balance of TDR Loans	$ 1,453	$ 7,525
Total interest income recognized on TDR Loans	$ 20	$ 157

Troubled Debt Restructures an41

Troubled Debt Restructures and Nonperforming Receivables - Nonperforming Portfolio (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Receivables		$ 1,911	$ 5,674
Delinquency threshold for loss reserves		90 days
Nonaccrual loans carried at lower of amortized cost of fair value less cost to sell but less than 90 days delinquent		$ 197	252
Accruing Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Receivables		1,588	5,293
Nonaccrual Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Receivables	[1]	$ 323	$ 381
[1]	Nonaccrual receivables are all receivables which are 90 or more days contractually delinquent as well as second lien receivables (regardless of delinquency status) where the first lien receivable that we own or service is 90 or more days contractually delinquent. Nonaccrual receivables do not include receivables which have made qualifying payments and have been re-aged such that the contractual delinquency status has been reset to current. If a re-aged receivable subsequently experiences payment default and becomes 90 or more days contractually delinquent, it will be reported as nonaccrual. Nonaccrual receivables do not include receivables totaling $197 million and $252 million at March 31, 2017 and December 31, 2016, respectively, which are less than 90 days contractually delinquent and not accruing interest.

Troubled Debt Restructures an42

Troubled Debt Restructures and Nonperforming Receivables - Additional Information on Nonaccrual Receivables (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Interest income that would have been recorded if the nonaccrual receivable had been current in accordance with contractual terms during the period		$ 8	$ 18
Interest income that was recorded on nonaccrual receivables during the period (less than $1 million for the period ended March 31, 2017)	[1]	0	$ 2
Maximum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Interest income that was recorded on nonaccrual receivables during the period (less than $1 million for the period ended March 31, 2017)		$ 1
[1]	During the three months ended March 31, 2017, interest income recorded on nonaccrual receivables was less than $1 million.

Credit Loss Reserves - Summariz

Credit Loss Reserves - Summarizes Changes in Credit Loss Reserves by Product/Class and Related Receivable Balance by Product (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016		Dec. 31, 2016	Mar. 31, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Credit loss reserves at beginning of period			$ 311
Provision for credit losses		$ 0	37	[1]
Charge-offs	[1],[2]		(79)
Recoveries			3
Total net charge-offs			(76)
Credit loss reserves at end of period			272
Reserve components:
Collectively evaluated for impairment						$ 66
Individually evaluated for impairment	[3]					196
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell						10
Total credit loss reserves			311			272
Receivables held for investment:
Collectively evaluated for impairment						7,147
Individually evaluated for impairment	[3]					1,152
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell						274
Total receivables held for investment						8,573
Initial lower of amortized cost or fair value adjustment			17
Excludes Credit loss reserves for TDR Loans that are carried at the lower of amortized cost or fair value						9
Real Estate Secured Receivable Portfolio [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Charge-offs			(20)
First lien [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Credit loss reserves at beginning of period			137
Provision for credit losses	[1]		23
Charge-offs	[1],[2]		(53)
Recoveries			2
Total net charge-offs			(51)
Credit loss reserves at end of period			109
Reserve components:
Collectively evaluated for impairment						36
Individually evaluated for impairment	[3]					63
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell						10
Total credit loss reserves			137			109
Receivables held for investment:
Collectively evaluated for impairment						6,028
Individually evaluated for impairment	[3]					532
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell						247
Total receivables held for investment						6,807
Second lien [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Credit loss reserves at beginning of period			174
Provision for credit losses	[1]		14
Charge-offs	[1],[2]		(26)
Recoveries			1
Total net charge-offs			(25)
Credit loss reserves at end of period			163
Reserve components:
Collectively evaluated for impairment						30
Individually evaluated for impairment	[3]					133
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell						0
Total credit loss reserves			174			163
Receivables held for investment:
Collectively evaluated for impairment						1,119
Individually evaluated for impairment	[3]					620
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell						27
Total receivables held for investment						$ 1,766
Provision for Loan and Lease Losses [Member]
Receivables held for investment:
Initial lower of amortized cost or fair value adjustment	[4]		$ 13
TDR [Member]
Receivables held for investment:
Excludes TDR loans that are carried at the lower of amortized cost or fair value					$ 211
[1]	The provision for credit losses and charge-offs for real estate secured receivables during the three months ended March 31, 2016 included $13 million related to the initial lower of amortized cost or fair value adjustment attributable to credit factors for receivables transferred to held for sale. See Note 2, "Receivables Held for Sale," for additional information.
[2]	For collateral dependent receivables that were transferred to held for sale, existing credit loss reserves at the time of transfer were recognized as a charge-off. We transferred to held for sale certain real estate secured receivables during the three months ended March 31, 2016 and, accordingly, we recognized the existing credit loss reserves on these receivables as additional charge-off totaling $20 million.
[3]	These amounts represent TDR Loans for which we evaluated reserves using a discounted cash flow methodology. Each loan was individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow impairment analysis was then applied to these groups of TDR Loans. The receivable balance above excluded TDR Loans held for investment that were carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $211 million at March 31, 2016. The reserve component above excluded credit loss reserves totaling $9 million at March 31, 2016 for TDR Loans held for investment that were carried at the lower of amortized cost or fair value of the collateral less cost to sell.
[4]	Represents the portion of the initial lower of amortized cost or fair value adjustment attributable to credit factors which are recorded as provision for credit losses in the consolidated statement of income (loss).

Fair Value Option - Fair Value

Fair Value Option - Fair Value Option on Liabilities (Details) - USD ($) $ in Millions		Mar. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Long-term debt		$ 1,326	$ 1,317
Due to affiliates		488	485
Total fixed rate debt accounted for under FVO		1,814	1,802
Unpaid principal balance of fixed rate debt accounted for under FVO	[1]	1,733	1,712
Change in debt balance from foreign currency translation adjustment		$ (289)	$ (310)
[1]	Balance includes a foreign currency translation adjustment relating to our foreign denominated FVO debt which decreased the debt balance by $289 million at March 31, 2017 and decreased the debt balance by $310 million at December 31, 2016.

Fair Value Option - Components

Fair Value Option - Components of Gain (Loss) on Debt Designated at Fair Value and Related Derivatives (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Mark-to-market on debt designated at fair value :
Interest rate component	[1]	$ 18	$ 6
Credit risk component(2)	[1],[2]	0	11
Total mark-to-market on debt designated at fair value	[1]	18	17
Mark-to-market on the related derivatives	[1],[3]	(15)	(9)
Net realized gains on the related derivatives	[1]	9	16
Gain on debt designated at fair value and related derivatives		12	24
Fair value option debt attributable to credit spread, before tax		(8)
Foreign currency translation gains (losses) recorded in derivatives		(21)	(66)
Offsetting gains (losses) recorded in derivative related income (expense)		$ 21	$ 66
[1]	The derivatives associated with debt designated at fair value are economic hedges but do not qualify for hedge accounting. See Note 6, "Derivative Financial Instruments," for additional discussion of these non-qualifying hedges.
[2]	As discussed below and more fully in Note 13, "New Accounting Pronouncements," beginning January 1, 2017, the fair value movement on fair value option debt attributable to our credit spreads is recorded in common equity as a component of other comprehensive income. For the three months ended March 31, 2017, the fair value movement on fair value option debt attributable to our credit spreads was a loss $8 million.
[3]	Mark-to-market on debt designated at fair value and related derivatives excludes market value changes due to fluctuations in foreign currency exchange rates. Foreign currency translation gains (losses) recorded in derivative related income (expense) associated with debt designated at fair value was a loss of $21 million and a loss of $66 million for the three months ended March 31, 2017 and 2016, respectively. Offsetting gains (losses) recorded in derivative related income (expense) associated with the related derivatives was a gain of $21 million and a gain of $66 million for the three months ended March 31, 2017 and 2016, respectively.

Fair Value Option - Additional

Fair Value Option - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Cumulative increased value of debt through fair value option adjustments	$ 81	$ 90

Derivative Financial Instrume47

Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Notional values of derivative contracts	$ 1,765	$ 1,765
Fair value of collateral agreements with affiliate counterparties	274	317
Decrease in debt carrying value due to fair value hedge	14	15
Losses on current derivative instruments designated as cash flow hedges are reported in OCI net of tax (less than $1 million at March 31, 2017 and December 31, 2016)	1	1
Unrealized net losses on cash flow hedges (less than $1 million)	1
HSBC Bank USA [Member]
Derivative [Line Items]
Notional values of derivative contracts	$ 1,800	$ 1,800

Derivative Financial Instrume48

Derivative Financial Instruments - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions		Mar. 31, 2017	Dec. 31, 2016
Derivative Asset [Abstract]
Derivatives accounted for as cash flow hedges associated with debt:	[1]	$ 0	$ 0
Total Derivative Financial Assets	[1]	21	15
Less: Gross amounts offset in the balance sheet	[1],[2]	(21)	(15)
Net amounts of derivative financial assets and liabilities presented in the balance sheet	[1],[3]	0	0
Derivative Liability [Abstract]
Derivatives accounted for as cash flow hedges associated with debt:	[1]	(54)	(58)
Total Derivative Financial Liabilities	[1]	(341)	(344)
Less: Gross amounts offset in the balance sheet	[1],[2]	295	332
Net amounts of derivative financial assets and liabilities presented in the balance sheet	[1],[3]	(46)	(12)
Debt [Member]
Derivative Asset [Abstract]
Non-qualifying hedge activities:	[1]	21	15
Derivative Liability [Abstract]
Non-qualifying hedge activities:	[1]	(287)	(286)
Currency swaps [Member]
Derivative Asset [Abstract]
Derivatives accounted for as cash flow hedges associated with debt:	[1]	0	0
Derivative Liability [Abstract]
Derivatives accounted for as cash flow hedges associated with debt:	[1]	(54)	(58)
Cross currency interest rate swaps [Member] | Debt [Member]
Derivative Asset [Abstract]
Non-qualifying hedge activities:	[1]	21	15
Derivative Liability [Abstract]
Non-qualifying hedge activities:	[1]	$ (287)	$ (286)
[1]	All of our derivatives are bilateral over-the-counter derivatives.
[2]	Represents the netting of derivative receivable and payable balances for the same counterparty under an enforceable netting agreement. Gross amounts offset in the balance sheet includes cash collateral paid of $274 million at March 31, 2017 and $317 million at December 31, 2016. At March 31, 2017 and December 31, 2016, we did not have any financial instrument collateral received/posted.
[3]	At March 31, 2017 and December 31, 2016, we had not received any cash not subject to an enforceable master netting agreement.

Derivative Financial Instrume49

Derivative Financial Instruments - Gain or Loss Recorded on Our Cash Flow Hedging Relationships (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)	$ 0	$ 11
Interest rate swaps [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized in AOCI on Derivative (Effective Portion), Interest Rate Swaps	0	11
Currency swaps [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized in AOCI on Derivative (Effective Portion), Currency Swaps	0	0
Interest Expense [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Reclassed From AOCI into Income (Effective Portion)	0	(3)
Interest Expense [Member] | Interest rate swaps [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Reclassed from AOCI into Income (Effective Portion), Interest Rate Swaps	0	0
Interest Expense [Member] | Currency swaps [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Reclassed from AOCI into Income (Effective Portion), Currency swaps	0	(3)
Derivative related income (loss) [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized In Income on Derivative (Ineffective Portion)	2	4
Derivative related income (loss) [Member] | Interest rate swaps [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion), Interest Rate Swaps	0	0
Derivative related income (loss) [Member] | Currency swaps [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion, Currency swaps)	$ 2	$ 4

Derivative Financial Instrume50

Derivative Financial Instruments - Gain or Loss Recorded on Our Non-Qualifying Hedges (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest Rate Contracts [Member] | Derivative related income (expense) [Member]
Derivatives, Fair Value [Line Items]
Amount of Gain (Loss) Recognized in Derivative Related Income (Expense)	$ 0	$ (119)

Derivative Financial Instrume51

Derivative Financial Instruments - Gain or Loss Recorded on Derivatives Related to Fair Value Option Debt Primarily Due to Changes in Interest Rates (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Total amount of Gain (loss) recognized in derivative related income (expense)	$ (6)	$ 7
Cross currency interest rate contracts [Member] | Gain (loss) on debt designated at fair value and related derivatives [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Currency contracts, Gain (loss) on debt designated at fair value and related derivatives, Amount of Gain (Loss) Recognized in Derivative Related Income (Expense)	$ (6)	$ 7

Derivative Financial Instrume52

Derivative Financial Instruments - Notional Values of Derivative Contracts (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Total	$ 1,765	$ 1,765
Currency swaps [Member]
Derivatives, Fair Value [Line Items]
Total	1,562	1,562
Derivatives designated as hedging instruments [Member] | Currency swaps [Member]
Derivatives, Fair Value [Line Items]
Total	$ 203	$ 203

Accumulated Other Comprehensi53

Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($)		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Unrealized Gains (Losses) on Fair Value Option Debt Attributable to Credit [Abstract]
Balance at beginning of period		$ (19,000,000)	$ 0
Cumulative effect adjustment to initially apply new accounting guidance for fair value option debt attributable to credit, net of tax	[1]			$ (19,000,000)	$ 0
Net (loss) arising during period, net of tax		(5,000,000)	0
Total other comprehensive loss for period		(5,000,000)	0
Balance at end of period		(24,000,000)	0
Cumulative effect adjustment to initially apply new accounting guidance for fair value option debt attributable to credit, tax		(11,000,000)	0
Net (loss) arising during period, tax		(3,000,000)	0
Unrealized gains (losses) on cash flow hedging instruments:
Balance at beginning of period		0	(15,000,000)
Net gains arising during period, net of tax		0	7,000,000
Reclassification adjustment for losses realized in net income, net of tax	[2]	0	1,000,000
Total other comprehensive income for period		0	8,000,000
Balance at end of period		0	(7,000,000)
Net gains arising during period, taxes		0	4,000,000
Reclassification adjustment for losses realized in net income, taxes		0	2,000,000
Pension and postretirement benefit plan liability:
Balance at beginning of period		24,000,000	29,000,000
Reclassification adjustment for losses realized in net income, net of tax	[3]	(1,000,000)	(1,000,000)
Total other comprehensive loss for period		(1,000,000)	(1,000,000)
Balance at end of period		23,000,000	28,000,000
Reclassification adjustment for losses realized in net income, tax		(1,000,000)	(1,000,000)
Total accumulated other comprehensive income (loss) at end of period		(1,000,000)	21,000,000	$ 24,000,000
As Previously Reported [Member]
Unrealized Gains (Losses) on Fair Value Option Debt Attributable to Credit [Abstract]
Balance at beginning of period		$ 0	$ 0
[1]	For information on the adoption of new accounting guidance related to fair value option debt attributable to our credit spreads, see Note 13, "New Accounting Pronouncements."
[2]	The amounts reclassified relate to currency swaps and are included as a component of interest expense in our consolidated statement of income (loss).
[3]	The amounts reclassified are included as a component of salaries and employee benefits in our consolidated statement of income (loss).

Pension and Other Postretirem54

Pension and Other Postretirement Benefits - Components of Pension Expense for Defined Benefit Pension Plan (Detail) - Pension Plan, Defined Benefit [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Interest cost on projected benefit obligation	$ 12	$ 12
Expected return on assets	(14)	(14)
Amortization of net actuarial loss	6	7
Administrative costs	1	1
Net periodic postretirement benefit cost	$ 5	$ 6

Pension and Other Postretirem55

Pension and Other Postretirement Benefits-Post Retirement Benefit Cost (Details) - Other Postretirement Benefit Plan, Defined Benefit [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Interest Cost	$ 1	$ 1
Amortization of reduction in liability resulting from plan amendment	(2)	(2)
Net periodic postretirement benefit cost	$ (1)	$ (1)

Related Party Transactions - Re

Related Party Transactions - Related Party Balances and Income and (Expense) Generated by Related Party Transactions (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Assets:
Cash		$ 203		$ 128
Interest bearing deposits with banks		0		1,500
Securities purchased under agreements to resell		5,582		2,392
Other assets		997		427
Total assets		11,766		13,882
Liabilities
Due to affiliates		802		3,300
Other liabilities		601		610
Total liabilities		$ 5,935		8,448
General term of securities purchased under an agreement to resell		120 days
Income/(Expense):
Servicing and other fees from (to) HSBC affiliates		$ (27)	$ 4
Support services from HSBC affiliates		(23)	(42)
HSBC affiliates [Member]
Assets:
Cash		203		128
Interest bearing deposits with banks		0		1,500
Securities purchased under agreements to resell	[1]	5,582		2,392
Other assets		272		114
Total assets		6,057		4,134
Liabilities
Due to affiliates	[2]	802		3,300
Other liabilities		5		41
Total liabilities		807		$ 3,341
Income/(Expense):
Interest income from HSBC affiliates		9	1
Interest expense paid to HSBC affiliates	[3]	(29)	(75)
Net interest income (expense)		(20)	(74)
Servicing and other fees from (to) HSBC affiliates		(27)	4
Support services from HSBC affiliates		(23)	(42)
Stock based compensation expense with HSBC	[4]	(1)	1
Borrowings [Member] | HSBC affiliates [Member]
Income/(Expense):
Gain on FVO debt with affiliate		$ 3	$ 0
[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.
[3]	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.
[4]	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."

Related Party Transactions - Sc

Related Party Transactions - Schedule of due to Affiliated entities (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Due to affiliates	$ 802	$ 3,300
Due to affiliate, carried at fair value	488	485
HSBC USA, Inc. [Member]
Related Party Transaction [Line Items]
Due to affiliates	0	2,500
HSBC Holdings plc [Member]
Related Party Transaction [Line Items]
Due to affiliates	$ 802	$ 800

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Due to affiliates		$ 802,000,000		$ 3,300,000,000
Long-term debt		4,320,000,000		4,340,000,000
Notional values of derivative contracts		1,765,000,000		1,765,000,000
Derivative related liabilities		46,000,000		12,000,000
Fair value of our agreements with affiliate counterparties required the affiliate to provide collateral		274,000,000		317,000,000
Interest bearing deposits with banks		0		1,500,000,000
Derivative related expense		2,000,000	$ (115,000,000)
HSBC USA, Inc. [Member]
Related Party Transaction [Line Items]
Due to affiliates		0		2,500,000,000
HSBC USA, Inc. [Member] | Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Borrowing capacity of credit facility		$ 5,000,000,000
Debt instrument, term		364 days
Maximum maturity period for borrowings		5 years
Repayments of Lines of Credit		$ 2,500,000,000
Loss on extinguishment of debt		28,000,000
HSBC Holdings plc [Member]
Related Party Transaction [Line Items]
Due to affiliates		802,000,000		800,000,000
HSBC North America [Member] | Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Borrowing capacity of credit facility		$ 1,000,000,000		1,000,000,000
Debt instrument, term		364 days
Amount of credit facility outstanding		$ 0		0
HSBC affiliates [Member]
Related Party Transaction [Line Items]
Due to affiliates	[1]	802,000,000		3,300,000,000
Interest bearing deposits with banks		0		1,500,000,000
HSBC Securities (USA) Inc. [Member]
Related Party Transaction [Line Items]
Receivable transaction assistance fees		5,000,000	0
HSBC Bank USA [Member]
Related Party Transaction [Line Items]
Notional values of derivative contracts		1,800,000,000		1,800,000,000
Receivables services to affiliates		$ 93,000,000		559,000,000
Series C Preferred Stock [Member]
Related Party Transaction [Line Items]
Number of shares of stock issued (shares)		1,000
Dividend paid on preferred stock		$ 22,000,000	$ 22,000,000
Subordinated Debt [Member] | Public Subordinated Debt Issue Maturing 2021 [Member]
Related Party Transaction [Line Items]
Long-term debt		3,000,000,000
Visa Class B Shares [Member] | HSBC USA, Inc. [Member]
Related Party Transaction [Line Items]
Notional values of derivative contracts		58,000,000		50,000,000
Derivative related liabilities		6,000,000		$ 5,000,000
Discontinued Operations [Member]
Related Party Transaction [Line Items]
Derivative related expense		$ (1,000,000)
[1]	Due to affiliates includes amounts owed to HSBC and its subsidiaries as a result of direct debt issuances and excludes preferred stock.

Variable Interest Entities - Su

Variable Interest Entities - Summary of Assets and Liabilities of Consolidated Secured Financing VIEs (Detail) - USD ($) $ in Millions		Mar. 31, 2017	Dec. 31, 2016
Variable Interest Entity [Line Items]
Receivables held for sale	[1],[2]	$ 1,911	$ 5,674
Long-term debt		4,320	4,340
Variable Interest Entity [Member]
Variable Interest Entity [Line Items]
Receivables held for sale		716	750
Total, Consolidated Assets		716	750
Other liabilities		(33)	(11)
Long-term debt		371	404
Total, Consolidated Liabilities		$ 338	$ 393
[1]	At March 31, 2017 and December 31, 2016, receivables held for sale includes $716 million and $750 million, respectively, of closed-end real estate secured receivables which are part of a collateralized funding transaction. These receivables will be sold when they are contractually released as collateral under the public trust and become available for sale. See Note 10, "Variable Interest Entities," for further discussion of our collateralized funding transactions.
[2]	At March 31, 2017 and December 31, 2016, contractually delinquent real estate secured receivables held for sale includes $203 million and $235 million, respectively, that are in the process of foreclosure.

Fair Value Measurements - Carry

Fair Value Measurements - Carrying and Estimated Fair Value (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Financial assets:
Cash	$ 203	$ 128
Interest bearing deposits with banks	0	1,500
Securities purchased under agreements to resell	5,582	2,392
Financial liabilities:
Long-term debt	4,320	4,340
Derivative financial liabilities	46	12
Level 1 [Member]
Financial assets:
Cash	203	128
Interest bearing deposits with banks		1,500
Securities purchased under agreements to resell	0	0
Real estate secured receivables held for sale	0	0
Due from affiliates	0	0
Financial liabilities:
Due to affiliates carried at fair value	0	0
Due to affiliates not carried at fair value	0	0
Derivative financial liabilities	0	0
Level 2 [Member]
Financial assets:
Cash	0	0
Interest bearing deposits with banks		0
Securities purchased under agreements to resell	5,582	2,392
Real estate secured receivables held for sale	0	0
Due from affiliates	272	114
Financial liabilities:
Due to affiliates carried at fair value	488	485
Due to affiliates not carried at fair value	338	2,875
Derivative financial liabilities	46	12
Level 3 [Member]
Financial assets:
Cash	0	0
Interest bearing deposits with banks		0
Securities purchased under agreements to resell	0	0
Real estate secured receivables held for sale	1,921	6,129
Due from affiliates	0	0
Financial liabilities:
Due to affiliates carried at fair value	0	0
Due to affiliates not carried at fair value	0	0
Derivative financial liabilities	0	0
Carrying Value [Member]
Financial assets:
Cash	203	128
Interest bearing deposits with banks		1,500
Securities purchased under agreements to resell	5,582	2,392
Real estate secured receivables held for sale	1,911	5,674
Due from affiliates	272	114
Financial liabilities:
Due to affiliates carried at fair value	488	485
Due to affiliates not carried at fair value	314	2,815
Derivative financial liabilities	46	12
Estimated Fair Value [Member]
Financial assets:
Cash	203	128
Interest bearing deposits with banks		1,500
Securities purchased under agreements to resell	5,582	2,392
Real estate secured receivables held for sale	1,921	6,129
Due from affiliates	272	114
Financial liabilities:
Due to affiliates carried at fair value	488	485
Due to affiliates not carried at fair value	338	2,875
Derivative financial liabilities	46	12
Long-term Debt Carried at Fair Value [Member] | Level 1 [Member]
Financial liabilities:
Long-term debt	0	0
Long-term Debt Carried at Fair Value [Member] | Level 2 [Member]
Financial liabilities:
Long-term debt	1,326	1,317
Long-term Debt Carried at Fair Value [Member] | Level 3 [Member]
Financial liabilities:
Long-term debt	0	0
Long-term Debt Carried at Fair Value [Member] | Carrying Value [Member]
Financial liabilities:
Long-term debt	1,326	1,317
Long-term Debt Carried at Fair Value [Member] | Estimated Fair Value [Member]
Financial liabilities:
Long-term debt	1,326	1,317
Long Term Debt Not Carried at Fair Value [Member] | Level 1 [Member]
Financial liabilities:
Long-term debt	0	0
Long Term Debt Not Carried at Fair Value [Member] | Level 2 [Member]
Financial liabilities:
Long-term debt	3,344	3,359
Long Term Debt Not Carried at Fair Value [Member] | Level 3 [Member]
Financial liabilities:
Long-term debt	0	0
Long Term Debt Not Carried at Fair Value [Member] | Carrying Value [Member]
Financial liabilities:
Long-term debt	2,994	3,023
Long Term Debt Not Carried at Fair Value [Member] | Estimated Fair Value [Member]
Financial liabilities:
Long-term debt	$ 3,344	$ 3,359

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Millions		Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative related liabilities		$ (46)	$ (12)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Due to affiliates carried at fair value		0	0
Derivative related liabilities		0	0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Due to affiliates carried at fair value		(488)	(485)
Derivative related liabilities		(46)	(12)
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Due to affiliates carried at fair value		0	0
Derivative related liabilities		0	0
Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Netting	[1]	(21)	(15)
Netting	[1]	295	332
Recurring [Member] | Derivative netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Netting	[1]	(21)	(15)
Netting	[1]	295	332
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets before netting		0	0
Total assets		0	0
Due to affiliates carried at fair value		0	0
Derivative related liabilities before netting		0	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure		0	0
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Currency swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets before netting		0	0
Derivative related liabilities before netting		0	0
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Derivative netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets before netting		0	0
Derivative related liabilities before netting		0	0
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets before netting		21	15
Total assets		21	15
Due to affiliates carried at fair value		(488)	(485)
Derivative related liabilities before netting		(341)	(344)
Financial and Nonfinancial Liabilities, Fair Value Disclosure		(2,155)	(2,146)
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Currency swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets before netting		21	15
Derivative related liabilities before netting		(341)	(344)
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Derivative netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets before netting		0	0
Derivative related liabilities before netting		0	0
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets before netting		0	0
Total assets		0	0
Due to affiliates carried at fair value		0	0
Derivative related liabilities before netting		0	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure		0	0
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Currency swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets before netting		0	0
Derivative related liabilities before netting		0	0
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Derivative netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets before netting		0	0
Derivative related liabilities before netting		0	0
Long-term Debt Carried at Fair Value [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt carried at fair value		0	0
Long-term Debt Carried at Fair Value [Member] | Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt carried at fair value		(1,326)	(1,317)
Long-term Debt Carried at Fair Value [Member] | Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt carried at fair value		0	0
Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Due to affiliates carried at fair value		(488)	(485)
Derivative related liabilities		(46)	(12)
Estimated Fair Value [Member] | Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets		0	0
Total assets		0	0
Due to affiliates carried at fair value		(488)	(485)
Derivative related liabilities		(46)	(12)
Financial and Nonfinancial Liabilities, Fair Value Disclosure		(1,860)	(1,814)
Estimated Fair Value [Member] | Recurring [Member] | Currency swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets		21	15
Derivative related liabilities		(341)	(344)
Estimated Fair Value [Member] | Recurring [Member] | Derivative netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial assets		(21)	(15)
Derivative related liabilities		295	332
Estimated Fair Value [Member] | Long-term Debt Carried at Fair Value [Member] | Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt carried at fair value		$ (1,326)	$ (1,317)
[1]	Represents counterparty and swap collateral netting which allow the offsetting of amounts relating to certain contracts when certain conditions are met.

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on Non-recurring Basis (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Gains (Losses)		$ 111	$ (99)
Real estate secured receivables held for sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Gains (Losses)		113	(68)
Receivables Held-for-Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Gains (Losses)	[1]		(26)
Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Gains (Losses)	[2]	(2)	(5)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total receivables held for sale		0		$ 0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total receivables held for sale		0		0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total receivables held for sale		1,921		6,129
Non-Recurring Fair Value Measurements [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a non-recurring basis		0	0
Non-Recurring Fair Value Measurements [Member] | Level 1 [Member] | Real estate secured receivables held for sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total receivables held for sale		0	0
Non-Recurring Fair Value Measurements [Member] | Level 1 [Member] | Receivables Held-for-Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivables held for investment	[1]		0
Non-Recurring Fair Value Measurements [Member] | Level 1 [Member] | Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate owned	[2]	0	0
Non-Recurring Fair Value Measurements [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a non-recurring basis		26	1,653
Non-Recurring Fair Value Measurements [Member] | Level 2 [Member] | Real estate secured receivables held for sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total receivables held for sale		0	1,299
Non-Recurring Fair Value Measurements [Member] | Level 2 [Member] | Receivables Held-for-Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivables held for investment	[1]		274
Non-Recurring Fair Value Measurements [Member] | Level 2 [Member] | Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate owned	[2]	26	80
Non-Recurring Fair Value Measurements [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a non-recurring basis		1,911	6,886
Non-Recurring Fair Value Measurements [Member] | Level 3 [Member] | Real estate secured receivables held for sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total receivables held for sale		1,911	6,886	5,674
Non-Recurring Fair Value Measurements [Member] | Level 3 [Member] | Receivables Held-for-Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivables held for investment	[1]		0
Non-Recurring Fair Value Measurements [Member] | Level 3 [Member] | Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate owned	[2]	0	0
Total [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total receivables held for sale		1,921		$ 6,129
Total [Member] | Non-Recurring Fair Value Measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value on a non-recurring basis		1,937	8,539
Total [Member] | Non-Recurring Fair Value Measurements [Member] | Real estate secured receivables held for sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total receivables held for sale		1,911	8,185
Total [Member] | Non-Recurring Fair Value Measurements [Member] | Receivables Held-for-Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivables held for investment	[1]		274
Total [Member] | Non-Recurring Fair Value Measurements [Member] | Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate owned	[2]	26	80
Real Estate Secured Receivables Held for Sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets transferred from Level 3 to Level 2		$ 3,665	$ 1,299
[1]	Total gains (losses) for the three months ended March 31, 2016 include amounts recorded on receivables that were subsequently transferred to held for sale.
[2]	Real estate owned is required to be reported on the balance sheet net of transactions costs. The real estate owned amounts in the table above reflect the fair value of the underlying asset unadjusted for transaction costs.

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative Information for Non-Recurring Fair Value Measurements (Detail) - Level 3 [Member] - USD ($) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Receivables held for sale carried at the lower of amortized cost or fair value		$ 1,921	$ 6,129
Real estate secured receivables held for sale [Member] | Third Party Appraisal Valuation [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Collateral loss severity rates	[1]	0.00%	0.00%
Expenses incurred through collateral disposition		5.00%	5.00%
Market discount rate		4.00%	4.00%
Real estate secured receivables held for sale [Member] | Third Party Appraisal Valuation [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Collateral loss severity rates	[1]	100.00%	100.00%
Expenses incurred through collateral disposition		10.00%	10.00%
Market discount rate		14.00%	14.00%
Real estate secured receivables held for sale [Member] | Non-Recurring Fair Value Measurements [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Receivables held for sale carried at the lower of amortized cost or fair value		$ 1,911	$ 5,674	$ 6,886
[1]	At March 31, 2017 and December 31, 2016, the weighted average collateral loss severity rate was 43 percent and 51 percent, respectively, taking into consideration both expected net cash flows as well as current collateral values.

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Weighted average collateral loss severity rate (percent)	43.00%	51.00%
Minimum period to update carrying values for real estate owned properties	45 days

Litigation and Regulatory Mat65

Litigation and Regulatory Matters - Additional Information (Detail)	1 Months Ended
	Mar. 31, 2017USD ($)
Loss Contingencies [Line Items]
Estimate of possible loss	$ 390,000,000
Consumer Relief through Receivable Modification Programs [Member] | Foreclosure Litigation [Member]
Loss Contingencies [Line Items]
Litigation settlement amount	$ 370,000,000

New Accounting Pronouncements (

New Accounting Pronouncements (Details) - USD ($) $ in Millions		Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
Cumulative effect of new accounting principle	[1]	$ (19)	$ 0
Accounting Standards Update 2016-01 [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | Accumulated other comprehensive income (loss)
New Accounting Pronouncement, Early Adoption [Line Items]
Cumulative effect of new accounting principle		(19)	0
Accounting Standards Update 2016-01 [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | Accumulated deficit
New Accounting Pronouncement, Early Adoption [Line Items]
Cumulative effect of new accounting principle		19	0
Accounting Standards Update 2016-09 [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | Accumulated deficit
New Accounting Pronouncement, Early Adoption [Line Items]
Cumulative effect of new accounting principle		$ 4	$ 0
[1]	For information on the adoption of new accounting guidance related to fair value option debt attributable to our credit spreads, see Note 13, "New Accounting Pronouncements."